GEORGE TOWN – Penang’s developers need to prepare for a rebound in the construction sector as demand is expected to surge again and be palpable by 2024.
Property developer IJM Land Bhd is preparing for this wave with sustainability as a key facet in its projects.
Having gained prominence as the developer of the Tun Dr Lim Chong Eu Expressway, which was built on reclaimed land, the company has reaffirmed its commitment to proceed with the project it has secured in the state.
It has announced through its subsidiary IJM Perennial Development Sdn Bhd that plans to enter the second phase of its flagship The Light City mixed development project has begun.
In an interview, IJM Perennial’s general manager Tan Hun Beng shared the company’s vision that Penang continues to be resilient despite the Covid-19 pandemic and its dire economic consequences.
On the state’s real estate outlook, Tan said that there may be an oversupply in some areas, but this is largely due to mismatch rather than a property overhang.
“There are certainly demands for certain types of property. We at IJM recognise this,” he said.
He said that buyers and investors alike must be advised to select locations of strategic value, and purchase units within their affordable range to avoid speculation.
On the Covid-19 pandemic, Tan stressed that people are social animals and despite the huge strides done in digitalisation, there is still a need to meet in person.
Hence, the developer made the decision to move ahead with the state’s largest convention hall.
It is expected to help transform Penang’s tourism fortunes from reliance on beach and heritage to gastronomy and business events through the meetings, incentives, conventions, and exhibitions concept.
“It will be three times larger than the present Spice Arena with a seating capacity of 8,000 and ability to hold banquets for 5,000 people,” he said
A shopping mall also remains in demand despite the rising use of e-shopping as the human touch is considered essential in making choices, particularly for branded products and personal attire, including shoes and apparel, Tan pointed out.
Notwithstanding the pandemic, over time people in general will still come to Penang as will investors seeking good returns, Tan said.
Citing the Klang Valley, Singapore, and Hong Kong as examples, he said that despite the high density and crowds, there are plenty of jobs and progress there. The situation is similar in Penang.
Only by improving the quality of life through good housing, infrastructure, connectivity, and social amenities to complement good jobs, can a state retain its talents and prevent a mass exodus of workers, said Tan.
IJM also sees Penang moving up the value chain through its niche in manufacturing, and with it comes a renewed commitment for real estate, he added.
“We also see the economy as a springboard. It will bounce back after a period of suppression due to Covid-19. It is just a matter of time until it recovers.” – The Vibes, November 18, 2021
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