What is the average price per sqm in Penang?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Penang. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Malaysian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Kuala Lumpur, Penang, and Johor Bahru. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the average price per square meter right now in Penang?

As of September 2025, Penang property prices average RM11,111 per square meter for city center condominiums and RM7,920 per square meter for apartments outside the center.

The overall average residential property price across all types in Penang currently stands at RM475,037 per unit. This figure represents a significant increase from previous years, reflecting the strong demand and limited supply in this popular Malaysian destination.

City center locations command premium prices due to their proximity to heritage sites, business districts, and urban amenities. George Town, being a UNESCO World Heritage site, particularly drives up property values in central areas.

Outside the city center, properties offer better value while still providing good connectivity to urban areas. These locations are particularly attractive for families and first-time buyers seeking more affordable entry points into the Penang property market.

It's something we develop in our Malaysia property pack.

How do prices differ between condos, landed houses, and luxury villas?

Property prices in Penang vary significantly depending on the type of property you choose, with condominiums, landed houses, and luxury villas each occupying different price segments.

Condominiums in city centers average RM11,111 per square meter, while those outside the center cost around RM7,920 per square meter. These apartments offer the most accessible entry point for many buyers, particularly those seeking modern amenities and security features.

Landed houses on the mainland, particularly in areas like Seberang Perai and Batu Kawan, range from RM225,000 to RM420,000 for complete properties. However, landed houses in prime city areas can command prices between RM800,000 and RM2,000,000, depending on size and location.

Luxury villas represent the premium segment, typically starting above RM2,000,000 for prime island locations. Waterfront properties and those with heritage significance command even higher premiums, often exceeding RM3,000,000 for the most exclusive addresses.

The price per square meter generally decreases as property size increases for landed houses due to economies of scale in land and construction costs.

Which neighborhoods are the most expensive, which are more affordable, and which are up-and-coming?

Neighborhood Category	Areas	Price Range (RM)
Most Expensive	George Town, Pulau Tikus	800,000 - 3,000,000+
Premium Waterfront	Tanjung Tokong, Gurney Drive	600,000 - 2,500,000
Mid-Range Urban	Bayan Baru, Bayan Lepas	400,000 - 1,200,000
Affordable Family Areas	Sungai Ara, Relau	350,000 - 800,000
Most Affordable	Batu Kawan, Seberang Perai	225,000 - 420,000
Up-and-Coming	Bandar Cassia, Seberang Jaya	250,000 - 500,000

How do prices vary depending on the size of the property or the surface area?

Property pricing in Penang follows predictable patterns based on size, with smaller units commanding higher prices per square meter but lower total purchase prices.

Smaller condominiums typically have higher price per square meter rates due to their efficiency and convenience, making them particularly attractive to young professionals and investors seeking rental yields. The premium for compact living is especially pronounced in city center locations.

As property size increases, particularly for landed houses, the price per square meter generally decreases due to economies of scale in construction and land development. Larger plots benefit from reduced infrastructure costs per unit area.

However, luxury properties buck this trend, as premium features, exclusive locations, and bespoke designs can maintain or even increase the price per square meter regardless of size. Waterfront villas and heritage properties command premiums that override typical size-based pricing.

The sweet spot for value often lies in medium-sized properties between 1,000 and 1,500 square feet, which balance affordability with livability for most families.

What's the typical total purchase price including fees, taxes, and other transaction costs?

Total property purchase costs in Penang extend significantly beyond the listed price, with additional fees and taxes adding 5% to 8% to your final investment.

Cost Component	Rate/Amount	Notes
Stamp Duty	1%-4% (tiered)	3% on properties above RM500,000
Legal Fees	0.5%-1%	Conveyancing and documentation
Valuation & Agent Fees	1%-3% combined	Property assessment and commission
RPGT (future sale)	0%-30%	Based on holding period and residency
Quit Rent (annual)	RM0.03-0.05/sqft/year	Government land tax
Assessment Tax (annual)	~6% of annual rental value	Municipal services tax

What are the ongoing costs such as maintenance fees, property taxes, and utilities?

Ongoing ownership costs in Penang vary significantly between property types, with condominiums requiring higher monthly maintenance fees but offering more comprehensive services.

Condominium maintenance fees range from RM0.30 to RM0.80 per square foot per month (RM3.20 to RM8.60 per square meter monthly), depending on facilities and building quality. Higher-end developments with pools, gyms, and security services command premium maintenance rates.

Additionally, condominium owners must contribute to a sinking fund equal to 10% of the monthly maintenance fee, which covers major repairs and replacements over time.

Utility costs typically range from RM200 to RM400 monthly for moderate usage, covering electricity, water, and internet services. Air conditioning usage significantly impacts electricity bills in Penang's tropical climate.

Property insurance costs between RM300 and RM1,200 annually, depending on property type, value, and coverage level. Landed house owners also face annual quit rent of approximately RM60 to RM90 for mid-sized homes.

What are mortgage rates like in Malaysia right now, and what would financing look like for a property in Penang?

As of September 2025, Malaysian home loan interest rates range from 3.5% to 4.5% per year, with an indicative lending rate of 4.55% for housing loans.

Banks typically approve mortgages based on income multiples, with the current price-to-income ratio averaging 10.4 in Penang. Mortgage payments should generally not exceed 70% to 80% of monthly income for approval.

For comparison, fixed deposit rates currently offer 3.25% to 3.75% returns, making property investment margins relatively attractive for leveraged purchases. The spread between borrowing costs and potential rental yields creates favorable conditions for investors.

