Penang Industrial Property Market Report: 2024 Overview

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Introduction

This report provides an overview of the industrial property market in Penang for the year 2024. The analysis is based on data extracted from two key publications by the National Property Information Centre (NAPIC): the Northern Region Property Market Report 2024 (NAPIC 2024a) and the Property Market Report 2024 (NAPIC 2024b). The objective is to summarize market activity, supply and construction trends, pricing, and relevant infrastructure impacts specific to Penang’s industrial sector within the broader national context.

Market Activity and Transactions

The national industrial property sector demonstrated notable strengthening in 2024, underpinned by robust growth in market activities (NAPIC, 2024b, p. 28). (Note on Citations: All page numbers cited in this report, for example (NAPIC, 2024b, p. 28), refer to the page numbers printed on the report pages themselves and not the sequential page number displayed by the PDF viewing software.)
Nationally, 8,783 industrial transactions occurred, valued at RM27.86 billion. This represents a year-on-year increase of 7.7% in volume and 16.4% in value (NAPIC, 2024b, p. 28). This upward trend was supported by strategic policy initiatives, including the New Industrial Master Plan 2030 (NIMP 2030) (NAPIC, 2024b, p. 28).

Focusing on Penang, the state recorded 500 industrial property transactions during 2024, with a cumulative value of RM1.76 billion (NAPIC, 2024b, p. 29, Chart 42).

Several significant transactions involving industrial properties in Penang were noted between 2023 and 2024 (NAPIC, 2024a, p. 4, Table 1).

• A detached factory located on Jalan Perusahaan, Seberang Perai Tengah, was transacted in 2023 for RM66,790,000
• Another detached factory, situated on Jalan Kikik 7, Seberang Perai Utara, changed hands in 2024 for RM61,495,000
• A vacant industrial plot measuring 43,250 square meters on Jalan Perindustrian Valdor 1, Seberang Perai Selatan, was sold in 2023 for RM60,520,000

Supply and Construction

As of the close of 2024, the existing stock of industrial units in Penang numbered 9,953 (NAPIC, 2024b, p. 54, Table XVIII). The Completion was 98 units while the incoming supply pipeline included 226 industrial units designated for Penang. There were 140 units for Starts. However, no new industrial units were recorded in the planned supply phase for Penang during this period.

Nationally, construction activity within the industrial sector was described as minimal (NAPIC, 2024b, p. 30). While the Starts for industrial units saw a national increase of 26.2% to 1,013 units, Completion declined by 8.1% to 580 units and New Planned Supply figures declined by 19.7% to 1,102 units compared to the previous year (NAPIC, 2024b, p. 30, Chart 45).

Market Status: Unsold Inventory

The Unsold Inventory situation for industrial properties in Penang was as follows in 2024 (NAPIC, 2024b., p.60, Table XXIV)

• Unsold Completed: There were 26 units reported in Penang for the year
• Unsold Under Construction: No industrial units remained unsold while under construction in Penang
• Unsold Not Constructed: There were no unsold industrial units where construction had not yet commenced in Penang

This contrasts positively with the national trend, where although the overall Unsold Completed decreased from 808 units in 2023 to 705 units in 2024, Unsold units Under Construction increased from 457 to 801 units and Unsold Not Constructed increased from 22 to 202 (NAPIC, 2024b, p. 60, Table XXIV).

Industrial Property Prices

The national industrial property market remained robust in 2024, with price increments observed in select locations (NAPIC, 2024b, p. 31). This upward trend was partially linked to growing demand for warehousing and storage facilities, driven by the expansion of data centres and e-commerce activities, particularly noted in Johor and Selangor (NAPIC, 2024b, p. 31).

In Penang, specifically Seberang Perai Tengah, one-and-a-half storey terraced factories experienced slight upward price movements exceeding 3.5%. Transaction prices for these properties fell within the range of RM838,000 to RM1.17 million (NAPIC, 2024b, p. 31). Additionally, price appreciation was observed nationally for one-and-a-half storey semi-detached factories located in major states (NAPIC, 2024b, p. 31).

Infrastructure and Development Impact

Several large-scale development projects are poised to influence Penang’s industrial landscape (NAPIC, 2024a, p. 18):

• Batu Kawan Industrial Park (BKIP) 3: Located in Seberang Perai Selatan, this significant industrial park spans 622.61 acres and has an associated development cost of RM2.2 billion. Key allocations within the park include 339 acres designated for industrial use and 67.6 acres for logistics hubs. The projected completion date for BKIP3 is 2031.
• Penang Infrastructure Projects: Ongoing major infrastructure initiatives within Penang, such as the Mutiara Line LRT, the expansion of the Penang International Airport (PIA), and the Juru-Sungai Dua Elevated Highway, are expected to enhance connectivity and logistical efficiency, indirectly benefiting the industrial sector.

Contact Us

Email me at tenghuat@interealtor.com for a copy of the original source documents or if you have any needs related to buying, selling, or leasing your factory, warehouse, or land in Penang.

References

National Property Information Centre. (2024a). Northern region property market report 2024. Valuation and Property Services Department, Ministry of Finance.

National Property Information Centre. (2024b). Property market report 2024. Valuation and Property Services Department, Ministry of Finance.

Disclaimer

While every effort has been made to ensure the accuracy and reliability of the information presented in this report, which is based on the referenced sources, the author assumes no responsibility or liability for any errors or omissions in the content. The information is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness, or timeliness, and without any warranties of any kind whatsoever, express or implied. The author will not be liable for any losses, injuries, or damages arising from the display or use of this information.