How much do houses cost now in Penang? (2026)

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

How much do houses cost in Penang as of 2026?

What's the median and average house price in Penang as of 2026?

As of early 2026, the median transacted price for a landed house in Penang sits at around RM500,000 (approximately USD 125,000 or EUR 115,000), while the average price reaches closer to RM650,000 (USD 162,500 or EUR 150,000).

The typical price range that covers roughly 80% of landed house transactions in Penang falls between RM320,000 and RM900,000 (USD 80,000 to USD 225,000, or EUR 76,000 to EUR 214,000), with the middle 50% clustering between RM320,000 and RM785,000.

The gap between median and average prices in Penang reveals a market with a long "luxury tail," meaning expensive north-coast bungalows, city-fringe detached homes, and large-land properties pull the average up significantly while most buyers transact closer to the median.

At the median price of RM500,000 in Penang, a buyer can typically expect an older 2-storey terrace house with 3 bedrooms in a mainland location like Bukit Mertajam, or a smaller terrace in less central parts of Penang Island like Balik Pulau.

What's the cheapest livable house budget in Penang as of 2026?

As of early 2026, the minimum budget for a livable landed house in Penang starts at around RM300,000 to RM350,000 (USD 75,000 to USD 87,500, or EUR 71,000 to EUR 83,000) for local buyers, but foreigners face a much higher floor of RM1,000,000 for strata properties on Penang Island and RM3,000,000 for landed houses due to state minimum purchase rules.

"Livable" at the entry-level price point in Penang typically means an older terrace house that may need cosmetic updates, basic maintenance, and possibly roof or waterproofing repairs given the tropical climate and age of many affordable properties.

The cheapest livable houses in Penang are usually found in mainland areas like Bukit Mertajam, Butterworth, and outer Seberang Perai townships, while on the island, the southwestern areas around Balik Pulau offer relatively more affordable options compared to the north coast.

Wondering what you can get? We cover all the buying opportunities at different budget levels in Penang here.

How much do 2 and 3-bedroom houses cost in Penang as of 2026?

As of early 2026, the typical price for 2 to 3-bedroom terrace houses in Penang ranges from RM400,000 to RM600,000 (USD 100,000 to USD 150,000, or EUR 95,000 to EUR 143,000), with the statewide terrace median sitting at approximately RM405,000.

A realistic price range for a 2-bedroom house in Penang falls between RM300,000 and RM500,000 (USD 75,000 to USD 125,000, or EUR 71,000 to EUR 119,000), typically representing smaller or older terraces in mainland suburbs or less central island locations.

For a 3-bedroom house in Penang, buyers should expect a realistic range of RM400,000 to RM700,000 (USD 100,000 to USD 175,000, or EUR 95,000 to EUR 167,000), with significant variation depending on whether the property is on the island versus the mainland.

The typical price premium when moving from a 2-bedroom to a 3-bedroom house in Penang is around 20% to 35%, reflecting the additional built-up area and often better finishing standards that come with the extra room.

How much do 4-bedroom houses cost in Penang as of 2026?

As of early 2026, the typical price for a 4-bedroom house in Penang ranges from RM600,000 to RM1,200,000 (USD 150,000 to USD 300,000, or EUR 143,000 to EUR 286,000), with mainland options clustering at the lower end and island properties commanding premiums.

A realistic price range for a 5-bedroom house in Penang falls between RM1,000,000 and RM2,500,000 (USD 250,000 to USD 625,000, or EUR 238,000 to EUR 595,000), as these larger homes typically fall into the semi-detached or small bungalow category.

For a 6-bedroom house in Penang, buyers should budget between RM2,000,000 and RM5,000,000 (USD 500,000 to USD 1,250,000, or EUR 476,000 to EUR 1,190,000), with prime island locations like Tanjung Bungah pushing toward the higher end of this range.

Please note that we give much more detailed data in our pack about the property market in Penang.

How much do new-build houses cost in Penang as of 2026?

As of early 2026, the typical price for a new-build landed house in Penang ranges from RM650,000 to RM1,500,000 (USD 162,500 to USD 375,000, or EUR 155,000 to EUR 357,000) for terrace and cluster homes, while new semi-detached houses and bungalows start from RM1,500,000 and can exceed RM5,000,000.

The typical percentage premium that new-build houses carry compared to older resale houses in Penang runs between 15% and 35%, reflecting modern layouts, energy efficiency features, developer warranties, and reduced immediate maintenance needs.

How much do houses with land cost in Penang as of 2026?

As of early 2026, the typical price for a detached bungalow with significant land in Penang ranges from RM1,500,000 to RM10,000,000 (USD 375,000 to USD 2,500,000, or EUR 357,000 to EUR 2,380,000), with mainland bungalows starting around RM1,200,000 and premium island locations commanding substantially more.

In Penang, a "house with land" typically refers to detached bungalows sitting on plots of 5,000 square feet or larger, though some generous corner-lot terraces with extended gardens also fall into this category.

Where are houses cheapest and most expensive in Penang as of 2026?

Which neighborhoods have the lowest house prices in Penang as of 2026?

As of early 2026, the neighborhoods with the lowest house prices in Penang are predominantly on the mainland, including Bukit Mertajam, Butterworth, and outer Seberang Perai areas, while Balik Pulau offers relatively more affordable options on the island itself.

The typical house price range in these cheapest neighborhoods falls between RM300,000 and RM550,000 (USD 75,000 to USD 137,500, or EUR 71,000 to EUR 131,000), with Bukit Mertajam terrace medians hovering around RM450,000.

These mainland neighborhoods have lower prices primarily because they sit further from the island's employment hubs, lifestyle amenities, and international schools that drive foreign and premium local demand, rather than because of any fundamental quality issues.

Which neighborhoods have the highest house prices in Penang as of 2026?

