First off, a word of caution. To date, the droves of tourists that were expected with mainland China’s opening have yet to materialise. With China’s slowdown, the familiar sight of free-spending Chinese tourists queuing to gain entry to the luxury boutiques of Paragon, ION Orchard and Ngee Ann City may not reappear anytime soon.
For investors, the beneficiaries of the eventual recovery in tourism are likely to be the owners of the dominant malls along Orchard Road. These will likely be ION Orchard, Paragon, Ngee Ann City, Wisma Atria, 313@Somerset and perhaps The Centrepoint.
Plum sites along the so-called “West Orchard Road” — a moniker coined by OCBC Securities some years ago — are held by Hotel Properties, which also has a stake in Paragon REIT, which owns Paragon.
