Penang land auction attracts no bidders
The six-acre plot carries a reserve price of RM313.632 million, with sale proceeds intended to help complete the Ayer Itam road bypass.
An auction of Penang state government land intended to raise money for the delayed Ayer Itam road bypass ended without any bidders, The Edge reported, citing people familiar with the matter. The state has not decided whether to hold another auction, they said.
Staff from auction agent One Asia Property Consultants (PG) Sdn Bhd closed proceedings after waiting an hour for prospective bidders. The six-acre site, designated Plot 7A in Tanjung Pinang Town, is on Jalan Peter Paul Dason, the road connecting Gurney Drive and Andaman Island.
The reserve price is RM313.632 million, equivalent to RM1,200 per square feet. The Edge reported that vacant plots nearby were fetching more than RM1,000 per square feet, while a soft property market and uncertainty about the site's plot ratio for mixed development contributed to the lack of bidders.
The bypass will connect Ayer Itam to Tun Dr Lim Chong Eu Highway. Work was over 90% complete at the end of August, but financing difficulties and site logistics have delayed construction.
Under the project's land-swap funding arrangement, the builder receives land against claims for completed work instead of cash. Contractor Consortium Zenith Construction Sdn Bhd asked the state to help turn the land into cash to support cash flow and ensure completion by April 2027.
