There is cautious optimism over the outlook for the Penang property market, in spite of the inevitable headwinds and challenges that lie ahead.

Knight Frank Penang executive director Mark Saw says the overall outlook for the Penang market remains relatively positive despite the anticipated global recession, coupled with higher interest rates and inflation.

“The continuous hike of interest rates translates into higher monthly loan repayments, particularly housing loans.

“This reduces the probability of getting loan approval for individuals who apply for a property mortgage, resulting in relatively less property transactions,” he tells StarBizWeek.

Saw points out that any increase in rates will also cause additional financial burdens to existing subscribers of the loan facility, particularly conventional ones.

“On the other hand, higher inflation tends to lead to higher property prices, which indirectly reduces those who can afford homes,” Saw says.

He adds that rising interest rates and inflation are expected to cause imbalance in the property market in the medium to long term.

“However, the short-term impact on the property market should be minimal.”

With the recent general election now concluded and with a new government in place, Saw says there is hope that the unity government, led by Pakatan Harapan, will be able to steer the country in the right direction for the next five years.

“Optimism and hope are two ingredients in which they can build upon,” he says.

Fewer launches

CBRE|WTW, in its property market performance for the first half of 2022, says it is cautiously optimistic about the overall Penang market.

“Fewer new launches are expected due to the rise in raw material prices and shortage of foreign workers.

“Correction in the high-rise residential market will continue in the near future with fewer new launches and a reduction in overhang, as more unsold units are progressively absorbed by the market with the aid of developers’ marketing strategy.”

Saw says the Penang residential sector performed better during the third quarter of 2022, compared with the previous quarter in terms of both volume and value of transactions.

“A total of 4,879 residential transactions valued at RM2.21bil were transacted during the third quarter of 2022, which was an increase of 12.9% in volume and 15.7% in value of transactions, compared to the second quarter of 2022 (4,323 transactions valued at RM1.91bil).

“The reopening of borders did not have any major impact on the residential market in the state,” he says.

Knight Frank Research, in its Malaysia Real Estate Highlights report for the first half of 2022, says the return of property buyer confidence is bolstered by the success of the national Covid-19 immunisation programme, which led the country’s transition to the endemic phase.

“Coupled with the reopening of borders to international visitors, this is deemed positive to the recovery of the state’s residential property market.”

Office sector

Due to the limited supply of better grade office space in Penang, Knight Frank says the state’s office segment continues to hold steady with stable rents and occupancy rates.

“Generally, there is growing demand for new office buildings with better specifications, as well as those with Multimedia Super Corridor (MSC) status due to the growing global business services (GBS) sector.”

CBRE|WTW, meanwhile, says the Penang office market is expected to prevail in the short term, as the office workplace remains significant for face-to-face interactions and team collaborations.

Retail sector

Boosted by the freedom euphoria as Malaysia transitioned into endemicity, as well as the relaxation of standard operating procedures, CBRE|WTW says the normalisation of shopping activities has been rapid as Malaysians have been travelling and spending more domestically.

“The short-term outlook for the retail sector remains in recovery with retail complexes becoming popular as hang-out venues. Retail complexes will continue attracting footfall through a safe and convenient shopping environment.”

However, it says the challenges to recovery are expected to abound, including inflation, which would result in the reduction of purchasing power, escalation of living costs and increase in business operation costs.

Industrial sector

Knight Frank believes that the industrial segment is the “silver lining” in the state’s property market.

“Batu Kawan Industrial Park will continue to be the main hotspot as over the next three years, Penang Development Corp (PDC) plans to develop between 100 acres and 150 acres of industrial land annually.”

Moreover, in order to attract more interests from foreign investors, Knight Frank says Penang is also planning a new industrial park in Kepala Batas.

“It will create a smart and high-tech industrial park with the best infrastructure for 5G Internet access.

“There is also encouraging demand for logistics facilities to serve the expanding eCommerce and logistics sector.”

Meanwhile, CBRE|WTW says the encouraging investment activities and external trade augur well for the industrial property sector.

