THE creation of 25 new townships in Penang is likely to tilt the property market upwards as up to 394,000 land and strata title owners would see their properties reclassified from rural to urban.
The move from January, next year, would likely see an appreciation of property prices, especially in the acute land shortage state like Penang.
In one sweeping move under the National Land Code (Act 828) under Section 11(ca) and 11 (d), a total 394,000 land and strata title owners would be reclassified from rural dwellings/occupation to urban status.
Chief Minister Chow Kon Yeow, who announced this sweeping move told a press conference that Penang will now have 42 townships, including from the colonial era of George Town and Butterworth - two of the earliest settlements in Malaysia.
However, quit rent for both land and strata title owners would also need to be revised from rural to urban, which means that affected ratepayers, would likely need to pay more.
Chow said that he would conduct a separate briefing to explain the quit rent adjustments.
But in view of concerns over rising living costs, Penang would defer the payment for the new rates from next year to 2027 for strata title holders.
However, the rest including landed house owners, would need to pay the new rates from next year.
The 10 expanded townships are Bayan Lepas, Balik Pulau, Batu Ferringhi, Tanjong Bungah, George Town, Bukit Mertajam, Sungai Bakap, Nibong Tebal, Kepala Batas and Butterworth.
Another seven remained in status quo as townships - they are Tanjong Tokong, Jelutong, Bukit Bendera, Air Itam, Prai, Gelugor and Tanjong Pinang (Karpal Singh Drive).
The new townships are Bayan Baru, Batu Maung, Sungai Ara, Silicon Island, Bukit Jambul, Puncak Penara, Perdana Mutiara, Pinang Emamai, Alma, Bukit Minyak, Bukit Tengah, Bandar Perda, Seberang Jaya, Jawi, Bandar Cassia, Simpang Ampat, Bandar Tasek Mutiara, Sungai Dua, Teluk Air Tawar, Bertam, Tasek Gelugor, Pokok Sena and Ara Kuda.
State Exco for tourism and creative economy, Wong Hon Wai said property value may appreciate in view of the reclassification of status from rural to urban.
This would augur well for the real estate sector, he added. – September 19, 2025
