Monday, 19 Oct 2026 · Singapore Property news across the Asia-Pacific
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Kampung Manis redevelopment: 227 families offered replacement housing, 174 free homes

A total of 227 families affected by the Kampung Manis redevelopment in Perai have been offered replacement housing. Penang state officials said 174 families still living on site will receive free 850 sq ft homes, while 53 families with ties to the settlement can buy RM150,000 units under a rent-to-o

Kampung Manis redevelopment: 227 families offered replacement housing, 174 free homes
Image: Kuala Lumpur skyline. File photo: Slyronit / CC BY-SA 4.0 · Wikimedia Commons

BUTTERWORTH (Oct 19): A total of 227 families affected by the proposed redevelopment of Kampung Manis in Perai have been offered replacement housing, comprising free homes for 174 families and RM150,000 units under a rent-to-own scheme for another 53, Bernama reported.

Penang Housing and Environment Committee chairman Datuk Seri S Sundarajoo said the 174 families still living on the site would receive the free homes, while the other 53 families have ties to Kampung Manis but are not permanent residents of the settlement. Each replacement home for the resident families would measure 850 sq ft and be provided at no cost in exchange for their existing homes, Sundarajoo said at a ceremony on Oct 18, Buletin Mutiara reported. Residents required to move out temporarily during construction would receive RM700 a month in rental assistance from the developer until their new homes were completed, he added.

Site-vacation consent documents from the Railway Assets Corporation (RAC) and Penang Housing Board (LPNPP) were presented at the ceremony at the Chai Leng Park multipurpose hall. Sundarajoo said construction was expected to begin towards the end of 2026 or early 2027, subject to the necessary development-plan approvals. The developer had been given 24 months from approval of the building plans to complete the replacement housing, Bernama reported.

The proposed Rumah MutiaraKu (RMKu) housing component covers approximately 3.97 acres on parts of Lots 286, 65 and 67 in Bandar Perai, Central Seberang Perai district. It is planned to comprise 338 residential units, with facilities including a swimming pool and car park, Buletin Mutiara reported. The housing site forms part of a larger proposed mixed-use redevelopment on RAC land.

Singapore-listed property developer Aspen (Group) Holdings Ltd said in a June 11 announcement that its associate, Rivanis Ventures Sdn Bhd, had signed a definitive agreement with RAC covering approximately 34.839 acres in Perai. The agreement envisages development in phases over an estimated seven years, comprising at least 338 affordable homes, the relocation of existing occupiers and other residential and commercial units. Aspen put RAC’s estimated entitlement under the agreement at RM156.49 million, comprising RM54.1 million in cash and RM102.39 million for the affordable homes and associated temporary relocation costs.

The filing also provides for Aspen Vision Development Sdn Bhd and construction group Kerjaya Prospek Group Bhd to give RAC a joint and several corporate guarantee covering monies payable by Rivanis Ventures to RAC and the timely completion of the 338 affordable homes in accordance with the agreement. The June announcement said the agreement was subject to conditions precedent, including approval of the master plan and conversion of the land’s zoning category for mixed development.

Meanwhile, Chief Minister Chow Kon Yeow said nearly two years had been spent resolving outstanding matters and securing a developer after the signing of a memorandum of understanding and memorandum of agreement on Nov 11, 2024. He urged the developer to expedite submissions to the Seberang Perai City Council so that the necessary approvals could be obtained and construction could begin in the coming months, Buletin Mutiara reported.

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