This article first appeared in The Edge Malaysia Weekly on May 4, 2026 - May 10, 2026

FOUR adjoining plots of freehold land along Jalan Pangkor in Penang, with a combined area of 28,460 sq ft or 0.65 acres, have been put up for sale via a tender exercise.

Currently, there is a heritage house on the parcels, identified as Lots 2196 to 2199 and which are located about 600m from Gurney Bay. The site sits along the same stretch as the piece of land acquired by Sunway Bhd (KL:SUNWAY) earlier this year.

A land search shows that the four plots are jointly and equally owned by Cheah Tatt Giap and Cheang Ban Tong. Market sources say the owners had previously explored plans to develop a four- to five-star hotel with around 400 rooms on the site, but have now opted to divest the land.

The exclusive marketing agent for the sale, The Roof Realty, said the tender exercise will run until May 20. According to its associate leader and partner Paul Lim, the indicative asking price is about RM1,250 psf, translating to roughly RM35 million.

However, local property agents have pointed out to The Edge that the land’s triangular configuration may pose challenges for development, potentially affecting its valuation.

“For comparison, a nearby plot was transacted last year at about RM800 psf, and that was a more regular-shaped site,” said one agent. “Given the constraints, a more realistic price for this parcel of land could be in the range of RM750 to RM800 psf, or about RM21 million to RM23 million.”

In January, Sunway, via wholly-owned subsidiary Sunway Bintang Sdn Bhd, acquired a 1.05-acre freehold parcel nearby for RM61.45 million, or about RM1,344 psf. The group plans to develop a tourism-oriented mixed-use project with an estimated gross development value of RM274 million. The site is about 500m from Gurney Bay and benefits from proximity to key retail and healthcare amenities.

Elsewhere in the vicinity, about a three-minute drive away is a 2.32-acre freehold plot along Kelawai Road that was reportedly sold in January for RM130 million, or RM1,287 psf. The land had belonged to the estate of the late Penang tycoon Cheah Leong Keah and was acquired by property developer Sevenco Sdn Bhd.

Meanwhile, market attention has also turned to larger parcels near the Gurney waterfront. A 26-acre reclaimed site close to Gurney Plaza and Andaman island has been offered at around RM1.6 billion or RM1,400 psf, although market observers suggest a more achievable range of RM900 to RM1,000 psf.

Separately, The Edge reported in March that Sunway is eyeing a 60-acre parcel on Andaman, part of a major reclamation project off Gurney Drive. The asking price is reportedly around RM1,000 psf, higher than the RM800 psf for the Westin Hotel and Residences site in the same area.

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