14 May The Edge Malaysia | Nawawi Tie Leung Property Consultants Penang Housing Monitor 4Q2024: Market sees stable performance in 4Q2024, driven by residential sector
Published by The Edge Malaysia • 23/04/2025
This article first appeared in City & Country, The Edge Malaysia Weekly on April 14, 2025 – April 20, 2025
The Penang property market was stable in the fourth quarter of 2024 (4Q2024), according to Nawawi Tie Leung Property Consultants Sdn Bhd executive director Saleha Yusoff in presenting The Edge Malaysia | Nawawi Tie Leung Property Consultants Penang Housing Monitor 4Q2024.
“In 4Q2024, the overall property market showed a stable performance compared with 3Q2024, with the overall transaction volume increasing slightly by 0.1% (3Q2024: 6,620 units). Market activity was driven by the residential sector, contributing 74% of the total transactions, although the transaction volume dropped by 1.1%,” she says.
Transactions for development and other types of land saw a notable growth of 13.4%. This reflected investor confidence in the prospects of the Penang market, owing to the various infrastructure developments that will enhance connectivity to major commercial hubs, says Saleha.
Total transaction volume saw a slight dip of 1% at 5,000 units from 5,041 units in 3Q2024. As Timur Laut has the highest supply, the district recorded the highest volume of transactions at 1,429 total units, a slight drop from 1,517 units in 3Q2024.
Saleha says transaction growth in the districts remained limited, with Seberang Perai Utara leading at 4.1%, followed by Barat Daya at 3.4% and Seberang Perai Tengah at 2.2%. Seberang Perai Selatan and Timur Laut experienced a decline of 6.9% and 5.8% respectively, which she attributes to lower transactions for flats, condominiums/apartments and terraced homes in Timur Laut and lower transactions in the terraced and semi-detached segments of Seberang Perai Selatan.
Saleha: The overall transaction volume increased by 0.1% from 3Q2024 (Photo by Low Yen Yeing / Edgeprop.my)
According to data provided by the National Property Information Centre (Napic), supply declined quarter on quarter (q-o-q). By district, Barat Daya saw a decrease of 0.77% to 93,260 and Timur Laut was down 0.93% to 198,523. Seberang Perai Utara recorded an increase of 2.06% to 94,294, with terraced houses contributing about 1,228 units (65%) of the new supply.
The total number of overhang and unsold units had increased slightly by 2% q-o-q to 13,707 units (3Q2024: 13,474 units).
The “unsold not constructed” category saw a significant drop of 86% from the previous quarter, which accounted for only 1% (194 units) of the total overhang and unsold units. As for “overhang units”, they made up about 25% of the total at 3,345 units. Overhang units are defined as residential properties that have been completed and certified for occupancy but remain unsold for more than nine months after their launch. The remaining 74% were in the “unsold under construction” category, which totalled 10,168 units.
Saleha says condominium/apartment and serviced apartments contributed the highest number of overhang and unsold properties at 8,351 and 1,035 units respectively.
“As at 4Q2024, about 49% (6,714 units) of the total overhang and unsold units were priced between RM300,000 and RM500,000, with condominium/apartment contributing 75% to this price segment. Properties between RM500,000 and RM1 million contributed about 25% (3,376 units), with the majority being condominium/apartment (1,197 units) and serviced apartment (1,150 units).”
Overall performance in 2024
The overall property market’s performance across all property types, namely residential, commercial, industrial, agricultural, and development land, was stable in 2024.
“The overall property market demonstrated stable performance, with a slight decrease of just 0.1% to 24,428 units in 2024 (2023: 24,683 units). The residential sector played a significant role, accounting for 76% of the total transactions with 18,122 units sold,” she says.
“Additionally, transactions for agricultural land increased significantly by 19% with the total value rising by 84%. About 86.1% of these transactions took place in the mainland, reflecting increased confidence in the investment market, driven by improved infrastructure surrounding these lands.”
The total transaction volume for residential properties dropped 2.9% to 18,122 in 2024 from 18,664 in 2023. By district, Seberang Perai Utara recorded the highest number of transactions (46%), followed by Seberang Perai Tengah (24%) and Seberang Perai Selatan (16%).
The supply of residential units increased by 3.07% to 579,512 units in 2024 from 562,245 units in 2023. Condominiums and apartments contributed 10,315 units (60%) to the supply, the highest among other property types, while landed homes (including terraced, semi-detached and detached units) contributed 5,685 units (33%).
Rising cost of building materials
Saleha notes that challenges in the form of rising cost of building materials have resulted in higher prices for residential properties, raising concerns about affordability among first-time homebuyers and middle-income earners.
To tackle these issues, developers have adopted several strategies including flexible pricing, early-bird discounts and attractive financing options. There was also an increased supply of affordable homes, especially in Seberang Perai, where property prices are lower and land transactions are active. Saleha points to SkyWorld Development Bhd’s (KL:SKYWLD) project as an example.
