Homebuyers are swarming to purchase new properties in Penang's high-growth Bayan Lepas due to several significant developments there, including the Bayan Lepas light rapid transit (LRT) project.
According to the Penang Transport Master Plan (PTMP), the Bayan Lepas LRT will have 23 stations and a 26.8 kilometer (km) length. It will link George Town to the Penang International Airport (PIA) and the Bayan Lepas Free Economic Zone in the southeast of Penang Island.
A new Mitsui Outlet Mall, a joint venture between Mitsui Fudosan Co Ltd and Malaysia Airport Holdings Bhd is also being planned as part of PIA's expansion.
The other significant development is Intel Corporation's RM30 billion expansion over the following 10 years in the Bayan Lepas Industrial Park.
With the addition of advanced packaging capabilities to Intel's operation in Malaysia, the investment focuses on the growth of Intel's assembly test manufacturing and the building out of die preparation capability, which is expected to result in the creation of over 4,000 new job opportunities.
When the LRT line is completed, traffic congestion will be significantly reduced, said a senior consultant who is acquainted with Penang's public infrastructure and real estate development activities.
"The LRT line is intended to improve connectivity between the highly congested Penang island and the mainland by moving people. Residential properties in Penang are anticipated to appreciate due to improved accessibility. Additionally, Penang housing developments will likely rise," he told NST Property.
He said the Penang property market is expected to continue its gradual recovery phase from the pandemic-induced slowdown.
The years 2021 and 2022 were favourable for purchasing real estate in Penang due to the Home Ownership Campaign (HOC), historically low-interest rates, and developer incentives like freebies, discounts, and refunds to move inventory.
But going forward, the market is expected to experience some difficulties in 2023 as a result of rising building material and labour costs as well as the 1% Overnight Policy Rate (OPR) rise in 2022.
Despite these difficulties, he said, Penang's real estate market is anticipated to experience thrilling times in the future thanks to an increase in infrastructure projects and building launches.
He said thousands of jobs will be created as a result of the PTMP's announced infrastructure projects, Intel's RM30 billion investment in Bayan Lepas, and other major developments throughout Penang, which will also increase demand for real estate.
According to the 2022 Property Market Report launched last month, there were 243,190 transactions for residential properties worth RM94.28 billion recorded in 2022 in the whole of Malaysia, an increase of 22.3 per cent in volume and 22.6 per cent in value year-on-year, supported by the uptrend recorded in Penang (31.1 per cent), Johor (24.3 per cent, Perak (18.9 per cent), Kuala Lumpur (18.4 per cent), and Selangor (15.9 per cent).
The commercial property segment registered 32,809 transactions worth RM32.61 billion in 2022, a growth of 46.3 per cent in volume and 16.7 per cent in value compared to 2021.
Sunway Property obtained a non-bumi residential unit take-up rate of 89 per cent and a non-bumi commercial shop take-up rate of 100 per cent for its most recent property launch in Bayan Baru, called Sunway Dora.
Sunway Dora comprises 156 residential units and 22 commercial shops, with a gross development value of RM128 million.
The success of the project is attributed to its location, which is 2km from Bayan Lepas Industrial Zone, 3km from Tun Dr. Lim Chong Eu Expressway, 5km from Penang International Airport, 6km from Second Penang Bridge, and 7km from Penang Bridge.
It is also located close to the world's first hybrid solar-powered MICE and sports venue, SPICE Arena (800 metres), and the Bukit Jambul Golf and Country Club (3km) offering a multitude of recreational facilities.
Sunway Property Penang general manager Fong Choon Fuoi said homebuyers and investors view Sunway Dora's strategic location and green living amenities as a great investment that takes full advantage of Bayan Baru's rise as Penang's new economic hotspot with the Bayan Lepas LRT track and Intel Corporation's RM30 billion expansion in the Bayan Lepas Industrial Park.
There is also the rise of business services and outsourcing activities within the area as exemplified by the nearby Mayang Global Business Service Centre and Mahsuri Global Business Service Centre, he said.
As Penang's industrial hub, Bayan Baru is expected to develop faster and become a thriving township, creating jobs and attracting more foreign direct investments, Fong said.