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If you're a foreigner thinking about buying an apartment in Penang, you're probably wondering what it will really cost beyond just the listing price.
This guide breaks down everything from actual transaction prices to closing costs, monthly fees, and the specific rules that apply to foreign buyers in Penang.
We constantly update this blog post to reflect the latest data and policy changes affecting property buyers in Penang.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Penang.
Insights
- Foreign buyers in Penang should budget for closing costs between 6% and 12% of the purchase price, with stamp duty being the largest expense and subject to recent policy changes effective January 2026.
- The median apartment price in Penang sits around RM 570,000 (about USD 120,000), but averages jump to RM 750,000 because waterfront and prime island projects pull numbers up significantly.
- Penang Island apartments cost roughly 40% to 60% more per square meter than mainland Seberang Perai properties, making the mainland a practical option for budget-conscious buyers.
- Foreign buyers in Penang typically need a 30% down payment since most banks only offer around 70% financing to non-citizens, compared to 90% for Malaysians.
- Monthly HOA fees in Penang condos range from RM 270 to RM 720 for a typical 900 sq ft unit, and this includes both maintenance and sinking fund contributions.
- Electricity is the biggest utility expense in Penang apartments, often running RM 120 to RM 350 per month depending on how much you use air conditioning in the tropical climate.
- Penang has state-level foreign acquisition rules and minimum purchase thresholds that vary between island and mainland locations, meaning some cheaper units may be off-limits to foreigners.
- New apartments in Penang typically sell for 10% to 25% more than comparable resale units, with the premium driven by modern amenities and developer branding in prime locations.
- Budget 2026 discussions have flagged a potential increase in foreign-buyer stamp duty rates, which could raise your closing costs if the proposal becomes law.
How much do apartments really cost in Penang in 2026?
What's the average and median apartment price in Penang in 2026?
As of January 2026, the median apartment price in Penang is around RM 570,000 (approximately USD 120,000 or EUR 112,000), while the average sits higher at about RM 750,000 (USD 158,000 or EUR 147,000) because luxury waterfront projects pull the numbers up.
When you look at price per square meter, Penang apartments have a median of roughly RM 5,900 per sqm (USD 1,240 or EUR 1,160 per sqm), and an average closer to RM 6,500 per sqm (USD 1,370 or EUR 1,280 per sqm).
Most standard apartments in Penang fall within a price range of RM 400,000 to RM 1,200,000 (USD 84,000 to USD 253,000, or EUR 78,000 to EUR 235,000), which covers the majority of what buyers actually purchase outside of the ultra-premium segment.
How much is a studio apartment in Penang in 2026?
As of January 2026, a typical studio apartment in Penang costs between RM 300,000 and RM 500,000 (USD 63,000 to USD 105,000, or EUR 59,000 to EUR 98,000), though prices vary significantly based on location.
Entry-level and mid-range studio apartments on the mainland or non-prime island areas start around RM 250,000 to RM 400,000 (USD 53,000 to USD 84,000), while high-end studios in prime waterfront locations like Gurney Drive can reach RM 600,000 to RM 900,000 (USD 126,000 to USD 190,000, or EUR 118,000 to EUR 176,000).
Studio apartments in Penang typically measure between 35 and 55 square meters, which is fairly compact but standard for this property type in Malaysian urban markets.
How much is a one-bedroom apartment in Penang in 2026?
As of January 2026, a typical one-bedroom apartment in Penang costs around RM 450,000 to RM 650,000 (USD 95,000 to USD 137,000, or EUR 88,000 to EUR 127,000), depending on whether you're looking at island or mainland locations.
Entry-level one-bedroom units in areas like Butterworth or Bukit Mertajam start from RM 320,000 to RM 500,000 (USD 67,000 to USD 105,000), while luxury one-bedroom apartments in prime island spots like Tanjung Tokong or Gurney can reach RM 750,000 to RM 1,200,000 (USD 158,000 to USD 253,000, or EUR 147,000 to EUR 235,000).
One-bedroom apartments in Penang typically range from 55 to 75 square meters, giving you a bit more living space than studios while remaining manageable for singles or couples.
How much is a two-bedroom apartment in Penang in 2026?
As of January 2026, a typical two-bedroom apartment in Penang costs around RM 650,000 to RM 900,000 (USD 137,000 to USD 190,000, or EUR 127,000 to EUR 176,000), which represents the most popular size for families and investors.
Entry-level two-bedroom units on the mainland can be found for RM 450,000 to RM 700,000 (USD 95,000 to USD 147,000), while high-end two-bedroom apartments in prime island locations with sea views can reach RM 1,000,000 to RM 2,000,000 (USD 211,000 to USD 421,000, or EUR 196,000 to EUR 392,000).
