Ark Resources Holdings Bhd (ARK) is acquiring three adjoining parcels of vacant leasehold land on Pulau Jerejak, for RM28 million cash, marking a strategic landbanking move that could pave the way for a future mixed-use development.

The land, currently owned by Boustead Penang Shipyard Sdn Bhd, spans a combined 26.5 acres, on the southeastern side of Pulau Jerejak. The site sits near the Bayan Lepas coastline, positioned between the Penang Bridge and Sultan Abdul Halim Mu’adzam Shah Bridge (Penang 2nd Bridge), with current access via the Seagate jetty followed by an approximately 4km boat ride.

Historically, the land was used for shipbuilding, ship repair, offshore structure works and warehousing, but has remained vacant since June 2024 after the cessation of shipyard-related activities. The site still carries industrial and shipyard-specific land conditions, which ARK plans to formally convert as part of the acquisition conditions.

According to ARK’s announcement, the acquisition is being undertaken via its wholly owned subsidiary Karya Koperat Sdn Bhd, with the primary objective of expanding its landbank for future development opportunities in Penang. While no specific development concept has been finalised at this stage, the company said it intends to apply for the rezoning of the land from “industrial strictly for shipyard purposes” to residential, commercial and/or industrial use, effectively opening the door for a much broader development potential.

The transaction is expected to be completed by the third quarter of 2027, subject to approvals from shareholders, land authorities, zoning conversion, and state consent for the transfer.

ViResidence is a serviced residence component located within Savantia Valley in Bandar Cassia, Batu Kawan. The project sits along Jalan Tun Abdullah Ahmad Badawi, one of the main arterial roads in the township, and is diagonally opposite Design Village Outlet Mall. The surrounding area forms part of the broader Batu Kawan growth corridor, which includes the Batu Kawan Industrial Park, Aspen Vision City, and various residential and commercial developments that have gradually shaped the township into a secondary urban centre on Penang’s mainland.

The project comprises two towers, each rising 29 storeys and built on top of a nine-storey parking podium. Block A and Block B together offer a total of 514 serviced residence units, with each floor accommodating 10 units. The development also incorporates a dedicated level for communal facilities and recreational spaces.

The units are offered in two built-up sizes, approximately 1,000 sq.ft. and 1,250 sq.ft., and each unit comes with two allocated car park bays within the podium levels. Planned facilities include a swimming pool, gymnasium, and shared recreational areas. The indicative starting price starts from around RM550,000 onwards.

Project Name : ViResidence
Location : Bandar Cassia, Batu Kawan
Property Type : Mixed development
Land Tenure: (to be confirmed)
Built-up Size: 1,000 sq.ft. & 1,250 sq.ft.
Total Units: 514
Indicative Price: RM550,000 onwards
Developer : Green Camour Property Sdn. Bhd.

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider or party in question.

Homebuyers and investors may soon face higher property prices as Malaysia’s construction sector braces for a possible sharp rise in building costs, driven by prolonged geopolitical tensions in the Middle East. Industry experts warn that if the conflict persists, construction costs could surge by as much as 30% to 40%, placing further pressure on an already challenging housing market.

According to industry observers, the impact stems largely from escalating fuel prices and ongoing supply chain disruptions, which directly affect the cost of essential building materials such as steel, cement, sand, and reinforcement bars. These materials make up a substantial portion of development costs, and any prolonged increase is likely to eventually be reflected in selling prices, especially for new launches and higher-end developments.

While some developers may attempt to absorb part of the increase to remain competitive, sustained cost pressure leaves little room to fully shield buyers from rising prices. Affordable housing projects may continue to see some level of price protection due to policy intervention and regulatory controls, but commercial and premium residential segments are expected to be more vulnerable to price adjustments.

Beyond materials, developers are also dealing with rising logistics expenses, labour costs, financing pressure, and uncertainty in project budgeting. The volatility in shipping routes and raw material pricing has made it increasingly difficult to provide accurate cost projections during the planning stage, potentially leading to delays, cost overruns, and deferred launches.

For Penang’s property market, the implications could be especially relevant given the state’s active pipeline of high-rise residential, industrial, and mixed-use developments that depend heavily on imported materials and efficient logistics. Projects in key growth corridors such as Bayan Lepas, Batu Kawan, and the island’s northern coastal belt may feel the effects more noticeably should supply disruptions worsen.

To manage the situation, experts suggest that developers adopt more cost-efficient construction methods such as IBS, optimise project designs, and strengthen procurement planning. At the policy level, faster approvals, targeted incentives, and efforts to reinforce local supply chains may help cushion the impact and keep future housing supply relatively stable.

A new serviced residence development has been proposed on a 3.78-acre land parcel in Bayan Lepas, situated next to SMJK Heng Ee and Havana Beach Residences. The site is located about 2km from Penang International Airport and within an estimated 10-minute walk to the future Sungai Tiram LRT station.

The proposed development consists of a 43-storey skyscraper featuring three towers built on top of a seven-level podium. Tower A1 will house 379 units, Tower A2 with 386 units, and Tower B with 133 units, bringing the total to 898 units. The podium will incorporate retail and office spaces on parts of Levels 1 and 2, alongside multi-level car parking up to Level 6, while Level 7 is designated for recreational facilities.

The project is currently pending approval, with further details expected to be released upon its official launch.

Project Name : (to be confirmed)
Location : Bayan Lepas
Property Type : Serviced residence
Tenure: (to be confirmed)
Land Area: 3.78 acres
Built-up Size: (to be confirmed)
Total Units : 898
Indicative Price : (to be confirmed)
Developer : (Follow us to find out more)

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

Penang has announced a targeted reduction in annual land charges for a group of landowners affected by steep increases under the state’s revised quit rent structure, offering welcome relief to owners of older land titles used for business and industrial purposes. The decision, announced by Chief Minister Chow Kon Yeow, follows mounting complaints from affected owners whose bills rose sharply after the state-wide rate revision.

The revised rates will now be set at 70 sen per sq m for urban land and 50 sen per sq m for rural land, specifically benefiting older titles that are being used for business and industrial activities without formal planning approval. This category includes land occupied by temporary structures, storage depots, lorry parking areas and similar uses. According to the state, more than 800 such cases have been identified so far.

Previously, some of these plots were charged significantly higher rates, with business land assessed at RM2.80 to RM3.25 per sq m, while industrial land was charged RM3.25 per sq m. The latest revision is expected to substantially reduce the financial burden on affected owners, particularly those holding legacy titles that may not reflect present-day land use realities.

However, Chow clarified that these landowners will not be eligible for the separate 50% rebate extended to most other landowners this year, noting that the state aims to strike a balance between easing the burden and maintaining a fair tax framework.

The quit rent issue has remained a closely watched topic in Penang’s property market, with over 4,000 appeals received, of which more than 3,000 are still under review. The latest move is likely to be seen as a pragmatic step towards addressing long-standing concerns, especially among owners of older commercial and industrial plots across the state.