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
Penang has become one of Southeast Asia's most popular destinations for foreign property buyers, blending UNESCO heritage charm with modern coastal living.
The state's condo market offers a unique mix of lifestyle appeal and investment potential, but navigating it as a foreigner involves understanding minimum price thresholds, state approval processes, and transaction costs that differ significantly from other countries.
This guide breaks down everything you need to know about Penang condo prices, neighborhoods, buying steps, and ongoing costs in early 2026, so you can make informed decisions without the confusion.
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
- Foreigners must spend at least RM 1,000,000 (around USD 246,000) to buy any Penang condo, which often means purchasing more space than needed just to meet the threshold.
- Penang condo prices average around RM 5,640 per square meter in early 2026, but island properties typically cost 30% to 50% more than mainland equivalents for similar sizes.
- Transaction costs for foreign buyers in Penang can reach 11% to 14% of the purchase price, mainly due to the flat 8% stamp duty rate introduced in Budget 2026.
- Rental yields in Penang range from 4% to 5.5% gross, with affordable apartments in high-demand areas like Bayan Lepas often outperforming luxury condos in Gurney Drive.
- The state consent process for foreign buyers typically adds 2 to 4 months to the purchase timeline, making Penang resale transactions take 3 to 6 months total.
- Penang island property prices have grown at an average annual rate of 3.2% over the past 25 years, with prime areas like Gurney Drive seeing 7% to 10% appreciation in 2024.
- Monthly condo ownership costs in Penang typically range from RM 700 to RM 1,300, covering maintenance fees, utilities, and sinking fund contributions.
- Tanjung Tokong and Tanjung Bungah attract the most foreign condo buyers in Penang because of their international schools, expat community, and proximity to beaches.
- New-build condos in Penang usually cost 10% to 25% more than comparable resale units, with the gap widest in island waterfront projects targeting global buyers.
How much does a condo actually cost in Penang?
What is the average price per square meter for a condo in Penang in 2026?
As of early 2026, the average price per square meter for a condo in Penang is approximately RM 5,640 (around USD 1,390 or EUR 1,280), based on a median of RM 524 per square foot converted to metric.
That said, Penang condo prices vary widely depending on location and building quality, with a realistic range spanning from RM 4,690 to RM 7,030 per square meter (USD 1,150 to USD 1,730 or EUR 1,060 to EUR 1,600) for most standard condos across the state.
This means island properties in areas like Gurney Drive can easily exceed RM 10,000 per square meter, while mainland condos in Butterworth or Seberang Jaya sit closer to RM 4,000 per square meter, so your location choice dramatically affects what you pay.
How much does a one-bedroom, a two-bedroom and a three-bedroom condo cost in Penang in 2026?
As of early 2026, a one-bedroom condo in Penang (typically 50 to 65 square meters) costs approximately RM 280,000 to RM 370,000 (around USD 69,000 to USD 91,000 or EUR 63,000 to EUR 84,000) at median price levels.
A two-bedroom condo in Penang (typically 70 to 95 square meters) costs approximately RM 395,000 to RM 535,000 (around USD 97,000 to USD 132,000 or EUR 89,000 to EUR 121,000), making it the most common choice for both local families and expatriates.
A three-bedroom condo in Penang (typically 100 to 130 square meters) costs approximately RM 565,000 to RM 730,000 (around USD 139,000 to USD 180,000 or EUR 128,000 to EUR 165,000), though these prices apply mainly to locals since foreigners must meet a RM 1,000,000 minimum anyway.
By the way, you will find much more detailed price ranges across surfaces and neighborhoods in our Penang property pack.
What is the cheapest condo a foreigner can buy in Penang in 2026?
As of early 2026, the cheapest condo a foreigner can legally purchase in Penang is RM 1,000,000 (approximately USD 246,000 or EUR 226,000), as this is the state-mandated minimum price threshold for non-Malaysian buyers of strata properties on both Penang Island and the mainland.