Source: TheStar.com.my

The opening of Stonyhurst International School in Straits Quay marks one of the most significant milestones in the over 400-year history of Stonyhurst College, United Kingdom, and in Penang.

Built on 4.3 acres of land, Stonyhurst International School boasts state-of-the-art facilities, designed with 21st-century teaching and learning pedagogy in mind.

The grand opening of the school was opened by Penang Governor Tun Ahmad Fuzi Abdul Razak, and attended by Chief Minister Chow Kon Yeow, Deputy Education Minister Lim Hui Ying, Titular Roman Catholic Bishop of Penang Right Rev Datuk Sebastian Francis, CMI deputy general manager Datin S. Bharathi, United Kingdom Stonyhurst College headmaster John Browne, Stonyhurst International School Board of Governors chairman Michael Sng, and Stonyhurst International School principal Justin Thomas Durling.

Also present were state Tourism and Creative Economy Committee chairman Yeoh Soon Hin, Bukit Bendera MP Syerleena Abdul Rashid, Air Itam assemblyman Joseph Ng and Pengkalan Kota assemblyman Daniel Gooi.

Chow congratulated the school for achieving an important milestone.

“Constructing a new school is not an overnight feat. It takes much effort in planning and perseverance.

“And the end product is what we finally get to witness this morning, which is another successful public-private partnership between the state government and a historic education establishment.

“As multinational companies continue to place faith in Penang, Penang must find ways to remain attractive to foreign investors.

“One way of achieving that is by building a vibrant mesh of industry players, including education institutions.

“There is a need to prepare the younger generation to meet the needs and demands of the future economy while encouraging young leaders to celebrate diversity in becoming effective and compassionate global citizens.

“Additionally, there is also a need to provide high-quality education to the families of foreign talents in the state.

“I am confident that Stonyhurst International School, offering the best in British education, will lead the way in helping Penang to groom and showcase its world-class talent pool for the future while supporting the Penang2030 vision of ‘A Family-Focused Green and Smart State that Inspires the Nation’,” he said in his speech at the school in Straits Quay yesterday.

Browne spoke about three qualities – courage, virtue and family – in his speech.

“Your education here is designed to give you the courage to be yourself. Use your education to ‘change the world’ for others.

“The virtue tree at the entrance to this beautiful school demonstrates the central place of the Jesuit Pupil Profile to this whole community.

“At Stonyhurst Penang, we are developing young people of competence, conscience and compassion. It is a journey towards human excellence. As the school song says, being ‘men and women for others’,” he said.

Browne also told the students that the Stonyhurst family and Jesuit Pupil Profile are there to guide their boats on their journey to be the best that they could be.

Meanwhile, Sng said gratitude was the first value that the school was cultivating.

“We are encouraging our students to be grateful to their parents for the gift of education.

“Similarly, we are grateful for the privilege of educating the students who have been entrusted to us,” he said.

At the ceremony, the invited guests were treated to amazing music and singing performances by talented pupils.

Source: Buletin Mutiara

View of Relau Hills (for illustration only)

For many years, Penang has been restricting and controlling developments which are conducted on slope land.

Chief Minister Chow Kon Yeow said developments were not allowed on Class Three and Four slopes and if earthworks were necessary, they had to comply with various geotechnical requirements.

“We have been doing this for many years and not only on campsites; but also other developments such as high-rises, and others which involved even larger footprints and more intensive constructions,” he replied a journalist regarding the safety of campsites in Penang, following the fateful landslide incident at a popular campsite in Batang Kali.

Chow highlighted the use of the Penang Safety Guideline for Hill Site Development (2nd edition 2020) which was a revised version of the 2012 guideline and has been prepared to further enhance the safety and sustainability of hill site developments.

“We are saddened by the news of the landslide tragedy in Batang Kali. Our hearts go out to the friends and families of the victims during this difficult time.

“Campsites of other developments should only be allowed after they have obtained the necessary approvals, and not build then try to apply for the approvals,” he said.

