How much for a property in Penang now?

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

Who is the author of this content?

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 George Town, Bayan Lepas, and Tanjung Tokong. 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 is the current average price per square foot for residential properties in Penang?

As of September 2025, residential property prices in Penang average RM1,032 per square foot for city center condominiums and RM735 per square foot for units outside the center.

The statewide median for condominium prices sits at RM514 per square foot, which represents a balanced view across all areas in Penang. City center locations command premium prices due to their proximity to business districts, shopping centers, and transportation hubs.

Luxury condominiums in prime areas like Gurney Drive and Tanjung Tokong can exceed RM1,200 per square foot, especially for units with sea views or premium amenities. These high-end properties target affluent locals and expatriate buyers who prioritize location and lifestyle.

Suburban areas offer more affordable options, with prices ranging from RM500 to RM800 per square foot depending on the specific location and property age. Areas like Bayan Lepas and Batu Maung show strong price appreciation due to their proximity to industrial and tech hubs.

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

How do property prices in Penang compare to other major cities in Malaysia?

Penang property prices position the state as a middle-tier option between Malaysia's most expensive and most affordable markets.

City	Average Property Price	Average Condo Price per Sq Ft
Kuala Lumpur	RM794,467	RM1,200+
Penang	RM475,037	RM1,032
Johor Bahru	RM437,280	RM400-800
Ipoh	RM320,000	RM350-500
Kota Kinabalu	RM380,000	RM400-650

What are the average prices for different property types in Penang?

Property prices in Penang vary significantly based on type, location, and target market segments.

Condominiums represent the most popular choice for both locals and foreigners, with city center units averaging RM1,032 per square foot and suburban units at RM735 per square foot. High-rise developments typically range from 650 to 1,500 square feet, making total prices fall between RM350,000 and RM800,000 for most units.

Terrace houses command an average price of RM466,506 nationally, but Penang's prime areas see prices ranging from RM600,000 to RM1.5 million depending on location and condition. These properties typically offer 1,200 to 2,400 square feet of living space and remain popular with Malaysian families.

Landed bungalows and semi-detached properties average RM648,403 nationally, with Penang's prime landed properties starting at RM1.8 million for foreign buyers due to government minimum purchase requirements. These properties offer the largest living spaces and often include private gardens and parking.

Budget-conscious buyers can find opportunities in areas like Air Itam, where median prices drop to RM360,000, significantly below the state average per square foot.

Which areas in Penang are experiencing the highest property price growth and which are more budget-friendly?

Penang's property market shows distinct patterns between high-growth premium areas and budget-friendly neighborhoods that offer value for money.

Gurney Drive, Tanjung Tokong, and Pulau Tikus lead the highest price growth category, with annual appreciation rates of 7-10%. These luxury areas attract expatriates and affluent locals due to their sea views, proximity to international schools, and upscale amenities. Properties in these locations command premium prices but offer strong capital appreciation potential.

Investment hotspots include Batu Maung near the airport and industrial areas, Bayan Lepas with its tech hub concentration, and Batu Ferringhi for its beach location and high rental yields from tourism. These areas benefit from infrastructure development and economic activity that drives property values upward.

Budget-friendly options concentrate in Air Itam with median prices at RM360,000, Seberang Perai on the mainland, Jelutong, Sungai Ara, and Gelugor. These areas offer significantly lower entry points while still providing access to Penang's amenities and job markets through public transportation and highway connections.

Seberang Perai particularly appeals to first-time buyers and young families seeking affordable landed properties with good growth potential as infrastructure improves across the Penang Bridge and Second Penang Bridge connections.

What are the typical sizes of properties in Penang and how does this affect overall pricing?

Property sizes in Penang follow standard Malaysian development patterns, with significant variations between property types that directly impact total purchase costs.

Condominiums and apartments typically range from 650 to 1,500 square feet for standard units, while luxury developments offer 1,200 to 2,500 square feet layouts. The price per square foot relationship means smaller units often cost more per square foot but require lower total investment, making them accessible to first-time buyers and investors.

Terrace houses and landed properties generally provide 1,200 to 2,400 square feet of living space, with bungalows offering even larger areas. These properties show lower price per square foot rates but higher total costs due to their size and land component.