For that RM 1,000,000 budget, foreigners typically find larger units in newer mainland developments around Butterworth, Seberang Jaya, or Bukit Mertajam, or smaller to medium-sized units in older island projects slightly outside the prime coastal belt.
The main trade-off at this price point is that you are buying more property than you might actually need just to meet the legal requirement, and island options at RM 1,000,000 tend to be in less prestigious locations or older buildings compared to what local buyers can access for the same money.
How much does a luxury condo cost in Penang in 2026?
As of early 2026, luxury condos in Penang typically start at around RM 2,000,000 (approximately USD 492,000 or EUR 453,000) and can exceed RM 6,000,000 (approximately USD 1,480,000 or EUR 1,360,000) for premium penthouse units or branded residences with sea views.
Luxury condos in Penang are defined by features like unobstructed sea views, large floor plans exceeding 150 square meters, premium finishes, concierge services, infinity pools, private lifts, and prestigious developer branding, often including international hospitality partnerships.
The neighborhoods known for luxury condos in Penang include Gurney Drive, Pulau Tikus, Tanjung Tokong, Tanjung Bungah, and parts of Batu Ferringhi, all located on the island's northern coast where land scarcity and lifestyle amenities drive premium pricing.
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What is the usual price difference between new-build and resale condos in Penang in 2026?
As of early 2026, new-build condos in Penang typically cost 10% to 25% more than comparable resale units, which translates to roughly RM 50,000 to RM 250,000 extra (around USD 12,000 to USD 62,000 or EUR 11,000 to EUR 57,000) depending on the property value and location.
One important factor that can significantly widen this gap in Penang is the project's positioning: waterfront or sea-view launches on the island marketed to international buyers often carry premiums exceeding 30%, while mainland projects with abundant competing supply may see almost no gap between new and resale prices.
Are condo prices rising or falling in Penang in 2026?
As of early 2026, condo prices in Penang are rising modestly, with the overall market showing annual growth of approximately 0.9% to 3% based on the Malaysian House Price Index, while prime areas have seen stronger appreciation of 5% to 10% year-on-year.
The main factor driving prices upward in Penang is a combination of infrastructure investments (particularly the approved Penang LRT project), steady foreign direct investment in the tech sector creating job demand, and limited new supply in desirable island locations where land is scarce.
This price trend is not uniform across Penang: island locations like George Town, Gurney Drive, and Tanjung Bungah are experiencing stronger growth, while mainland areas and older high-rise stock in oversupplied pockets see flatter or slower appreciation.
You can also read our latest update about property price forecasts in Penang.
What has been the 5-year condo price trend in Penang in 2026?
As of early 2026, Penang condo prices have increased by approximately 15% to 20% over the past five years (2021 to 2026), representing an average annual growth rate of roughly 3% to 4%, which outpaces the state's earlier correction period in 2018 and 2019.
The peak period for Penang condo price growth during this five-year span was 2023 to 2024, when strong demand, infrastructure project announcements, and rising construction costs pushed prices up more aggressively, with high-end properties in prime locations gaining 7% to 10% annually.
Please note that you will find much more detailed price analyses and forecasts in our property pack covering the real estate market in Penang.
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.
What extra costs should I expect when buying a condo in Penang?
What are the total transaction costs when buying a condo in Penang in 2026?
As of early 2026, total transaction costs for a foreign buyer purchasing a condo in Penang typically range from 11% to 14% of the purchase price, meaning you should budget approximately RM 110,000 to RM 140,000 (around USD 27,000 to USD 34,500 or EUR 25,000 to EUR 32,000) on a RM 1,000,000 condo.
These costs break down into stamp duty on the transfer (the largest item), legal fees for the Sale and Purchase Agreement and transfer documents, state approval processing fees for foreign buyers, loan-related costs if you finance the purchase, and various administrative disbursements.
The largest single expense for foreign condo buyers in Penang is stamp duty, which under Budget 2026 rules is a flat rate of up to 8% for non-citizens, translating to approximately RM 80,000 on a RM 1,000,000 purchase before any other fees.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Penang.
What hidden fees do condo buyers often overlook in Penang?