Chow said he was aware that the Penang Island City Council (MBPP) had approved the development of the Boulder Valley Glamping in Teluk Bahang.

“Boulder Valley had gone through all the rezoning and planning processes before finally completing its development.

“It has been open for a few years now.

“This project is different (from the impacted campsite in Batang Kali) because it is an approved project that has gone through various planning and engineering processes.

“We believe projects such as this can only be approved after they have complied with all the requirements,” he said.

Chow said there might be some campsites which have been set up without approvals.

“Depending on their locations, they may pose safety concerns especially if they are located in hilly areas.

“Developments near the slope must always monitor their slopes.

“Penang Hill is one good example. The slopes have been monitored regularly, but the hill still experienced many landslides in the past. Landslides are still occurring.

“Hence, developments near the slope must always monitor their slope. If necessary, they need to strengthen the slope by building enforcement structures,” he added.

Source: Buletin Mutiara

Ari Altitude is an affordable housing project by PTL Alpha Sdn. Bhd. (part of of PTL Properties Sdn. Bhd.) in the matured township of Alma in Bukit Mertajam. Located along Jalan Santuari 3, next to Permatang Sanctuary housing scheme by IJM. It is less that 5 minutes drive to Lotus’s and AEON Mall via Jalan Rozhan, and about 15 minutes’ drive to both Penang main and 2nd bridges.

This development features a 30-storey affordable condominium with smart home concept. It comprises 500 residential units with 8 levels of car parking podium and a swimming pool. The new home will offer a standard built-up size of 950sq.ft. with 3 bedrooms and 2 bathrooms.

Property Project : Ari Altitude
Location : Alma, Bukit Mertajam
Property Type : Affordable housing
Built-up Size: 950sq.ft. onwards
Total Units:: 500
Tenure : Freehold
Indicative Price: RM250.000 onwards
Developer : PTL Alpha Sdn. Bhd.

SITE PROGRESS

SITE PROGRESS: Ari Altitude (May 2025)

SITE PROGRESS: Ari Altitude (Feb 2025)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

The much-talked about cable car project for Penang Hill is set to become a reality.

Chief Minister and Penang Hill Corporation (PHC) chairman Chow Kon Yeow said Hartasuma Sdn Bhd, a homegrown pioneer in the local rail industry, has successfully won the bid for the cable car project.

He said Hartasuma was chosen from among six companies which submitted the Request for Proposal (RFP) for the project.

He said Hartasuma was awarded the job based on the company’s financial capability, proposed cable car system provider, technical and operational capabilities, environmental protection measures and proposal at the time of bidding.

“The estimated investment by Hartasuma is expected to be RM245 million and the project is based on a 30-year concession period.

“The project is expected to take three years to fully complete and be operational.

“With the new cable car in place, Penang will gain another iconic tourist attraction in addition to the existing funicular railway that has served residents and visitors at the Penang Hill for almost 100 years,” he said today.

Chow hoped that the new cable car project would help redistribute traffic particularly during the peak seasons, completing the existing century status of the funicular service from the Air Itam area.

“We hope this greener mode of transportation will further enhance the tourism experience and contribute to the socio-economic of the surrounding areas, which will offer approximately 500 job opportunities.

“With an annual visitor population of over 1.3 million, we hope the cable car will play a practical role in tourist load balancing.

“PHC is looking forward to implementing environmentally-friendly transportation option for visitors to the cable car station to reduce carbon emissions in the Penang Hill Biosphere Reserve area,” he added.

Chow said the alignment and the suitability of the location of the cable car project was taken into consideration by the Evaluation Committee, with most feasible route alignment site near the Penang Botanic Gardens.

Meanwhile, Hartasuma executive director Tan Sri Ravindran Menon said the construction phase would take between 18 and 20 months to complete.

“However, we need to get all the necessary approvals, which will take some time to obtain as it involves various authorities,” he said.

It was reported that the federal government had, in April 2020, announced that the RM100 million initial allocation for the Penang Hill cable car project had been cancelled.

Penang subsequently announced a RFP for the project.

Source: NST Online