By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 25 October 2026
The Air Itam–Tun Dr Lim Chong Eu Expressway bypass is now 93% complete, and the remaining works are targeted to finish in April 2027. Paya Terubong assemblyman Wong Hon Wai gave the update in early October 2026 after the project’s 60th monthly progress meeting.
The 6 km toll-free road will give Air Itam, Farlim and Paya Terubong a direct route to the Tun Dr Lim Chong Eu Expressway and on to both Penang bridges, without passing through George Town. Here is the route, what is left to build, how the project is funded, and what it means for homes in the area.
The bypass at a glance
| Item | Details |
|---|---|
| Route | Lebuhraya Thean Teik in Farlim to the Tun Dr Lim Chong Eu Expressway |
| Length | About 6 km dual carriageway, toll-free |
| Structure | Elevated viaducts, tunnels and ground-level roads |
| Cost | About RM850 million (state government, July 2026) |
| Part of | Package 2 of the Penang undersea tunnel and paired roads project |
| Contractor | Consortium Zenith Construction Sdn Bhd (CZC) |
| Construction started | February 2021 |
| Progress | 93% (early October 2026) |
| Target completion | April 2027 (12 April 2027 under the latest extension); the original target was 2024 |
| Residents served | About 300,000 people in Air Itam, Bandar Baru Air Itam and Paya Terubong |
Progress in 2026
| Date | Progress | Source of update |
|---|---|---|
| 15 June 2026 | 91.8% physical completion | State infrastructure committee chairman Zairil Khir Johari |
| 15 July 2026 | All four 147–152 tonne beams for Bridge 4, Span 1 installed | State government |
| 31 August 2026 | 92.46% physical, 81.69% financial | State government |
| Early October 2026 | 93%; deck slab at the Farlim end completed | Wong Hon Wai, Paya Terubong assemblyman |
What is still being built
- Farlim end: work on the parapets and the reinforced earth (RE) wall near Lintang Angsana.
- Lintang Angsana widening: road widening to support the RE wall started recently and was expected to continue through October. It may affect Rapid Penang buses, which have less room to turn; any route changes will be announced by Rapid Penang.
- Approvals and utilities: the team is waiting for Malaysian Highway Authority (LLM) approval of a proposed left-in, left-out junction, and Indah Water Konsortium pipes near the Farlim viaduct still need to be relocated.
- Before opening: government agencies will carry out a road safety audit, and the Public Works Department (JKR) will then set the opening date.
How the bypass is funded
The state does not pay the contractor in cash. Instead, CZC receives state land at Gurney Bay in exchange for completed work, which is why the road can be toll-free.
- CZC has claimed about RM696 million in completed works. About 12 acres worth RM427.7 million have been transferred, and land worth RM225.8 million is still due.
- To help CZC raise cash, the state put up a six-acre plot beside Gurney Bay and Andaman Island (Plot 7A, Bandar Tanjung Pinang) for auction on 7 October 2026, with a reserve price of RM313.6 million (RM1,200 psf). The auction drew no bidders.
- Zairil said the failed auction will not affect the bypass, because the major works are done and CZC has assured the state it has enough resources. CZC can now sell the land privately or ask for another auction.
What it means for property in Air Itam, Farlim and Paya Terubong
Today, traffic from Air Itam and Paya Terubong to the expressway, the bridges and the Bayan Lepas industrial zone has to squeeze through Jalan Air Itam, Green Lane or Jalan Bukit Gambir. Once the bypass opens, these neighbourhoods get a direct link to the island’s east coast, which should shorten daily commutes and make the area easier to rent out to people working in Bayan Lepas, Gelugor and on the mainland.
Keep the timeline realistic. Completion is targeted for April 2027, but the opening date depends on the safety audit and JKR, and the project has already been extended twice. Buy for the homes and amenities the area has today, and treat the bypass as an added benefit.
New launches near the bypass
| Project | Area | Indicative price | Completion |
|---|---|---|---|
| D’Hazelton | Farlim · Jalan Bukit Kukus | RM450,000–RM500,000 | 2029 |
| The Skyline | Paya Terubong | RM361,650–RM1,159,900 | 2029 |
| Pinnacle Bukit Gambier | Gelugor · Bukit Gambir | RM780,800–RM1,289,800 | March 2030 |
| The Fount | Batu Uban | RM843,000–RM1,203,000 | 2030 |
| Triuni Residences | Batu Uban | From RM875,700 | Completed |
| The Lighthauz | Gelugor waterfront | From RM864,500 | September 2030 |
D’Hazelton consists of PN1 and PN4 affordable units, so buyers must meet the state’s eligibility rules. Browse more projects on our Paya Terubong, Farlim and Gelugor pages, and check your budget with the mortgage calculator.
Frequently asked questions
When will the Air Itam bypass open?
Completion is targeted for April 2027. After construction, a road safety audit is required and JKR will set the opening date, so the road may open some time after the works are finished.
How far along is the Air Itam bypass?
About 93% complete as of early October 2026, up from 92.46% at the end of August 2026.
Is the Air Itam bypass a toll road?
No. The 6 km road is toll-free. The contractor is paid with state land at Gurney Bay instead of tolls.
Where does the bypass start and end?
It runs from Lebuhraya Thean Teik in Farlim to the Tun Dr Lim Chong Eu Expressway, using viaducts, tunnels and ground-level roads.
Looking at homes in Air Itam, Farlim or Paya Terubong?
I can send the latest price lists and unit availability for projects near the bypass. WhatsApp or call +60 10-313 9113.
Sources
- Newswav: Ayer Itam bypass reaches 93% completion
- The Star: Air Itam bypass reaches 91.8% completion after major bridge milestone
- EdgeProp: Penang to auction six-acre land to raise funds to complete Ayer Itam bypass
- The Star: RM313mil price tag shock?
- The Vibes: Penang infrastructure projects gather pace as airport expansion and Air Itam bypass stay on track
This article is general information based on state government statements and published reports as of 25 October 2026. Construction timelines and opening dates may change. It is not investment advice; project prices are indicative and depend on availability.