The most commonly overlooked fee for condo buyers in Penang is the sinking fund or deposit top-up collected at handover, which can amount to RM 5,000 to RM 15,000 (around USD 1,200 to USD 3,700 or EUR 1,100 to EUR 3,400) for newer buildings with extensive facilities.
Other hidden fees that frequently surprise first-time condo buyers in Penang include renovation deposits required by the management corporation (often RM 2,000 to RM 5,000 refundable), car park title or assignment fees if parking is treated as a separate parcel, and outstanding maintenance or utility balances that must be cleared before completion.
These hidden fees typically become due during the final stages of the buying process, specifically between signing the Sale and Purchase Agreement and the handover of keys, so buyers should ensure their lawyers verify all outstanding charges before releasing final payment.
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Which neighborhoods are best for buying a condo in Penang?
What are the most popular neighborhoods for foreign condo buyers in Penang in 2026?
As of early 2026, the three most popular neighborhoods for foreign condo buyers in Penang are Tanjung Tokong, Tanjung Bungah, and the Gurney Drive corridor, all located along the island's northern coast with easy access to beaches, international schools, and lifestyle amenities.
These neighborhoods attract foreign buyers specifically because they offer a walkable, self-contained expatriate ecosystem with English-speaking services, established medical facilities, international supermarkets, and a critical mass of other foreigners that makes integration easier than in predominantly local areas.
Condos in these popular foreigner-friendly neighborhoods typically range from RM 1,000,000 to RM 3,000,000 (approximately USD 246,000 to USD 738,000 or EUR 226,000 to EUR 680,000), with luxury units on Gurney Drive and premium sea-view projects exceeding RM 5,000,000.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.
Which areas have the cheapest condos in Penang in 2026?
As of early 2026, the three areas with the cheapest condos in Penang are Butterworth, Seberang Jaya, and Bukit Mertajam, all located on the mainland where land is more abundant and prices reflect local rather than expatriate demand.
Condos in these cheapest areas typically range from RM 250,000 to RM 600,000 (approximately USD 62,000 to USD 148,000 or EUR 57,000 to EUR 136,000), though foreigners must still meet the RM 1,000,000 minimum, which means buying significantly more space or a premium unit within these markets.
Which neighborhoods have the best rental demand for condos in Penang in 2026?
As of early 2026, the three neighborhoods with the best rental demand for condos in Penang are Bayan Lepas (near the industrial corridor and airport), George Town and Jelutong (city center convenience), and Tanjung Tokong and Tanjung Bungah (expatriate and tourist demand).
Rental yields in these high-demand neighborhoods typically range from 4% to 5.5% gross for well-located condos, with affordable units in Bayan Lepas sometimes achieving 5% to 6% due to steady demand from tech sector workers, while luxury condos in Gurney Drive may yield only 3% to 4%.
The main factor driving rental demand in these Penang neighborhoods is the concentration of employment: Bayan Lepas hosts major electronics and semiconductor employers, George Town serves as the commercial hub, and the northern coastal belt attracts expatriates, retirees, and digital nomads seeking lifestyle rentals.
You can also read our detailed analysis about the rental yields for condos in Penang.
What neighborhoods should I avoid when buying a condo in Penang in 2026?
As of early 2026, condo buyers in Penang should approach with caution areas with known flood risk (certain low-lying streets in Jelutong, parts of Batu Maung), older projects with chronic maintenance issues, and oversupplied pockets where many similar units compete for the same tenant pool.
The main reasons these areas are considered less desirable include poor resale liquidity (too many competing sellers), higher vacancy rates that depress rental returns, and the practical hassle of dealing with aging infrastructure, weak management corporations, or recurrent flooding during monsoon season.
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 is the condo buying process like in Penang?
What are the steps to buying a condo as a foreigner in Penang?
Buying a condo as a foreigner in Penang involves approximately six main steps: property selection, booking deposit, hiring a lawyer, signing the Sale and Purchase Agreement, obtaining state authority consent for foreign acquisition, and completing the transfer with key handover.