By the way, you will find much more detailed price ranges for apartments in our property pack covering the property market in Penang.
How much is a three-bedroom apartment in Penang in 2026?
As of January 2026, a typical three-bedroom apartment in Penang costs around RM 900,000 to RM 1,400,000 (USD 190,000 to USD 295,000, or EUR 176,000 to EUR 274,000), making this size category more of a commitment but ideal for larger families.
Entry-level three-bedroom units on the mainland start from RM 600,000 to RM 900,000 (USD 126,000 to USD 190,000), while luxury three-bedroom apartments in prime island locations can reach RM 1,400,000 to RM 3,000,000 or more (USD 295,000 to USD 632,000, or EUR 274,000 to EUR 588,000).
Three-bedroom apartments in Penang typically measure between 110 and 160 square meters, providing generous space for families who need room to spread out.
What's the price gap between new and resale apartments in Penang in 2026?
As of January 2026, new-build apartments in Penang typically sell for 10% to 25% more than comparable resale units in the same location, with the premium being highest for branded developments in prime areas.
New apartments in Penang average around RM 6,500 to RM 8,000 per square meter (USD 1,370 to USD 1,685 per sqm, or EUR 1,275 to EUR 1,570 per sqm) in desirable locations, reflecting modern amenities and developer premiums.
Resale apartments in Penang average around RM 5,200 to RM 6,500 per square meter (USD 1,095 to USD 1,370 per sqm, or EUR 1,020 to EUR 1,275 per sqm), though you may face higher renovation costs and older facilities with these units.
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Can I afford to buy in Penang in 2026?
What's the typical total budget (all-in) to buy an apartment in Penang in 2026?
As of January 2026, foreigners buying a standard apartment in Penang should budget approximately RM 870,000 to RM 1,000,000 all-in (USD 183,000 to USD 211,000, or EUR 170,000 to EUR 196,000) for an RM 800,000 property, once you include all closing costs and move-in expenses.
Beyond the purchase price, your all-in budget in Penang needs to cover stamp duty (the biggest expense for foreigners), legal and conveyancing fees, loan-related costs if financing, state consent fees, and basic furnishing or initial repairs.
We go deeper and try to understand what costs can be avoided or minimized (and how) in our Penang property pack.
You can also read our dedicated blog article to understand what you can at different budget levels in Penang.
What down payment is typical to buy in Penang in 2026?
As of January 2026, foreign buyers in Penang typically need a 30% down payment, which means around RM 240,000 (USD 50,500 or EUR 47,000) for an RM 800,000 apartment, since most banks only offer about 70% financing to non-citizens.
The minimum down payment that Malaysian banks usually require from foreign buyers is 30%, compared to just 10% for Malaysian citizens buying their first or second home.
To secure the most favorable mortgage terms as a foreigner in Penang, you should plan for 30% down payment plus have enough cash to cover all closing costs, which gives banks confidence in your financial position.
You can also read our latest update about mortgage and interest rates in Malaysia.
We made this infographic to show you how property prices in Malaysia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Which neighborhoods are cheapest or priciest in Penang in 2026?
How much does the price per m² for apartments vary by neighborhood in Penang in 2026?
As of January 2026, apartment prices per square meter in Penang range from about RM 3,900 per sqm (USD 820 or EUR 765 per sqm) in the most affordable areas to over RM 10,800 per sqm (USD 2,275 or EUR 2,120 per sqm) in prime waterfront locations.
The most affordable neighborhoods in Penang include Bukit Mertajam, Butterworth, and Air Itam, where you can find apartments priced around RM 3,900 to RM 4,800 per sqm (USD 820 to USD 1,010 per sqm, or EUR 765 to EUR 940 per sqm).
The most expensive neighborhoods in Penang are Gurney Drive, Pulau Tikus, Tanjung Tokong, and Seri Tanjung Pinang, where prime apartments command RM 7,500 to RM 10,800 per sqm or more (USD 1,580 to USD 2,275 per sqm, or EUR 1,470 to EUR 2,120 per sqm).
By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.
What neighborhoods are best for first-time buyers on a budget in Penang in 2026?
As of January 2026, the top three neighborhoods for first-time buyers on a budget in Penang are Sungai Ara, Bayan Lepas, and Bukit Mertajam, all offering better value per square meter than the prime north coast areas.
In these budget-friendly Penang neighborhoods, you can find apartments priced between RM 350,000 and RM 700,000 (USD 74,000 to USD 147,000, or EUR 69,000 to EUR 137,000), which is significantly more accessible than island waterfront areas.
These neighborhoods offer good connectivity to employment hubs (especially Bayan Lepas industrial corridor), established amenities like shopping centers and schools, and a broader selection of mid-range condos to choose from.
