GEORGE TOWN: The state government has no immediate plans to lower the reserve price of a prime 2.43ha plot beside Gurney Bay, despite failing to attract bidders at a recent auction.
Citing another plot in the area which was sold at a benchmark similar to the reserve price, Chief Minister Chow Kon Yeow said the state government declined to speculate whether the RM313.6mil reserve price would be lowered if another auction was held.
“In determining the reserve price, we took into account the land value stipulated in the agreement, which is RM1,200 per square feet (psf), as well as other land transactions.
“For example, a plot along Jalan Pangkor, near Gleneagles Hospital, was also transacted at about RM1,200psf,” he said.
The plot off Persiaran Gurney was part of a 53ha reclamation project carried out alongside Gurney Bay from 2016 to 2019.
Chow was replying to a supplementary question from Air Putih assemblyman Lim Guan Eng (PH-DAP), who asked whether the failed auction would affect the land’s value and whether the reserve price would be lowered.
Following the absence of bids at the initial auction, it was reported that several real estate industry players had said the reserve price and uncertainty over the permissible plot ratio could complicate the plot’s financial viability, while citing that a price of RM900psf to RM1,000psf would be more attractive.
In an earlier reply to Lim’s oral question, Chow said the auction had been publicised through newspaper advertisements, government websites and notices to the Real Estate and Housing Developers’ Association (Rehda).
Advertisements were published on Sept 7, giving prospective buyers 30 days’ notice before the auction.
However, he said participation depended on the interest of qualified bidders and could not be guaranteed by the land administrator, adding that any decision to hold another auction rests with the state authorities.
The land, identified as PT858 (Plot 7A) in Bandar Tanjung Pinang, forms part of a land-swap arrangement with Consortium Zenith Construction Sdn Bhd (CZC) to finance the construction of the Ayer Itam-Tun Dr Lim Chong Eu Expressway bypass.
Proceeds from the sale were intended to help settle claims for completed construction work, with any surplus to be shared between CZC and the state government, as per the agreement.
In separate replies to Bertam assemblyman Datuk Seri Reezal Merican Naina Merican (BN-Umno), Komtar assemblyman Teh Lai Heng (PH-DAP) and Pulau Betong assemblyman Mohamad Shukor Zakariah (PN-PAS), state infrastructure and transport committee chairman Zairil Khir Johari said the bypass was 93.19% complete as of Sept 30.
He said the project was scheduled for completion on April 12 next year, following two extensions of time due to delays in handing over construction sites and obtaining design approvals involving the Malaysian Highway Authority and PLUS.
Zairil said the bypass would open to traffic after testing and commissioning, subject to road safety audit approval.
The current contract value stood at RM851.97mil, including a RM930,105 variation order for the relocation of an Indah Water Konsortium sewer, he said.
Certified work claims totalled RM695.98mil as of Aug 12, while land worth RM427.66mil had been transferred to the contractor as payment as of Dec 20, 2024.