The key steps in sequence are: (1) identify a condo meeting the RM 1,000,000 minimum and negotiate terms, (2) pay a booking fee of 1% to 3%, (3) engage a conveyancing lawyer who will prepare documents, (4) sign the SPA and pay up to 10% deposit, (5) submit foreign buyer approval application to the Penang state authority through your lawyer, and (6) complete payment and receive keys upon approval and document registration.
The step that typically takes the longest in Penang is the state authority consent process for foreign buyers, which can add 2 to 4 months to your timeline as the application is reviewed and approved, especially if documentation is incomplete or requires clarification.
Documents a foreigner must prepare before starting include a valid passport with sufficient validity, proof of income or financial capacity, a completed state consent application form (your lawyer will guide this), and any additional documentation required by the seller or developer.
You can also read our blog article about what foreigners can buy and own in Penang.
How long does it take to complete a condo purchase in Penang?
The typical timeframe to complete a resale condo purchase in Penang as a foreigner is 3 to 6 months from signed offer to ownership transfer, with the state consent process and loan approval (if applicable) being the main time factors.
Factors that can speed up the process include having all documents ready upfront, buying with cash rather than financing, and choosing a property with clear title (rather than assignment), while delays often arise from incomplete foreign buyer applications, slow bank valuations, or seller-side documentation issues.
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What are the ongoing costs of owning a condo in Penang?
What are the typical recurring monthly condo costs in Penang in 2026?
As of early 2026, the total typical monthly cost of owning a condo in Penang (including maintenance fees, sinking fund, and utilities) ranges from approximately RM 700 to RM 1,300 (around USD 172 to USD 320 or EUR 158 to EUR 294) for a standard unit, with luxury buildings potentially exceeding RM 1,500.
Monthly maintenance fees in Penang condos typically range from RM 250 to RM 700 (around USD 62 to USD 172 or EUR 57 to EUR 158), depending on building size, facilities, and whether security and landscaping services are extensive.
The typical monthly sinking fund contribution for Penang condos is usually bundled with maintenance or charged separately at roughly 10% of the maintenance fee, translating to approximately RM 25 to RM 100 (around USD 6 to USD 25 or EUR 6 to EUR 23) per month.
Monthly utility costs for a standard condo in Penang, covering electricity, water, and sewerage, typically range from RM 200 to RM 500 (around USD 49 to USD 123 or EUR 45 to EUR 113), with air-conditioning usage being the main variable.
What are the typical annual condo ownership costs in Penang in 2026?
As of early 2026, the total typical annual ownership cost for a Penang condo, covering property assessment, quit rent, and insurance, ranges from approximately RM 1,000 to RM 3,500 (around USD 246 to USD 861 or EUR 226 to EUR 793), depending on property value and coverage level.
Annual property-related charges in Penang include assessment (local authority rates) and quit rent (state land charge), which together typically amount to a few hundred to a couple thousand ringgit per year for condos, though Penang announced quit rent increases effective January 2026 so owners should expect these to rise.
Annual condo insurance in Penang, covering fire and contents at a basic level, typically costs RM 400 to RM 1,200 (around USD 98 to USD 295 or EUR 91 to EUR 272) per year, with higher coverage for valuable contents pushing costs upward.
Other significant annual costs Penang condo owners should budget for include internet service (RM 1,200 to RM 2,400 per year), potential special assessments for major repairs, and any subscription or club fees if the building has premium facilities.
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.
What do expats and locals really say about buying condos in Penang?
Do most expats regret or recommend buying a condo in Penang in 2026?
As of early 2026, the general sentiment among expats is that most recommend buying a condo in Penang if they plan to stay medium to long term, particularly those who value the lifestyle, food scene, and lower cost of living compared to Singapore or Hong Kong.
The most common reason expats give for recommending Penang condo ownership is the exceptional quality of daily life at an affordable price point: being able to rent out a luxury-sized apartment for under USD 2,500 a month means buying makes sense mainly for those committed to staying or who see it as a tax-efficient base rather than a pure investment play.
