PARADIZ CENTRE : PROSPECTS AND THREATS

Abstract

The popularity of integrated planned shopping centres, which have mushroomed all over the island, is due to the adoption of the one-stop concept where there is an agglomeration of various retail functions within a single building. In the face of the economic downturn Paradiz Centre, a newly completed shopping-cum-office complex, has further increased the competitiveness in the retail market. Against this backdrop, a study has been undertaken to assess the potential of this new venture. The study first examined the factors affecting the performance of the subject property, namely, locational, physical and economic. A market analysis was then undertaken to ascertain the tenant mix that will enhance the performance of the centre. Finally the future prospects and threats faced by the subject property were looked into. Located at the end of the tourist belt, Paradiz Centre faces competition from the more established shopping centres in Orchard Road. However the market analysis reveals that the shoppers who frequent the stretch of shopping centres along Selegie Road are mainly the residents and the office workers "exploiting" the convenience of shopping near to their home or work place. When the MRT station at Dhoby Ghaut is completed in a year's time, the performance of Paradiz Centre is likely to be enhanced with a high volume of pedestrian traffic generated. However with more extensive retail developments in the future which is likely to take advantage of these strategic sites, the survival of Paradiz Centre will depend on its ability to adapt to new trends and demands of the future.