According to a news report from TheStar newspaper, Industrial property transactions and prices in Penang are predicted to experience a significant rise of approximately 10% in 2024 due to the growing demand for industrial properties. One Asia Property Consultants (Pg) Sdn Bhd executive director Chandra Mohan Krishnan has stated that the current pricing, ranging from RM65 per sq ft to RM90 per sq ft, is likely to be adjusted upwards to meet the increasing demand.

Referring to a report by the National Property Information Centre (Napic), the number of industrial property transactions in Penang has already seen an increase, with 522 transactions in 2022 compared to 464 in the previous year. Furthermore, the value of transacted industrial properties also rose from RM1.61 billion in 2021 to RM1.62 billion in 2022. Chandra Mohan Krishnan expects the number of industrial property transactions to surge by 10% in 2024.

The report also highlights the emerging site for new industrial investments, the Northern Seberang Prai (SPU). In 2022, SPU recorded 77 industrial property transactions valued at RM67.39 million, compared to 70 transactions in 2021 worth RM73.7 million. Chandra explains that the decrease in transaction value was due to the sale of large tracts of land, which typically leads to a decrease in pricing.

In the first quarter of 2023, Penang witnessed a rise in industrial property transactions, with 142 properties transacted compared to 110 in the corresponding period of the previous year. Central Seberang Prai (SPT) and South Seberang Prai (SPS) also experienced an increase in transactions, with 260 and 107 transactions in 2022, respectively, compared to 224 and 95 in 2021.

The sales of industrial properties in Ideal Capital Bhd’s Penang Technology Park @ Bertam have been strong since its launch in March 2023. Approximately 30% of the first phase of PTP@Bertam has been sold, thanks to its accessibility to the North-South Highway Bertam Toll and Butterworth-Kulim Expressway, as well as its proximity to surrounding housing estates and educational institutions.

The industrial sub-sector in Malaysia as a whole has seen significant growth, with 8,082 transactions worth RM21.16 billion in 2022. Compared to 2021, this represents a 44.5% increase in volume and a 24.8% increase in value. The overhang situation in the industrial sector remained manageable, with a decrease in overhang volume and value compared to the previous year.

Penang, along with Sarawak and Johor, accounted for a notable share of the industrial overhang. However, Penang’s appeal as an alternative manufacturing site to China remains strong, especially in the electronics and electrical industry. The industry plays a significant role in Malaysia’s economy, accounting for 38% of total exports and attracting high levels of investments.

To support the growing demand for industrial land in Penang, the Penang Development Corp (PDC) is developing the infrastructure for 800 acres of land in East Batu Kawan, which is expected to be completed by 2028. This development aims to cater to the strong demand from multinational corporations (MNCs) from various countries seeking alternative investment destinations.