The most common reason expats give for regretting their Penang condo purchase is underestimating transaction costs and the time required for state approval, especially when the RM 1,000,000 minimum forced them into a larger or more expensive property than they actually needed for their lifestyle.
What unexpected challenges do foreign condo owners face in Penang?
The most common unexpected challenge foreign condo owners face in Penang is the mismatch between the RM 1,000,000 minimum purchase requirement and actual living needs, which often results in owning more property than necessary and facing weaker rental yields or resale liquidity because the buyer pool is limited to other foreigners.
Other unexpected challenges include the length of the state consent process (which can delay closing by months and create uncertainty), the surprisingly high stamp duty burden under Budget 2026 rules (up to 8% flat for non-citizens), and discovering that condo management quality varies dramatically, meaning a cheaper maintenance fee can signal deferred repairs rather than good value.
Finally, please note that we have made a list of potential risks, scams and pitfalls when buying a new property in Penang.
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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 publisher under the federal valuation department. | We used it to anchor state and national market trends. We treat it as the baseline for all price direction analysis. |
| Malaysian House Price Index (MHPI) | Official government house price index with documented methodology. | We used it to describe whether prices are rising or falling. We treat it as the macro trend signal for early 2026. |
| Bank Negara Malaysia (BNM) | Malaysia's central bank publishing official FX reference rates. | We used it to convert ringgit estimates into USD using the early January 2026 reference rate. |
| Penang Bar Committee Circular | Reproduces state land office guidance used by lawyers handling foreign buyer approvals. | We used it to confirm the RM 1,000,000 foreign buyer minimum for Penang condos. |
| Malaysian Bar Conveyancing FAQ | Professional body explaining the fee framework lawyers actually follow. | We used it to describe legal fee mechanics and buying process steps for foreign buyers. |
| PwC Malaysia Stamp Duty Guide | Established tax reference aligned with Malaysian tax rules. | We used it to anchor the standard tiered stamp duty structure and loan stamp duty concepts. |
| KPMG Budget 2026 Stamp Duty Note | Top-tier tax advisory summarizing Budget 2026 measures clearly. | We used it for the foreign buyer flat stamp duty rate change and to calculate transaction costs. |
| Brickz.my | Long-running Malaysian property analytics site with transaction-based statistics. | We used it to estimate Penang condo median prices per square foot and price ranges. |
| EdgeProp | Major Malaysian property publisher with area-level data summaries. | We used it to triangulate neighborhood prices and rental yields for foreign buyer hotspots. |
| TNB (Tenaga Nasional Berhad) | National electricity utility's official tariff page. | We used it to estimate monthly electricity costs realistically for condo owners. |
| Indah Water Konsortium (IWK) | Government-owned national sewerage company with official tariff schedules. | We used it to include sewerage as a real recurring cost in monthly ownership estimates. |
| PBAPP (Penang Water) | State water operator communicating its own tariff changes. | We used it to ground water bill expectations and flag potential 2026 tariff changes. |
| Reuters | Globally recognized wire service strong for dated policy events. | We used it to support the financing backdrop context with the July 2025 OPR cut to 2.75%. |
| NST (New Straits Times) | Major Malaysian newspaper citing dated state policy changes. | We used it to flag that quit rent and land-related charges can rise and affect annual budgets. |
| Global Property Guide | International property research site with standardized rental yield data. | We used it to benchmark Penang rental yields against national and regional averages. |
| PropertyGuru Malaysia | Major property portal with extensive listings and consumer research. | We used it to validate price ranges, identify available inventory, and reference sentiment studies. |
| Penang Property Talk | Long-running local forum with detailed project discussions and owner feedback. | We used it to identify hidden fees, management quality issues, and real buyer experiences. |
| Asia Lifestyle Magazine | Regional publication with detailed Penang property market analysis. | We used it to cross-reference median prices, rental yields, and neighborhood demand patterns. |
We have made this infographic to give you a quick and clear snapshot of the property market in Malaysia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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