Developers shift to shopping malls for stable revenue amid cooling housing market

Taiwanese developers are shifting their focus toward shopping centers as the residential market continues to cool, seeking more stable sources of revenue. Several prominent developers have recently unveiled new plans, indicating that such investments have become a development trend for the next decade.

Kuan-Teh (stock code 2520) has officially announced that it will build a new commercial complex in the Global Mall area by 2028. This move not only expands its retail footprint but also aligns with Global Mall’s strategy of becoming a multi-functional hub, integrating office, dining, and entertainment services to increase customer dwell time and consumption frequency.

Liberty International is collaborating with Japanese retail brand Nitori to jointly develop the Yuanshan Mall. Positioned as a high-end fashion and lifestyle center, the mall is expected to attract both domestic and international tourists as well as local consumers, while enhancing its brand image and market competitiveness through cross-border brand partnerships.

Yuanshan International completed the acquisition of two shopping centers from Daluge at the end of last year and has incorporated them into its chain shopping center management system. Using this as an opportunity, Yuanshan is expanding its retail layout and plans to integrate these two malls into its proprietary brand and service network to achieve economies of scale.

Experts note that weakening demand in the residential market has placed developers under pressure regarding capital turnover and profit margins. Shopping centers, with their relatively stable rental income and diversified business formats, have become an ideal investment option. In the long term, as consumer preferences shift toward experiential shopping, shopping centers will continue to upgrade, becoming vital nodes in urban life.

This transformation not only provides developers with more stable cash flow but also creates job opportunities for local economies and boosts urban vitality. Investors, however, must pay close attention to changes in the retail market and innovations in mall operating models to seize investment opportunities over the next decade. (Source: Central News Agency)