KUALA LUMPUR (Jan 25): Despite the global consolidation of operations and restructuring exercise by multinational companies (MNCs) in Penang, such as those involving Seagate Technology Inc, Western Digital Corp and Intel Corp, the industrial property sector in Penang has fared quite well over 2016.
“Investments [into Penang] by new companies and expansion by existing industrialists had continued unabated. New investments that are coming in include Boston Scientific Malaysia, Bosch, Inari Technology Sdn Bhd and others,” said CBRE|WTW Penang director Peh Seng Yee at the launch of the consultancy firm’s “2017 Asia Pacific Real Estate Market Outlook: Malaysia” report on Jan 18.
“The Batu Kawan Industrial Park has been gaining momentum with more industrial sites being acquired and manufacturing facilities being constructed and completed,” said Peh.
According to him, the consolidation and restructuring activities by MNCs will continue in the near future, but as the state and federal governments are seeking high-quality manufacturing investment, the outlook for Penang’s industrial property sector remains positive.
Meanwhile, the hotel sector in Penang is expected to be healthy in 2017 as well as it expects a higher influx of local and foreign tourists.
Peh noted that there are more notable hotel developments on both the mainland and on the island such as DoubleTree Resort by Hilton Penang, Angsana Teluk Bahang, Courtyard by Marriott and Holiday Inn & Suites.
The total supply of hotel rooms in Penang is 11,725 rooms across 44 hotels with Penang island making up 87% of total supply.
As for the retail sector, about five million sq ft of retail space is expected to enter the market over the next three to five years, according to Peh.
“Retail malls with strong tenant mix and situated in strategic locations, coupled with large catchment population will continue to thrive.
“On the other hand, aged malls are likely to see a dip in occupancy as tenants may relocate upon tenancy expiration,” he said.
The total supply of retail space in Penang stands at 18.54 million sq ft with up to 63% of total supply from the island. The overall occupancy rate for retail malls in Penang is about 72%.
The occupancy rate for retail malls on Penang island and on the mainland is about 80% and 60% respectively.