Foreign buyers face additional restrictions, including minimum purchase prices of RM1 million for most properties, though some states may have different thresholds. Documentation requirements are more stringent for non-residents.

It's something we develop in our Malaysia property pack.

What are some concrete examples of actual purchase prices in different areas?

Real market examples from September 2025 demonstrate the wide price variation across Penang's different neighborhoods and property types.

In Bandar Cassia, a developing mainland suburb, new condominiums ranging from 900 to 1,100 square feet sell for RM270,000 to RM400,000. These properties offer excellent value for first-time buyers and investors seeking affordable entry points.

George Town luxury condominiums, such as those in the prestigious 8 Gurney development, command RM1,300,000 to RM2,500,000 for units between 1,500 and 3,000 square feet. These properties offer heritage charm and premium urban amenities.

Pulau Tikus bungalows represent the luxury segment, with prices starting from RM2,000,000 and reaching RM3,500,000 or higher for premium locations and larger plots.

Mid-tier options in Bayan Baru offer 1,000 to 1,400 square foot condominiums for RM650,000 to RM850,000, providing good balance between affordability and modern amenities. Seberang Perai launched terrace houses offer 1,400 square feet for approximately RM385,000.

If you want to live in Penang yourself, what are the smartest options today?

The smartest residential choices in Penang depend on your lifestyle priorities, family situation, and budget constraints, with different areas offering distinct advantages.

Families with local connections should consider Sungai Ara, Relau, or Batu Kawan, which offer affordable pricing, new infrastructure development, and access to decent schools. These areas provide excellent value for long-term residents seeking community integration.

Expatriate retirees and lifestyle-focused buyers benefit most from George Town and Gurney Drive locations, which offer walkability, heritage charm, cultural amenities, and established expatriate communities. The premium pricing reflects superior lifestyle benefits.

Investors seeking dual-purpose properties should focus on Seberang Jaya, Batu Kawan, and Bayan Lepas, which combine affordable entry prices with strong growth potential due to ongoing infrastructure development and industrial expansion.

Young professionals and couples often find optimal value in newer condominium developments in Bayan Baru or Tanjung Tokong, which balance modern amenities with reasonable commuting distances to major employment centers.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malaysia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

If you want to rent it out, how do short-term rentals compare to long-term rentals in terms of return?

Rental yield strategies in Penang vary significantly between short-term and long-term approaches, with each offering distinct advantages and challenges.

Long-term rental yields in Georgetown average 3.3% to 4.2% gross annually, providing stable income with minimal management requirements. These yields are particularly reliable in established neighborhoods with consistent tenant demand.

Short-term rentals through platforms like Airbnb can achieve 7% to 10% gross returns in prime tourist zones, particularly heritage areas and beachfront locations. However, these higher gross yields come with increased management costs, higher vacancy risks, and seasonal fluctuations.

Net returns for short-term rentals typically settle at 4% to 6% after accounting for cleaning, maintenance, platform fees, and higher utility costs. The premium diminishes when considering the additional time and effort required for management.

Mainland and less central locations show lower demand for short-term rentals, with yields closer to 3%, making long-term rental strategies more practical for these areas. Tourism concentration heavily favors island locations for short-term success.

If you want to resell later, what areas or property types have the best potential for price growth?

Future capital appreciation potential in Penang varies significantly by location and property type, with certain segments showing stronger growth prospects than others.

1. **Prime heritage properties in George Town** offer the strongest appreciation potential due to limited supply and UNESCO protection status2. **Waterfront condominiums** in established areas benefit from scarcity value and lifestyle premiums3. **Emerging mainland developments** in Batu Kawan and Seberang Jaya provide growth potential from infrastructure improvements4. **Green-certified modern developments** appeal to environmentally conscious buyers and future regulations5. **Properties near planned LRT stations** will benefit from improved connectivity and urban development

Tanjung Tokong luxury condominiums face oversupply risks that could limit short-term appreciation, making careful project selection crucial in this area.

Infrastructure developments, particularly the planned Penang LRT system and Penang2030 initiatives, will significantly influence future property values, especially for properties with improved connectivity.

It's something we develop in our Malaysia property pack.

How have prices changed compared to one year ago and five years ago, and what's the forecast for one year, five years, and ten years ahead, especially compared to other similar cities?

Penang property prices have experienced significant growth over recent years, with the high-end segment leading appreciation trends across the market.

Over the past year, Penang property prices increased 7% to 10% in the high-end segment, with an overall market rise of 5.8%. This growth reflects strong demand from both local upgraders and international buyers seeking Southeast Asian property exposure.

The five-year trend shows approximately 20% to 30% overall price increases, with the strongest performance in city center luxury condominiums and heritage properties. This growth significantly outpaced inflation and most other asset classes.

Forecasts suggest steady annual growth of 3% to 5% through 2030, driven by urbanization trends, infrastructure development, and the electronics sector expansion. By 2035, Penang Island luxury and heritage properties may approach price parity with Kuala Lumpur equivalents.

Compared to regional cities, Penang ranks as the second most expensive property market in Southeast Asia after Singapore, but offers better value than Hong Kong or many Australian cities. The combination of affordability and growth potential positions Penang favorably for long-term investors.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Numbeo Cost of Living Penang
2. Numbeo Property Investment Penang
3. Global Property Guide Malaysia Price History
4. BambooRoutes Penang Property Price Trend
5. EdgeProp Penang Residential
6. BambooRoutes Penang Price Forecasts
7. BambooRoutes Malaysia Property Taxes
8. Housing Watch Malaysia Foreign Buyer Guide
9. Expatistan Georgetown Penang Cost of Living
10. BambooRoutes Penang Real Estate Market