Authored by the expert who managed and guided the team behind the Malaysia Property Pack
Everything you need to know before buying real estate is included in our Malaysia Property Pack
As of September 2025, Penang's property market offers diverse investment opportunities with median condo prices around RM580,000 and landed houses averaging RM475,000-RM486,000. The island remains Malaysia's third most expensive property market, with prime areas like George Town and Gurney Drive commanding premium prices while the mainland provides more affordable alternatives with strong growth potential.
If you want to go deeper, you can check our pack of documents related to the real estate market in Malaysia, based on reliable facts and data, not opinions or rumors.
Penang property prices range from RM225,000 for affordable housing on the mainland to over RM3 million for luxury properties on the island. Current market conditions show steady growth with 7-10% annual increases in prime areas.
The total cost of buying property includes various fees and taxes that add approximately 5-7% to the purchase price, while mortgage rates average around 3.9% annually for 30-year loans.
| Property Type | Price Range | Location | Per Sq Ft |
|---|---|---|---|
| Affordable Housing | RM225,000 - RM300,000 | Mainland | RM350 - RM450 |
| Standard Condos | RM350,000 - RM800,000 | Suburban Areas | RM509 - RM735 |
| Landed Houses | RM475,000 - RM486,000 | State Average | RM400 - RM600 |
| Prime Condos | RM1,000,000+ | George Town/Gurney | RM1,032 - RM1,200 |
| Luxury Properties | RM1,800,000+ | Batu Ferringhi/Pulau Tikus | RM1,200+ |
| Heritage Properties | RM2,000,000+ | George Town Core | Varies |
| Seafront Luxury | RM3,000,000+ | Tanjung Bungah | RM1,500+ |
What are the current average property prices in Penang by property type?
As of September 2025, the Penang property market shows distinct pricing tiers across different property types.
Condominiums represent the largest segment with a median price of RM580,000 statewide. In prime city center locations such as George Town and Gurney Drive, condos command between RM794,000 to RM1,200,000, with an average price per square foot of RM1,032. These premium units typically offer modern amenities and strategic locations near business districts and transportation hubs.
Landed houses average between RM475,000 to RM486,000 across Penang state. Entry-level terrace homes on the mainland can be found at lower price points, while established neighborhoods on the island command higher premiums. The variation depends heavily on location, age of the property, and land size.
Luxury properties consistently exceed RM1 million, with many premium developments in areas like Pulau Tikus, Tanjung Bungah, and Seri Tanjung Pinang reaching well above this threshold. New luxury condominiums in Batu Ferringhi start from RM1.8 million and can extend significantly higher for seafront units.
Affordable housing options remain available, particularly on the mainland, ranging from RM225,000 to RM300,000, while island-based affordable units typically start around RM300,000.
How do property prices vary across different neighborhoods and districts?
Property prices in Penang show significant variation based on location, with the island commanding premium rates compared to the mainland.
George Town, as the historic city center and UNESCO World Heritage site, represents the most expensive area with condos typically priced above RM1,000,000 and an average of RM1,032 per square foot. Landed luxury properties in this area can range from RM1.5 million to over RM3 million, driven by heritage value and central location.
Gurney Drive stands out as another premium location with condos averaging RM1,100 per square foot and starting from RM1.5 million. This area has shown the highest capital appreciation rates due to its waterfront location and established infrastructure. Luxury landed properties in this vicinity typically exceed RM2 million.
Pulau Tikus maintains its position as a classical luxury neighborhood with properties ranging from RM1.2 million to over RM5 million for condos, while luxury landed houses start above RM2 million. The area's historical significance and proximity to premium amenities justify these price levels.
The mainland areas including Batu Kawan and Seberang Perai offer more affordable options with condos priced between RM300,000 to RM500,000 and landed houses ranging from RM400,000 to RM600,000. These areas are experiencing rapid growth due to new township developments and improved connectivity.
It's something we develop in our Malaysia property pack.
What are the price ranges based on property size and surface area?
Property pricing in Penang correlates directly with size, with clear price brackets across different square footage categories.
For condominiums, the statewide average ranges from RM418 to RM631 per square foot. Entry-level units between 800 to 1,200 square feet typically cost RM350,000 to RM800,000, making them attractive to first-time buyers and young professionals. Mid-range units from 1,200 to 1,500 square feet usually fall in the RM500,000 to RM1.2 million range.
Large luxury condominium units spanning 1,500 to 2,500 square feet command prices from RM1.5 million to over RM3 million, particularly in prime locations. These units often feature premium finishes, multiple bedrooms, and panoramic views that justify the higher per-square-foot rates.
Landed houses typically feature built-up areas between 1,400 to 2,500 square feet, with prices ranging from RM480,000 to over RM2 million depending on location, age, and frontage. Corner lots and houses with larger land areas command significant premiums, especially in established neighborhoods.
Smaller affordable housing units, typically 600 to 900 square feet, are available from RM225,000 on the mainland, offering entry points for budget-conscious buyers.
