No crowd due to WFH: Shops at Changi Business Park forced to close as sales plunge up to 80%

Shops at Changi Business Park have been forced to close due to a lack of crowds as people work from home.

According to Lianhe Zaobao, many saw business slip 70 to 80 per cent as employees stay home due to Covid-19 safety measures.

The pandemic safety measures have led to a reduction in the flow of people in the mall, a spokesperson for Changi City Point said.

The mall is helping tenants with rental rebates to tide over this period, and also assisting them in marketing and digitalising their businesses to reach the wider online audience.

The Changi Business Park area began operations in 1997 and had attracted businesses from industries such as commerce and deep-tech. It houses companies including IBM, Xilinx, DBS and Standard Chartered Bank.

Ascendas Reit is introducing measures like free parking during lunch hours to attract more business to its food and beverage (F&B) tenants during Phase 2 (Heightened Alert).

It is optimistic that more employees will return to the office as vaccination rates increase and the government relaxes restrictions.

At least one real estate manager is confident that business will do better than now.

The spokesperson for ESR Real Estate Investment Trust (ESR-Reit), which runs ESR BizPark@Changi said that current occupancy rates are similar to pre-pandemic levels, and it expects more tenants in the coming months as tenants leave pricy central business district locations and look for alternatives.

ESR-Reit said: “As more companies adopt telecommuting arrangements, they will look for cheaper options than offices in the CBD to accommodate necessary services.”

Featured Image Credit: Daniel Food Diary