KUALA LUMPUR: Penang’s residential launches which resumed in 2023 are expected to gain momentum in 2024, CBRE|WTW said.
In its Real Estate Market Outlook 2024 report launched today, the property consultancy said new launches of high-rise residentials will comprise mainly those located on the island, while landed residentials will be in Seberang Perai.
The most active sector in Penang in the third quarter (3Q) of 2023 continued to be housing which accounted for 77 per cent of total transactions, the report said.
"The active market has improved the residential overhang situation, which decreased to 3,341 units in the 3Q 2023 compared with 5,754 in the 3Q 2022.”
It is a buyer’s market with some bargain hunting in the high-rise segment while landed units are observed to be "good for capital investment.”
The report said retirement resort developments have also attracted growing interest against a backdrop of state government initiatives to encourage more affordable housing projects.
Meanwhile, in the first nine months of 2023, Penang’s property transactions continue to trend higher with 17,953 units changing hands compared with 17,297 units in the same period a year ago, valued at RM13.21 billion and RM9.51 billion, respectively.
The report said major catalytic infrastructure projects such as the Penang Silicon Island, originally known as the Penang South Reclamation Project, the Penang Light Rail Transit project and Penang International Airport expansion will sustain the island’s growth trajectory.
The 920-hectare Penang Silicon Island project will be developed as a smart city with Multimedia Super Corridor Cybercity status and is set to enhance the state’s foreign and domestic direct investment and tourism appeal.
Construction for the Light Rail Transit (LRT) is set to begin early this year, with its first phase to take five years. The LRT line will link various key locations including the airport and city centre.
The Penang International Airport expansion is aimed to boost tourism by increasing its capacity to 12 million passengers per year from the current 6.5 million. The project is expected to begin in September 2024 and will take between three and four years, the report said. - Bernama
