KUALA LUMPUR (Nov 22): The ban on short-term rental in Penang has resulted in an increase in property values and rental yields, according to Eastern & Oriental Bhd (E&O).

E&O executive chairman Datuk Tee Eng Ho said the group's property development in Penang was never intended to be marketed as an investment play.

"Whichever condominium without Airbnb, their property price goes up, rental even much better," he told reporters and analysts at E&O's 2QFY2024 results briefing on Wednesday.

"Our [development in] Andaman Island, we never targeted it for people to do Airbnb," Tee added.

Tee was referring to the Andaman Island development, an artificial island off the Northeast coast of Penang that is set to be launched in the first quarter of 2024.

Effective May 25 this year, the state government of Penang imposed a ban on almost all types of short-stay accommodation, making it the first state in Malaysia to impose such a ban.

Excluded from the ban are six types of commercial properties: serviced apartments, small office home offices (SoHo), small office flexible offices (SoFo), small office virtual offices (SoVo), office suites and duplex offices.

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