What is the total cost of buying property including all fees and taxes?
The total cost of purchasing property in Penang extends well beyond the listed price, with additional fees and taxes adding approximately 5-7% to the final purchase cost.
| Cost Component | Rate/Amount | Example (RM800,000 property) |
|---|---|---|
| Stamp Duty | 1-4% (tiered) | RM19,000 |
| Legal Fees | 0.5-1% | RM6,000 |
| Valuation Fee | 0.25% | RM2,000 |
| Agent Fee | Max 3% | RM24,000 |
| Miscellaneous | Various | RM3,000 |
| Total Additional | 6.75% | RM54,000 |
| Total Purchase Cost | - | RM854,000 |
Ongoing costs include assessment tax at approximately 5-6% of annual rental value, quit rent around RM0.03-0.05 per square foot annually, and strata management fees for condominiums ranging from RM0.20-0.40 per square foot monthly.
Foreign buyers face additional restrictions with minimum purchase thresholds of RM3 million for island properties and RM1 million for mainland properties. Real Property Gains Tax applies if the property is sold within five years, ranging from 5-30% depending on the holding period.
Don't lose money on your property in Penang
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How do current mortgage rates and financing options affect property affordability?
Current mortgage financing in Penang remains relatively accessible with competitive interest rates supporting property purchases.
As of August 2025, typical housing loan rates range from 2.88% to 4.22% per annum, with an average effective rate of approximately 3.9% for 30-year loans. Banks offer maximum tenure periods of 35 years, allowing buyers to extend repayment periods for lower monthly installments.
Loan-to-value ratios may be reduced for second properties or foreign buyers, typically requiring higher down payments. Malaysian citizens can often secure up to 90% financing for their first property purchase, while subsequent properties may require 70-80% down payments.
For a typical RM800,000 property with 90% financing at 3.9% interest over 30 years, monthly repayments would be approximately RM3,390. This calculation helps buyers assess affordability based on the common guideline that housing costs should not exceed 30% of gross monthly income.
Current market conditions favor buyers with stable employment and good credit histories, as banks maintain competitive lending standards while offering various financing packages including Islamic banking options for Shariah-compliant purchases.
Which areas offer the best value across different budget categories?
Penang's property market can be segmented into distinct categories based on price points and investment potential.
The most expensive areas include George Town Core, Pulau Tikus, Gurney Drive, and Tanjung Bungah. These locations command premium prices due to heritage value, waterfront access, established infrastructure, and proximity to business districts. Properties in these areas typically appreciate faster but require significant initial investment.
Up-and-coming areas showing strong growth potential include Batu Kawan, Air Itam, Jelutong, and Gelugor. Batu Kawan particularly stands out as a new township on the mainland with modern infrastructure and growing connectivity. These areas offer better entry prices while positioning buyers for future appreciation as development progresses.
Budget-friendly options are primarily found on the mainland in Seberang Perai, Balik Pulau, and parts of Bukit Mertajam. These areas provide affordable entry points for first-time buyers and investors seeking rental yield opportunities. While appreciation may be slower, rental demand remains steady due to proximity to industrial areas and educational institutions.
The upcoming LRT corridor areas present unique opportunities for strategic buyers, as properties along the planned route are expected to experience significant appreciation once the transportation system becomes operational.
Can you provide specific examples of recent property transactions?
Recent transaction data from September 2025 provides concrete examples of current market pricing across different segments.
A luxury seafront condominium in Batu Ferringhi recently sold for RM1.8 million for a 1,750 square foot unit, representing approximately RM1,029 per square foot. This transaction reflects the premium commanded by beachfront properties with resort-style amenities and unobstructed sea views.
In the mid-range segment, a new condominium development in Butterworth achieved sales of RM550,000 for units exceeding 1,000 square feet. This pricing demonstrates the growing appeal of mainland properties offering modern amenities at more accessible price points.
Affordable housing transactions on the mainland continue to close between RM225,000 to RM300,000, primarily targeting young families and first-time buyers. These units typically range from 600 to 900 square feet and offer basic amenities with community facilities.
A notable heritage transaction involved a historic pre-war terraced house block in Pulau Tikus with an aggregate asking price of RM300 million for multiple properties, highlighting the significant premium placed on heritage properties in prime locations.
Standard landed house transactions in suburban areas typically range from RM480,000 to RM850,000 depending on location, size, and condition, with newer developments commanding higher premiums.
How have property prices changed over recent years?
Penang's property market has demonstrated consistent growth over the past five years, with varying rates across different segments and locations.
Over the past year, prime and luxury segments have experienced growth of 7-10%, while the overall market showed a more modest increase of 0.9% in Q1 2025. This disparity reflects strong demand for high-end properties while the mass market remains more stable.
The five-year trend shows more dramatic appreciation, with average property values roughly doubling over a 10-year period. Prime city center and beachfront areas have experienced compound growth of 50-80%, particularly in established neighborhoods like George Town and Gurney Drive.