The main trade-off of buying in these budget-friendly Penang neighborhoods is that you won't have the prestigious address or sea views that prime island locations offer, and some areas may have longer commutes to George Town's heritage center.
Which neighborhoods have the fastest-rising apartment prices in Penang in 2026?
As of January 2026, the neighborhoods showing the fastest apartment price growth in Penang are Bayan Lepas, Sungai Ara, and Tanjung Tokong, all benefiting from strong employment or lifestyle demand drivers.
These fast-appreciating Penang neighborhoods have seen year-over-year price increases estimated at 5% to 10%, outpacing the broader market which has been growing more modestly.
The main driver behind rapid price growth in these Penang neighborhoods is proximity to employment nodes (like the Bayan Lepas industrial corridor) combined with newer, higher-priced developments entering the market and pulling averages up.
You can also read our latest update about property price forecasts in Penang.
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What extra costs will I pay on top of the apartment price in Penang in 2026?
What are all the buyer closing costs when you buy an apartment in Penang?
For a typical RM 800,000 apartment purchase in Penang, foreign buyers should expect total closing costs of roughly RM 48,000 to RM 96,000 (USD 10,100 to USD 20,200, or EUR 9,400 to EUR 18,800), depending on financing and specific circumstances.
The main categories of closing costs buyers must pay in Penang include stamp duty on the transfer instrument, legal and conveyancing fees, loan-related costs if financing, state consent fees for foreign buyers, and miscellaneous disbursements like title searches.
Stamp duty is typically the largest closing cost expense for foreign buyers in Penang, especially after Malaysia introduced a flat-rate stamp duty on transfer instruments for foreigners starting January 2024, with potential increases flagged in Budget 2026 discussions.
Legal fees in Penang are guided by the Malaysian Bar's remuneration framework and follow a scale-fee structure, but the exact amount can vary slightly between law firms, and some disbursements may be negotiable.
On average, how much are buyer closing costs as a percentage of the purchase price for an apartment in Penang?
Foreign buyers in Penang should typically budget 6% to 10% of the purchase price for closing costs if paying cash, or 7% to 12% if taking out a mortgage, with stamp duty being the largest variable factor.
The realistic range that covers most standard transactions in Penang spans from about 6% on the low end (minimal mortgage, favorable stamp duty treatment) to 12% on the high end (full financing plus potential higher foreign-buyer stamp duty rates if Budget 2026 proposals take effect).
We actually cover all these costs and strategies to minimize them in our pack about the real estate market in Penang.
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 ongoing monthly and yearly costs of an apartment in Penang in 2026?
What are typical HOA fees in Penang right now?
HOA fees (called maintenance fees plus sinking fund in Penang) are standard for condos and apartments, with typical combined monthly costs ranging from RM 270 to RM 720 (USD 57 to USD 152, or EUR 53 to EUR 141) for a 900 square foot unit.
The realistic range of these building charges in Penang spans from about RM 0.30 to RM 0.80 per square foot per month, with basic older buildings at the low end and full-facility luxury towers at the high end.
What utilities should I budget monthly in Penang right now?
For a typical apartment in Penang, you should budget around RM 250 to RM 500 per month (USD 53 to USD 105, or EUR 49 to EUR 98) for all utilities combined, including electricity, water, sewerage, and internet.
The realistic range depends heavily on your air conditioning usage, with smaller households paying RM 200 to RM 350 monthly and larger apartments with heavy AC use reaching RM 450 to RM 650 per month (USD 95 to USD 137, or EUR 88 to EUR 127).
Your monthly utility budget in Penang will cover electricity (TNB), water (PBAPP), sewerage (IWK), and internet or mobile data plans.
Electricity is by far the most expensive utility for Penang apartment owners, typically running RM 120 to RM 350 per month depending on how much you use air conditioning in the tropical climate.
How much is property tax on apartments in Penang?
Property taxes on apartments in Penang typically total between RM 500 and RM 3,000 per year (USD 105 to USD 632, or EUR 98 to EUR 588), combining both assessment tax (cukai pintu) and quit rent (cukai tanah).
Assessment tax in Penang is calculated based on your property's assessed annual value multiplied by a rate set by the local council (MBPP for the island), while quit rent is a state land tax that Penang has revised with new rates effective January 2026.
The realistic range for annual property taxes in Penang varies from a few hundred ringgit for modest units to several thousand for larger or prime-location apartments, depending on how the council has valued your specific property.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Penang.
What's the yearly building maintenance cost in Penang?
The typical yearly building maintenance cost for Penang apartment owners ranges from RM 3,600 to RM 8,400 (USD 758 to USD 1,770, or EUR 706 to EUR 1,647), which is essentially your monthly HOA fees annualized.
