SINGAPORE: Business at Northshore Plaza in Punggol town has been hit hard by rent hikes and competition from a newly opened mall nearby, according to tenants and residents.

This has led to the closure of several retail units at the shopping centre, located in Singapore's northeast and comprising two sections - Northshore Plaza 1 and 2 - connected by a bridge across Northshore Drive. 

When CNA visited the mall on Monday (Apr 14), there were at least 10 retail spaces - out of about 50 in total - that were either vacant or in the process of being replaced by a new tenant.

A staff member at a dental clinic, who declined to be named, said that since she began working there from August 2024, she has seen at least six shops close down - including a Chinese herbal store, a pizzeria, a Japanese restaurant and hotpot chain Haidilao. 

“There are fewer options for lunch now, and it’s very boring,” she said.

A worker at food stall Super Wok - who also declined to be named - said business has dropped by about 30 per cent since the opening of Punggol Coast Mall last month, after Punggol Coast MRT station opened in December. 

“A lot of residents prefer to go to Punggol Coast Mall, and residents won’t walk past Northshore Plaza on the way to Punggol Coast MRT station,”  he said in Mandarin. 

He added that the newer, air-conditioned mall was a bigger draw than Northshore Plaza, which has an open-air concept.

An employee at ice cream chain Creamier said the drop in business was up to 15 per cent, with the opening of Punggol Coast Mall. 

CNA observered that footfall at Northshore Plaza during lunch hour was sparse, and most food and beverage establishments had several vacant tables.

Most retail shops such as Decathlon and Nippon Home also appeared close to empty, with only a couple of customers milling about.

The rise in rentals is another point of contention for tenants. 

A hairstylist at Kerluxe Hair Studio, who wanted to be known only as Mr Tan, estimated that in 3.5 years working there, rental has increased by up to 20 per cent. 

The Creamier staff member said that when Northshore Plaza first opened, early tenants were offered discounts on rentals, which gradually tapered off. 

The mall opened in two phases - Northshore Plaza 1 in 2021 and Northshore Plaza 2 in 2022.

The exits of some tenants prompted Member of Parliament for Punggol Coast ward Janil Puthucheary to post a video on social media on Sunday, saying that almost all the tenants at the plaza have renewed their leases.

“Only a few of the lots are vacant, and HDB (Housing Development Board) has received bids for new tenants to move in, and they will,” he said. 

He acknowledged that rents have gone up by 10 per cent for most shops, but expressed confidence in new shops moving in.

CNA has also contacted mall operator and real estate services firm Jones Lang LaSalle for comment.

CUSTOMERS WEIGH IN

Residents told CNA that while it was disappointing to see businesses closing down and their shopping options dwindling, they were satisfied as long as essentials like the supermarket, food court and sports store remained open. 

Engineer Joseph Ng, 31, Northshore Plaza was not going to attract visitors from afar due to its location.

“They need to cater for the residents, that’s why maybe shops like Haidilao were not doing so well, and had to close down.” 

Agreeing, a 34-year-old resident, who only wanted to be known as Ms Ang, pointed to shops that had closed down such as seafood restaurant Dancing Crab.

“We wouldn’t be eating Dancing Crab on a daily basis, it’s more of a weekend treat,” said the resident of five years. “They should have places open here with more affordable prices.” 

Resident Axel Teo said it was a vicious cycle of shops closing and footfall dropping for other stores nearby.

And those CNA spoke to could see why more people were stopping by Punggol Coast Mall more often compared with Northshore Plaza. 

“It would be more attractive," said Mr Ng. "It’s right at the MRT station, and so it’s more accessible for residents."