The size-to-price relationship creates distinct market segments: compact condos at RM350,000-500,000 total, mid-range units at RM500,000-800,000, and luxury properties exceeding RM1 million. This structure allows buyers to choose based on budget and space requirements rather than being limited to a single price tier.

Larger properties also offer better rental income potential due to their appeal to families and long-term tenants, making them attractive for buy-to-rent investors despite higher initial investments.

What is the total cost of purchasing a property in Penang, including taxes, fees, and other costs?

Property purchase costs in Penang extend beyond the sale price, with buyers typically budgeting 5-7% of the purchase price for additional expenses.

Foreign buyers face minimum purchase requirements of RM800,000 for condominiums and RM1.8 million for landed properties on Penang island. These thresholds ensure foreign investment targets higher-value segments of the market.

Stamp duty ranges from 1-3% of the property value, calculated on a progressive scale where higher-value properties pay higher rates. Legal fees typically cost 0.4-1% of the purchase price, with additional charges for valuation fees and property searches.

Real estate agent fees, usually paid by the seller, can sometimes impact negotiations and final pricing. Buyers should also budget for property inspection costs, insurance, and immediate maintenance requirements.

Condominium buyers face ongoing maintenance fees of approximately RM0.30-0.50 per square foot monthly, plus sinking fund contributions for major repairs and upgrades. These recurring costs affect long-term affordability and should factor into purchase decisions.

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

What are the current mortgage interest rates in Penang and how do they influence affordability?

Mortgage interest rates in Malaysia, including Penang, remain stable at 3.5-3.7% per annum for residential properties as of September 2025.

These rates directly impact monthly payment calculations and overall affordability for property buyers. A typical RM500,000 loan over 30 years results in monthly payments of approximately RM2,224-2,300, making property ownership accessible to middle-income earners.

Banks typically approve loans up to 90% of property value for first-time Malaysian buyers, while foreign buyers may face stricter lending criteria and higher down payment requirements. The stable interest rate environment encourages both local and international property investment.

Current rates support buyer sentiment as no immediate rate hikes are expected, allowing purchasers to plan long-term budgets with confidence. Lower rates also boost property values by increasing affordability and demand across all market segments.

Fixed-rate options provide payment certainty for buyers concerned about rate fluctuations, though most Malaysian mortgages use variable rates tied to the Base Rate set by Bank Negara Malaysia.

What are the average rental rates for properties in Penang, and how do they vary between short-term and long-term rentals?

Rental rates in Penang show significant variation between long-term residential leases and short-term tourist accommodations.

Long-term rentals for city center condominiums range from RM2,500 to RM4,000 per month, while suburban units typically rent for RM1,500 to RM2,800 monthly. These rates reflect the steady demand from expatriate workers, local professionals, and students attending Penang's universities and international schools.

Short-term rentals, particularly in tourist areas like Batu Ferringhi, command RM200-350 per night during peak seasons. Beach-front properties and units with resort-style amenities achieve the highest nightly rates due to Penang's popularity as a tourist destination.

Georgetown properties benefit from both tourism and the growing digital nomad population, creating dual rental income opportunities for property owners. Units near heritage sites, restaurants, and cultural attractions maintain high occupancy rates throughout the year.

Rental yields typically range from 3.3-4.2% annually in prime areas, with short-term rentals potentially achieving higher returns but requiring more active management and marketing efforts.

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.

Which areas in Penang offer the best rental yields for property investors?

Penang's rental yield leaders concentrate in areas that combine tourist appeal with resident demand, creating stable income streams for property investors.

1. **Batu Ferringhi** leads rental yields due to its beach tourism appeal, achieving up to 3.33% and higher through short-term rentals during peak seasons2. **Georgetown** attracts both tourists and long-term expatriate tenants, providing consistent rental income from heritage tourism and international business presence3. **Bayan Lepas** benefits from its tech hub status, drawing professional tenants who pay premium rents for proximity to major employers4. **Tanjung Tokong** combines residential appeal with tourist interest, supporting both rental strategies effectively5. **Gurney Drive** offers steady yields from its urban convenience and proximity to shopping and dining establishments

These areas succeed because they serve multiple tenant types - tourists seeking short stays, expatriates requiring furnished long-term rentals, and local professionals preferring modern amenities and convenient locations.

