Penang’s rising horizon: E&O’s RM60 billion Andaman project moves from homes to hubs

[PENANG] From a blank stretch of reclaimed seabed to a rising island off Penang’s northern coast, Andaman Island is moving into its next phase – to become a lifestyle and business hub.

With its first residents due to move in this year after Eastern & Oriental’s (E&O) maiden project is handed over, the Bursa Malaysia-listed developer is lining up commercial components for the new island beside Gurney Drive – Penang’s best-known seafront promenade.

Gurney Drive is one of Penang Island’s most visited destinations, prized not only by tourists but also by homebuyers and property investors as one of the northern state’s most sought-after addresses.

That appeal has spilled over into Andaman Island, which sits adjacent to the promenade and is directly linked via two bridges – Andaman Bridge connecting Seri Tanjung Pinang near Straits Quay, and the newly opened Gurney Bridge directly connecting Gurney Drive.

“Housing alone does not create a destination,” said E&O managing director Kok Tuck Cheong in an interview with The Business Times after the opening of the Gurney Bridge in December last year.

“Commercial, hospitality, public spaces and the future marina are essential in shaping Andaman Island as a place. These elements create vibrancy, extend activity beyond residential use and build emotional attachment,” he said, adding that several plans are now underway, pending the authorities’ approval.

The company’s Annual Report 2025 said that E&O launched five residential projects with a total gross development value of nearly RM2.8 billion (S$900 million).

While entry prices for Andaman Island's 2021 debut, The Meg, started at about RM500,000, subsequent launches have moved firmly into seven-figure territory. Newer developments are now priced in the multimillion-ringgit range, reflecting the island's rapid appreciation and upscale positioning.

Vaunted high-end living

Take-up has remained steady.

• The Lume (seafront condo): Launched in July 2024, this low-density, 49-storey tower has already achieved a 72 per cent take-up rate. It features 261 units (only six per floor) with prices starting from RM2.2 million.
• Senna and Fera (landed): The island’s first landed development saw exceptional demand, with all 69 units sold within six months of its launch in the fourth quarter of 2024. Its recent release of 68 units in Q2 2025 is priced from RM3.7 million for Fera terrace homes and RM4.8 million for Senna semi-detached homes.
• Maris (beachfront serviced apartments): Unveiled in December 2024, this 49-storey tower is around 62 per cent sold. The project anchors a waterfront promenade lined with cafes, restaurants and boutique retail, with units priced between RM950,000 and RM2 million.
• Avea (upcoming): The next phase features two 51-storey serviced apartment towers with 1,080 fully furnished units ranging from 678 to 1,076 sq ft. Estimated pricing ranges from RM683,000 to RM1.7 million.

Current listings indicate that average property prices on Andaman Island align with Gurney Drive’s RM900 to RM1,000 per square foot range. However, Andaman Island prices typically skew towards the upper end of that bracket, reflecting its newer building stock and prime waterfront positioning.

Property consultancy firm CBRE | WTW (Penang) director Tan Chean Hwa observed that Andaman Island is emerging as an up-and-coming destination for both local and overseas buyers.

“For locals who can afford it, the appeal lies in the overall concept and lifestyle offering. Quality landscaping, amenities within walking distance and a more integrated master plan are key draws,” he told BT.

For foreign buyers, he noted that most units at Andaman Island are priced over RM1 million – comfortably above Penang’s minimum purchase threshold for non-residents – while still comparatively attractive against residential prices in markets such as Hong Kong and Singapore.

IFC catalyst

E&O has proposed to host the RM10 billion Penang International Financial Centre (PIFC) on Andaman Island.

PIFC is a high-profile project that aims to make the state more vibrant and expand its reputation beyond just being Malaysia’s semiconductor hub. The plan, however, remains at a preliminary stage. Penang Chief Minister Chow Kon Yeow has clarified that the PIFC remains in the discussion phase between the Penang government and federal regulators.

Andaman Island faces competition from several other proposed sites, including Batu Kawan, Gurney Bay and others, as the state evaluates the best location for the 40-hectare (ha) PIFC.

E&O, a premier Malaysian luxury developer, traces its legacy to the historic Eastern & Oriental Hotel founded in 1885. In 2005, the group consolidated its property arm and, in 2021, transitioned to a new leadership when the Tee family – founders of Malaysian-listed Kerjaya Prospek – acquired a controlling stake, aligning the developer with construction expertise.

The mid-cap developer is best-known for premium, seafront and city-centre developments in Penang, Kuala Lumpur and London. Its portfolio is also anchored by recurring income from flagship hospitality assets including the Eastern & Oriental Hotel and Lone Pine in Penang.

Beyond Penang and the Klang Valley, E&O’s footprint extends to Johor with Avira, a wellness-themed residential enclave in Bandar Medini Iskandar.

Avira was developed via a 50:50 joint venture between E&O and Pulau Indah Ventures (a partnership between Malaysia’s sovereign wealth fund Khazanah Nasional and Singapore investment company Temasek), with the master plan carrying a total estimated gross development value of around RM3.5 billion.

Bridging Gurney Drive

The newly opened Gurney Bridge is the second bridge linking Andaman Island to George Town, complementing the Andaman Bridge, which was completed in 2022. The new bridge connects Seri Tanjung Pinang near Straits Quay to the island.

The Gurney Bridge spans about 1.2 km – just slightly longer than the Johor-Singapore Causeway – and provides an eight-lane link from Gurney Drive, designed to ease traffic flows while offering waterfront access via wide pedestrian walkways.

At the bridge opening ceremony, Chow described the 307-ha Andaman development as one of the most ambitious township projects on the island, adding that a third bridge linking Andaman Island to Tanjung Tokong is expected to be unveiled next year.

Phase two of Andaman Island, which still has about 204 ha of land to be reclaimed, is progressing, with reclamation works previously guided to be completed by 2028.

Andaman Island is a 30-year development with an estimated gross development value of about RM60 billion, placing it among Malaysia’s largest private township projects.