By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 10 November 2026
A six-acre state land parcel near Gurney Drive drew no bidders at auction, at a reserve price of RM313.6 million, or about RM1,200 per square foot. Chief Minister Chow Kon Yeow said on 2 November 2026 that the failed auction will not affect the Air Itam–Tun Dr Lim Chong Eu Expressway project it was meant to help fund.
The auction at a glance
| Item | Details |
|---|---|
| Land | About six acres, PT858 (Plot 7A), Section 2, Bandar Tanjung Pinang, North-East District, near Gurney Drive |
| Reserve price | RM313.632 million |
| Price per sq ft | About RM1,200 |
| Advertised | 7 September 2026 |
| Result | No bidders |
Why the land was auctioned
The auction was held at the request of Consortium Zenith Construction Sdn Bhd (CZC), which needed cash flow to finance the remaining works on Package 2 of the Air Itam–Tun Dr Lim Chong Eu Expressway under a land-swap arrangement. Any surplus would have been shared between the state and the company.
Chow said the reserve price was based on the existing agreement and on land along Jalan Pangkor transacting at about RM1,200 psf. He said he was not in a position to speculate on prevailing land prices.
What happens next
- Chow said the company is no longer facing cash-flow problems and can complete the remaining works. The state has received no request for a second auction.
- Any further action on the land is up to the State Authority, and the proceeds of any new auction would depend on the selling price.
- The expressway is more than 95% complete. The remaining works, including street furniture, are expected to finish by April 2027, followed by a JKR road safety audit before it opens.
What it means for the Gurney and Tanjung Tokong area
RM1,200 psf for raw land is a high benchmark, and the lack of bidders suggests developers were not ready to pay that much for a large site at this time. That does not set a new price for homes in the area, but it is a useful signal about land values. Buyers in Gurney and Tanjung Tokong can still choose from several projects nearby, and Air Itam residents will benefit once the expressway opens.
| Project | Area | Indicative price | Completion |
|---|---|---|---|
| The Crown | Tanjung Tokong | From RM704,000 | 2029 |
| Eight & Eight | Tanjung Tokong | From RM691,628 | 2029 |
| City of Dreams | Tanjung Tokong | RM1,535,800–RM3,256,400 | Completed |
| Tuan Pavilion | Air Itam | From RM730,000 | Q2 2027 |
Frequently asked questions
How much was the Gurney Drive land?
The reserve price was RM313.632 million for about six acres, or roughly RM1,200 psf.
Will the Air Itam expressway be delayed?
The Chief Minister said no. It is more than 95% complete, with remaining works expected by April 2027.
Will the land be auctioned again?
No second auction has been requested. Any further action is up to the State Authority.
Looking at Gurney or Tanjung Tokong?
I can send the latest price lists for projects around Gurney, Tanjung Tokong and Air Itam. WhatsApp or call +60 10-313 9113.
Sources
- Buletin Mutiara: Failed RM313.6mil Gurney Drive land auction will not affect expressway project, says CM Chow
- The Edge Malaysia: Penang state land auction draws a blank, sources say
This article is general information based on published reports as of 10 November 2026. It is not investment or valuation advice; project prices are indicative and depend on availability.