Investment success in these areas depends on property type, with condominiums generally offering better yields than landed properties due to lower maintenance costs and higher tenant turnover potential.

How have property prices in Penang changed over the past five years, and what is the forecast?

Penang property prices have experienced significant growth since 2020, with prime areas seeing 6-12% year-over-year increases and overall values nearly doubling since 2010.

The COVID-19 pandemic initially slowed price growth in 2020, but recovery began in 2021 as Malaysia reopened borders and economic activity resumed. Government stimulus measures and low interest rates supported property market recovery throughout 2021-2022.

Luxury condominiums faced oversupply challenges in some areas, moderating price growth in the high-end segment. However, mid-range condominiums, landed properties, and mainstream housing showed stronger appreciation due to sustained local demand and limited new supply.

Infrastructure developments, particularly the Penang LRT Mutiara Line and Silicon Island project, have driven speculation and price increases in connected areas since 2023. Properties near future LRT stations command premium prices in anticipation of improved connectivity.

Forecasts for 2025-2030 project steady annual growth of 2-5%, especially in city center locations and infrastructure-linked zones. This moderate growth rate reflects market maturation while still offering solid returns for long-term investors.

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

What are the key infrastructure developments in Penang that could impact property values?

Several major infrastructure projects are reshaping Penang's property landscape and creating new value appreciation opportunities across the state.

The Penang LRT Mutiara Line represents the most significant transportation upgrade, connecting key areas and boosting property values along its route. Properties within walking distance of proposed LRT stations show immediate price appreciation as buyers anticipate improved connectivity and convenience.

The Silicon Island project involves major land reclamation to create a new tech-focused township, particularly impacting property values in Bayan Lepas, Teluk Kumbar, and surrounding areas. This development attracts technology companies and creates demand for modern residential properties nearby.

Airport and road infrastructure upgrades continue driving property growth in Batu Maung, Teluk Kumbar, and Bayan Lepas. Improved access to Penang International Airport makes these areas attractive to both residents and investors seeking rental income from business travelers.

The Penang South Islands project, though still in planning stages, could significantly impact southern Penang property values once approved and commenced. This mega-project would create entirely new districts and potentially reshape the state's property map.

Highway improvements and new bridge connections between Penang Island and the mainland continue supporting property values in previously less accessible areas, particularly benefiting Seberang Perai developments.

How does the property market in Penang compare to similar cities in Southeast Asia?

Penang's property market positions competitively within Southeast Asia's secondary cities, offering affordability advantages over major regional hubs while maintaining solid investment potential.

Compared to Singapore, Penang city center condos at RM1,032 per square foot represent significant value, with Singapore's city center properties often exceeding S$2,000 per square foot. However, Singapore offers higher rental yields in absolute terms due to its stronger currency and economy.

Bangkok's central districts command similar prices to Penang's premium areas, but Bangkok offers larger market size and greater liquidity for property investors. Penang counters with better English language environment and more stable political conditions.

Vietnamese cities like Ho Chi Minh City and Hanoi offer higher growth potential but with greater regulatory risks for foreign buyers. Penang provides more established legal frameworks and easier foreign ownership processes, particularly for condominiums.

Penang's combination of lifestyle quality, healthcare standards, English proficiency, and investment returns creates a unique value proposition for retirees, digital nomads, and international investors seeking exposure to Southeast Asian property markets without the complexity of larger cities.

The state's focus on technology industry development, medical tourism, and heritage preservation supports long-term property value stability compared to cities dependent on single industries or more volatile economic sectors.

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. Penang Property Market Outlook - Bamboo Routes
2. Average House Price Malaysia - Bamboo Routes
3. Penang Property Analysis - Bamboo Routes
4. Johor Property Price Analysis - IQI Global
5. Penang Property Market Analysis - Penang Property Talk
6. Malaysia Property Market Outlook - Bamboo Routes
7. Malaysian Property Market Growth 2025 - Penang Property Talk
8. Hottest Real Estate Areas in Penang - Bamboo Routes