Despite talk of the possibility of a property glut in Penang, most developers are still optimistic that demand is still there though not as red hot as 2010 due to several factors, not least the weak market sentiments in Europe and the US. 

For 2H 2011 and 2012, the estimated gross development value (GDV) for planned launches in Penang is in the region of RM4.4 bil, comprising largely of residential projects in both the island and the mainland. Some of the big time developers from KL are SP Setia Bhd, Sunway City Bhd, Mah Sing Group Bhd and IJM Land Berhad.

KL big boys

SP Setia has RM1.13 bil GDV of residential properties lined up from November 2011 comprising of a RM180mil commercial precinct for Setia Pearl Island, the RM62mil 11 Brook Residences, a RM175mil condominium in Sungai Nibong, the RM412mil Setia V Residences in Jalan Kelawei and the RM302mil Setia Greens Phase 2 in Sungai Ara.

This will be followed by launches in 2Q 2012, which include the Setia Greens Phase 2, the condominium in Sungai Nibong, and Setia V Residences, a luxurious condominium in Jalan Kelawei.

Mah Sing Group, another big boy from KL, will also be launching different phases of their projects worth an estimated GDV of RM1.6bil on various prime locations on about 95 acres on the island.

Meanwhile, Sunway City will be launching the Sunway Hill Residence on an 81-acre site in Sungai Ara, construction of which will start from 2012 through to 2017. The RM1bil project comprises of 600 units of landed properties and condominiums.

IJM Land, which has a 325-acre (130ha) landbank on the island, including 153 acres on reclaimed land will be launching a RM400mil project in Bukit Mertajam consisting of cluster and terrace houses by end 2011. One of the biggest developers in Penang, IJM Land is expected to complete the reclamation of 103 acres by end 2012 for the development of a RM5bil mixed development project, expected to be completed within 10 years’ time.

Penang developers

Penang-based developers are just as ambitious, and even more so, with E & O’s RM12bil , Phase 2 of the Seri Tanjung Pinang  project involving  740 acres of to-be reclaimed land in Tanjung Tokong being the talk of town.

Ivory Properties Bhd is no stranger to reclamation as it is reclaiming 35 acres to add to its recent acquisition of the 67.56 acres of Bayan Mutiara land in Bayan Baru for a mixed development scheme with an estimated GDV of RM10bil.

Another reclamation project is the 100-acre site in front of Queensbay Mall by Boustead Holdings Bhd.

Leading Penang supermarket group Suiwah Corporation Bhd is presently involved in a RM1bil mixed development project on 3.64ha site within the Farlim township at Bandar Baru Air Itam. There are also unconfirmed reports that it has plans to build a mega mall in Penang, estimated to be the size of the hugely popular Mid Valley Megamall in KL.

Other smaller developers with plans for new launches include Lone Pine Group of Companies, MTT Properties and Development Sdn Bhd, Asas Dunia Bhd and DNP Land Sdn Bhd.