RETAIL DEVELOPMENT : A CASE STUDY

Abstract

Real estate is a very complex commodity which involves the consideration of many intricate issues concerning the physical, economic, social and institutional aspects. In recent years, the development of shopping centres has become one of the most exciting form of real estate development in Singapore. In addition, there is also a growing trend towards large scale shopping complexes. Orchard Road has emerged as the primary shopping area in the 1970's with at least 20 shopping centres distributed along this 2.4 km road. Even though Orchard Road is a tourist belt and a prime location for shopping centre development, not all the shopping centres have been successful. This case study was thus undertaken primarily to examine the feasibility and viability of a proposed shopping centre along this primary shopping area. In the analysis, four major components have been considered namely, site analysis, market analysis, marketing strategy and cash flow analysis. In view of the complex nature and sophistication of shopping centre development, feasibility analysis has become the key component in the development process which aids the investors in making investment decisions. It is also essential to engage professionals to plan every detail of the development to ensure its success. The involvement of property consultants throughout the development process of the proposed development thus reflects the need for a professional approach. This also suggests a high degree of sophistication and expertise required for real estate development decisions.