The realistic range depends on building age and type, with older walk-up apartments at the lower end around RM 3,000 to RM 4,500 yearly, and modern full-facility towers at the higher end from RM 6,000 to RM 10,000 or more per year.
Building maintenance costs in Penang typically cover common area upkeep, security, cleaning, lift maintenance, pool and gym facilities (if applicable), and contributions to the sinking fund for future major repairs.
In Penang, building maintenance costs are included in your monthly HOA fees, so there's no separate charge, though special assessments can occur in older buildings needing major repairs like elevator replacement or waterproofing.
How much does home insurance cost in Penang?
Home insurance for apartments in Penang typically costs between RM 200 and RM 800 per year (USD 42 to USD 168, or EUR 39 to EUR 157) for standard contents coverage, though comprehensive policies with higher sums insured can reach RM 1,500 or more annually.
The realistic range depends on your coverage level and sum insured, with basic contents-only policies at the lower end and comprehensive houseowner plus householder packages with add-ons at the higher end.
Home insurance is generally optional for apartment owners in Penang, though if you have a mortgage your bank will typically require at least mortgage-related takaful or fire insurance on the property.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Penang, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| NAPIC (JPPH) | Malaysia's official property data center under the Valuation and Property Services Department. | We used it to anchor the official baseline on the national market. We also cross-checked private datasets against their publications. |
| Bank Negara Malaysia | Malaysia's central bank publishes the reference house price index used by policymakers. | We used it to understand macro price trends before projecting 2026 estimates. We ensured our Penang numbers don't contradict national direction. |
| Brickz | Long-running Malaysian portal publishing computed transaction medians and distributions. | We used it as the transaction reality check for Penang condo pricing. We applied its ranges to bound our 2026 estimates. |
| iProperty Malaysia | One of Malaysia's biggest property portals with transaction-based insights. | We used it to get neighborhood-level price variation across Penang. We built practical "what you'll pay by area" sections from their data. |
| Knight Frank Malaysia | Major global property consultancy with established research methods. | We used it to contextualize Penang within Malaysia's broader housing-demand drivers. We cross-referenced against portal data that can skew toward active listings. |
| LHDN (Inland Revenue Board) | The tax authority responsible for stamp duty administration in Malaysia. | We used it as the official anchor for stamp duty concepts. We triangulated the rates using budget documents and tax commentary. |
| CTIM Budget Book | Widely-circulated budget compilation used by finance and tax practitioners. | We used it to support post-January 2024 foreign-buyer stamp duty changes. We calculated all-in closing-cost scenarios for foreigners. |
| KPMG Malaysia | Top-tier professional services firm whose notes are used to interpret budgets. | We used it to flag the proposed increase affecting foreign buyers from January 2026. We built upside-risk scenarios for closing costs. |
| Malaysian Bar | The professional body governing solicitors that sets the legal fee framework. | We used it to estimate lawyer and conveyancing fees accurately. We built realistic buyer closing-cost ranges based on the official scale. |
| PTG Penang | Penang state land authority that controls state consent processes for foreigners. | We used it to ground the fact that Penang has state-level processes and fees for foreign acquisition. We referenced it for Penang-specific legal realities. |
| MBPP (Penang Island City Council) | The city council that levies and collects assessment tax on the island. | We used it to anchor the legitimacy of assessment tax as an ongoing cost. We explained what assessment tax is based on using their guidance. |
| JPPH Rating Explainer | Government valuation department explaining the assessment tax concept. | We used it to explain simply what assessment tax is and why it exists. We kept the property tax section accurate without relying on hearsay. |
| PBAPP (Penang Water) | Primary-source tariff document published by the Penang water operator. | We used it to estimate monthly water costs using Penang's actual tariff blocks. We grounded utilities budgeting in real tariffs, not generic averages. |
| TNB (Tenaga Nasional) | National utility publishing the tariff schedule it applies. | We used it to set realistic electricity budgets for early 2026 after mid-2025 tariff changes. We sized monthly utilities for typical condo households. |
| IWK (Indah Water) | Malaysia's national sewerage company (government-owned). | We used it to include sewerage charges in monthly true cost budgeting. We avoided relying on secondhand summaries of IWK billing. |
| Berjaya Sompo Insurance | Major licensed insurer showing premium rate tables transparently. | We used it to estimate home insurance costs using published rate logic. We used it as a pricing model cross-check, not as the only quote available. |
| Juwai Asia | International property portal with guides for foreign buyers in Malaysia. | We used it to understand typical foreign buyer financing arrangements. We cross-checked down payment and loan margin guidance for non-citizens. |
| New Straits Times | Reputable Malaysian news source reporting on state policy announcements. | We used it to confirm Penang's quit rent changes effective January 2026. We included this in property tax guidance for buyers. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malaysia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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