Penang is pushing forward with Batu Kawan as its next major growth corridor, backed by strong infrastructure and over 35,000 affordable homes. While residential supply is rising, industrial demand remains solid. PropertyMart is optimistic, as strong job creation and growing communities continue to drive sustainable opportunities in Penang's property market.
Penang is focusing on Batu Kawan as its next major industrial growth hub, with the Batu Kawan Industrial Park (BKIP) at the centre. The area benefits from strong connectivity via the Second Penang Bridge and the North-South Expressway, making it a natural extension of the established Bayan Lepas industrial zone.
According to Kenanga, Batu Kawan is expected to accommodate around 250,000 residents by 2036, supported by 45,000 to 50,000 housing units.
Growth momentum increased in December 2024 with a Joint Development Agreement between the Penang Development Corporation (PDC), PDC Properties and SKYWLD (NR) under the Rumah Bakat Baru MADANI initiative. The project is expected to deliver over 35,000 affordable homes, including Rumah Mampu Milik units, priced between RM225,000 and RM420,000.
To support local buyers, 50% of the units will be reserved for Penang-registered voters, while the rest will be open to others.
Beyond Batu Kawan, industrial growth is also expanding into nearby areas such as Kulim Hi-Tech Park in Kedah, about 25km from Prai, which continues to play an important role in the northern semiconductor and manufacturing ecosystem.
While most developments focus on housing demand driven by industrial growth on the mainland, efforts are also being made to improve homeownership opportunities on Penang Island, where land is limited.
Data from National Property Information Centre (NAPIC) shows that Penang has one of the lowest levels of excess industrial inventory among major states, indicating strong demand. Other states like Johor and Selangor are also seeing steady improvements in supply and demand balance.
Overall, this shows that housing supply is becoming more aligned with economic activity and population growth. Meanwhile, Sabah and Sarawak have higher industrial stock, possibly preparing ahead for future investments.
However, Penang still faces a residential overhang, with more than 16,500 unsold units as of December 2025, including serviced apartments. This does not yet include upcoming large-scale projects like Rumah Bakat Baru MADANI, which plans to add another 30,000 homes over the next 10 years.
In addition, Andaman Island’s long-term plan to house up to 250,000 people over the next 30 years suggests a steady supply of around 2,000 new homes annually.
Kenanga noted that while there may be some oversupply risk if job growth does not keep up, landed properties are expected to remain more stable due to limited supply compared to high-rise units.
On the industrial side, demand remains strong, while land supply is released more gradually. Developers focusing on industrial projects and landed housing are likely to benefit more from Penang’s growth.
PropertyMart Market Perspective
From PropertyMart’s view, this trend highlights a clear shift, where developments backed by real industrial growth, job creation and infrastructure (like Batu Kawan) are more likely to perform well. While high-rise oversupply remains a concern, well-located landed homes and projects within strong economic zones are expected to see more sustainable demand and long-term value growth.
Whether you're buying for your own stay or as an investment, opportunities remain abundant. Landed homes continue to hold strong appeal, while affordable housing options are making homeownership more accessible. At PropertyMart, we believe Penang is on the right track and we're here to help you be part of it.
Source: Focus Malaysia