Mainland properties have shown accelerated growth recently due to infrastructure improvements and new township developments. Areas like Batu Kawan have experienced significant appreciation as connectivity improves and commercial development expands.
The heritage property segment has shown exceptional performance, driven by scarcity and international recognition of George Town's UNESCO status. These properties have consistently outperformed the broader market, though they require significant maintenance investments.
It's something we develop in our Malaysia property pack.
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.
What are the forecasts for property prices in the coming years?
Property price forecasts for Penang indicate continued moderate growth through 2030, with infrastructure development playing a key role in driving appreciation.
Short-term forecasts for 2026 suggest annual growth of 3-5% for quality properties, with stronger performance expected in prime locations and areas benefiting from new infrastructure. The upcoming LRT system is expected to significantly impact properties along the corridor, potentially driving 8-12% annual appreciation in these areas.
Medium-term projections through 2030 anticipate steady growth averaging 4-6% annually for established areas, while emerging townships like Batu Kawan may experience higher growth rates of 6-8% as development matures and connectivity improves.
Long-term forecasts through 2035 remain positive, supported by Penang's position as a key economic hub in Malaysia and continued tourism growth. Heritage properties are expected to maintain premium appreciation due to their scarcity and international appeal.
Market analysts emphasize that growth will likely concentrate in areas with strong fundamentals including transportation access, employment opportunities, and quality amenities. Properties in secondary locations may experience more modest appreciation aligned with general economic growth.
How do Penang property prices compare with other regional cities?
Penang's property market positioning within the regional context shows competitive pricing compared to other major cities in Southeast Asia.
Within Malaysia, Penang properties average RM475,000-RM486,000 compared to Kuala Lumpur's average of RM794,467 in 2025. This positions Penang as more affordable than the capital while offering similar urban amenities and economic opportunities. Johor averages RM437,280, making it slightly more affordable than Penang across most segments.
Regionally, Penang offers significantly better value than Singapore, Bangkok, or Hong Kong for comparable city center and luxury properties. While these cities command higher absolute prices, Penang provides similar lifestyle benefits and investment potential at more accessible price points.
The island's unique combination of heritage value, modern infrastructure, and strategic location creates a compelling value proposition for both local and international buyers. Properties that would cost millions in Singapore or Hong Kong are available at substantially lower prices in Penang while offering similar amenities and quality of life.
Rental yields in Penang also compare favorably with regional cities, typically ranging from 4-6% annually depending on location and property type, which is competitive with other major Southeast Asian markets.
What are the best property options for different investment strategies?
Different investment objectives require tailored property selection strategies based on specific goals and risk tolerance.
Owner-occupiers should focus on modern condominiums along the planned LRT corridor or landed houses in stable neighborhoods. These properties offer good lifestyle benefits while maintaining steady appreciation potential. Areas like Gelugor, Air Itam, and select mainland developments provide excellent value for primary residence purchases.
Short-term rental and Airbnb investors should target city center studios and one-bedroom units near George Town or beachfront properties in Batu Ferringhi. These locations attract tourists and business travelers, supporting higher rental rates and occupancy levels. Properties with unique heritage features or sea views command premium short-term rental rates.
Long-term rental yield strategies work best with family-sized condominiums on the mainland or near universities and industrial areas. These properties attract stable tenants including expatriate families and local professionals, providing consistent rental income with lower management requirements.
Buy-to-resell investors should focus on projects adjacent to new infrastructure developments, particularly in up-and-coming townships like Batu Kawan and areas along the future LRT route. These locations offer the highest appreciation potential as development progresses and connectivity improves.
What are the smartest property investment choices in Penang right now?
Current market conditions favor several specific investment strategies that align with ongoing development trends and market fundamentals.
Luxury condominiums in Gurney Drive and Pulau Tikus represent the strongest capital appreciation opportunities. These areas have consistently outperformed the broader market and continue to attract high-net-worth individuals seeking premium properties with heritage value and modern amenities.
Mainland properties, particularly in Batu Kawan, offer the best combination of affordability and growth potential. This new township provides modern infrastructure, improving connectivity, and appeals to young families seeking value. Properties here are positioned for significant appreciation as the area matures.
Landed houses in Air Itam and Gelugor present excellent value opportunities with strong local demand and steady appreciation. These established neighborhoods offer good fundamentals while remaining more affordable than prime island locations.
Heritage properties in George Town, while requiring higher initial investment and maintenance costs, offer unique positioning due to their scarcity and international appeal. These properties benefit from UNESCO World Heritage status and growing cultural tourism.
Pre-LRT corridor properties represent the most strategic opportunity for forward-thinking investors. Units along the planned Light Rail Transit route are expected to experience significant premiums once the system becomes operational, making current purchases particularly attractive.
It's something we develop in our Malaysia property pack.
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.
Penang's property market in September 2025 offers compelling opportunities across different price segments and investment strategies.
Strategic buyers focusing on infrastructure-linked areas, heritage properties, and emerging townships are positioned to benefit from the market's continued evolution and growth trajectory.