While more property development projects are in the pipeline, the research unit of a local bank, CIMB Research, has reportedly warned of a “significant” commercial property glut in Penang. From an Edge report:
Occupancy rates:
- Office space: 76% (the lowest in Malaysia)
- Retail space: <70% (second lowest in Malaysia)
“There appears to be a significant glut in Penang, which would worsen if more office and retail space were built.”
- Beach hotels: 63% (3rd quarter, 2009)
- George Town hotels: 68%
- Hotels outside city: 37%