“In December 2024, Penang Development Corporation (PDC), PDC Properties and SkyWorld signed an agreement to develop the Rumah Bakat Baru Madani Scheme. This project, on 32 acres in Seberang Jaya and 161.5 acres in Batu Kawan, aims to deliver more than 35,000 affordable housing units priced between RM225,000 and RM420,000. The first phase will be launched in 2026, with full development spanning 10 years,” she says.
Despite the challenges, developers are tapping into new opportunities by launching projects near infrastructure developments and industrial areas, says Saleha.
“The approval and advancement of major infrastructure projects, such as the Penang Light Rail Transit and the Penang Silicon Island project, have significantly increased the state’s appeal to investors and homebuyers. Developers have taken advantage of these developments by launching projects in strategically located areas,” she adds.
“Penang’s thriving industrial sector attracted both foreign and domestic buyers seeking housing near workplaces. Developers responded by focusing on residential projects in mainland areas like Batu Kawan and Bukit Mertajam, close to industrial hubs such as the thriving industrial sector in Batu Kawan, particularly the Batu Kawan Industrial Park (BKIP) and its expansions like BKIP2 and BKIP3, leading to a surge in demand for housing among the growing workforce.”
Properties launched in 4Q2024
A total of 630 residential properties were launched during the quarter in review, with Seberang Perai Selatan contributing 66% or 418 units and Seberang Perai Tengah contributing the remaining 34% or 212 units. There were no new launches in Timur Laut, Barat Daya and Seberang Perai Utara.
Here are some of the notable properties launched in 4Q2024.
Singapore-based The Ascott Ltd and Instant Icon Sdn Bhd announced in October 2024 that they would develop Ascott Residences Batu Ferringhi (a premium beachfront branded residences) on a 1.1-acre freehold site along the coastal road of Jalan Batu Ferringhi.
The 49-storey development will comprise 99 units, including two-bedroom residences of 2,000 sq ft, four-bedroom residences of 4,000 sq ft and an 8,000 sq ft penthouse. Scheduled for completion in January 2028, the development will have unobstructed views of the sea and direct access to the beach.
Meanwhile, Mutiara Biopolis Developments Sdn Bhd launched mixed-use development Bayan Suite in November 2024. It is strategically located adjacent to the Tun Dr Lim Chong Eu Expressway, just a short drive from the Penang Bridge. This development will see the construction of 31-storey serviced residences, featuring 326 residential units and a 7-storey car park podium. There will be 20 shopoffices on the ground level.
In December 2024, S P Setia Bhd (KL:SPSETIA) launched the first phase of Setia Suria, a landed development in the Setia Fontaines township in Kepala Batas, Penang. The first phase will comprise 154 single-storey terraced homes with built-ups of 1,189 to 1,221 sq ft that come with three bedrooms and two bathrooms.
“Designed with a modern aesthetic, these homes are expected to attract young couples and families working in Kepala Batas and the surrounding areas. The project’s second phase, offering 179 units, is scheduled for launch in the first quarter of 2025,” says Saleha.
In October 2024, Ideal Property Group launched the 28-acre freehold light industrial park Ideal Business Hub in Penang Technology Park @ Bertam.
“Despite current market challenges, developers are tapping into new opportunities by launching projects near key infrastructure developments and industrial zones in the state. Part of Parcel 2 within the expansive 880-acre Penang Technology Park @ Bertam (PTP), the business hub aims to create a comprehensive business ecosystem, offering businesses convenient access to its supply chain network within the park,” says Saleha.
She notes that housing demand in Bertam has increased due to PTP.
“The establishment of PTP has significantly influenced the residential market in Bertam, primarily through job creation and increased economic activity. It has attracted both local and foreign companies, creating various types of employment opportunities. This influx of workers has heightened the demand for housing in Bertam as employees seek residences in proximity to their workplaces.
“With PTP attracting local and foreign firms, we believe there is rising demand from middle-income professionals seeking homes close to their workplaces, such as factory managers, engineers and skilled technicians. Also, the affordability of terraced houses in Bertam compared to Penang Island makes the area attractive to young couples and first-time buyers. The third group is property investors, who could be interested in Bertam due to the rising demand for rental properties fuelled by industrial workers and newcomers.”
As at October 2024, about 50% of the first phase of PTP had been taken up by local and international companies from diverse sectors, including semiconductor manufacturing, lithium battery production, automobile electronics, electronics assembly, medical devices, trading, and warehousing and logistics.
“Although specific data on job creation is unavailable, this strong uptake indicates a significant number of employment opportunities, contributing positively to the local economy and residential market,” says Saleha.
Another industrial project launched during the quarter was the RM1.3 billion, 176-acre Northern TechValley @ BKE Industrial Park in Kubang Semang, which will serve industries such as pharmaceutical and medical technology. A joint venture between AME Elite Consortium Bhd (KL:AME) and Majestic Gen Sdn Bhd, the project is expected to be completed by 2029.
“This development is poised to significantly influence the local residential market. The industrial park aims to attract high-value industries and is expected to generate numerous employment opportunities, leading to population growth as workers relocate to the area,” says Saleha.
“As the workforce expands, the demand for housing, particularly affordable and mid-range options, is expected to rise. This surge may drive the development of new residential projects to accommodate the growing population.”
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