As of early 2026, the three neighborhoods with the highest house prices in Penang are Tanjung Bungah, Batu Ferringhi, and the George Town city fringe including Pulau Tikus, all located on the northern and northeastern coast of Penang Island.

The typical house price range in these premium neighborhoods falls between RM1,000,000 and RM5,000,000 (USD 250,000 to USD 1,250,000, or EUR 238,000 to EUR 1,190,000), with Tanjung Bungah terrace medians around RM1,220,000 and larger bungalows regularly exceeding RM4,000,000.

These neighborhoods command the highest prices because they combine limited land supply, sea views or proximity to beaches, established expat communities, proximity to international schools, and strong lifestyle infrastructure that creates sustained premium demand.

Buyers in these premium Penang neighborhoods are typically wealthy Malaysians seeking lifestyle upgrades, MM2H visa holders from Asia and Europe planning long-term stays, and foreign investors looking for rental income from the expat professional market.

How much do houses cost near the city center in Penang as of 2026?

As of early 2026, the typical price for a landed house near Penang's city center (the George Town and Komtar corridor) ranges from RM900,000 to RM1,500,000 (USD 225,000 to USD 375,000, or EUR 214,000 to EUR 357,000), with George Town terraces showing a median around RM1,070,000 and nearby Jelutong at approximately RM1,050,000.

Houses near Penang's major transit hubs, particularly areas expected to benefit from the planned LRT Mutiara Line connecting Komtar to Silicon Island, typically price between RM800,000 and RM1,300,000 (USD 200,000 to USD 325,000, or EUR 190,000 to EUR 310,000), reflecting accessibility premiums.

For houses near top-rated international schools in Penang, such as Dalat International School in Tanjung Bungah or Straits International School, buyers should budget RM1,000,000 to RM2,500,000 (USD 250,000 to USD 625,000, or EUR 238,000 to EUR 595,000) for family-sized landed homes.

Houses in expat-popular areas of Penang, specifically Tanjung Bungah, Tanjung Tokong, Batu Ferringhi, and parts of Pulau Tikus, typically range from RM1,000,000 to RM3,000,000 (USD 250,000 to USD 750,000, or EUR 238,000 to EUR 714,000) for landed properties.

We actually have an updated expat guide for Penang here.

How much do houses cost in the suburbs in Penang as of 2026?

As of early 2026, the typical price for a house in Penang's suburbs ranges from RM400,000 to RM700,000 (USD 100,000 to USD 175,000, or EUR 95,000 to EUR 167,000), with mainland suburbs like Bukit Mertajam anchoring the lower end and island "suburbs" like Balik Pulau sitting slightly higher.

The typical price difference between suburban houses and city-center houses in Penang runs between 40% and 60% lower, meaning buyers can often get significantly more space for their money by choosing mainland or outer-island locations.

The most popular suburbs for house buyers in Penang include Bukit Mertajam for its balance of price and connectivity, Bayan Lepas for proximity to the tech corridor and airport, and Balik Pulau for those seeking more land and a quieter island lifestyle.

What areas in Penang are improving and still affordable as of 2026?

As of early 2026, the top areas in Penang that are improving and still relatively affordable for house buyers include the Bayan Lepas corridor on the island and the Seberang Perai growth zones around Penang Sentral, Butterworth, and Batu Kawan on the mainland.

The current typical house price in these improving yet affordable areas ranges from RM450,000 to RM800,000 (USD 112,500 to USD 200,000, or EUR 107,000 to EUR 190,000), with Bayan Lepas landed properties showing a median around RM1,200,000 for premium options but more affordable terraces starting lower.

The main sign of improvement driving buyer interest in these areas is the confirmed LRT Mutiara Line project, which will connect key island corridors to Penang Sentral on the mainland, making these locations significantly more accessible and attractive for commuters and investors alike.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.

What extra costs should I budget for a house in Penang right now?

What are typical buyer closing costs for houses in Penang right now?

Foreign buyers purchasing a house in Penang should budget approximately 9% to 12% of the purchase price for total closing costs, which is significantly higher than the 4% to 6% that Malaysian citizens typically pay.

The main closing cost categories for house buyers in Penang include stamp duty on the transfer instrument (8% flat rate for foreigners from January 2026), legal fees for the Sale and Purchase Agreement (approximately 1% to 1.5% of purchase price), state consent fees, valuation fees if financing, and registration charges.

The single largest closing cost category for foreign house buyers in Penang is stamp duty, which at 8% of the property value under Budget 2026 rules can amount to RM80,000 or more on a RM1,000,000 property, dwarfing all other transaction costs combined.

We cover all these costs and what are the strategies to minimize them in our property pack about Penang.

How much are property taxes on houses in Penang right now?

The typical annual property tax (assessment tax or "cukai taksiran") for a house in Penang ranges from RM500 to RM3,000 (USD 125 to USD 750, or EUR 119 to EUR 714) depending on the property's location, size, and the council's assessed annual value.

Property tax in Penang is calculated by the local council (MBPP for Penang Island or MBSP for mainland Seberang Perai) based on an "annual value" that the council assigns to your property, multiplied by a percentage rate, rather than being tied directly to your purchase price.

If you want to go into more details, we also have a page with all the property taxes and fees in Penang.

How much is home insurance for a house in Penang right now?

The typical annual home insurance cost for a house in Penang ranges from RM300 to RM1,500 (USD 75 to USD 375, or EUR 71 to EUR 357) for basic fire coverage, with comprehensive policies including contents and flood protection costing more.

The main factors that affect home insurance premiums for houses in Penang include the property's rebuild value, construction type (brick versus timber), location relative to flood-prone areas, and whether you add optional coverages like contents insurance or extended perils.

What are typical utility costs for a house in Penang right now?

The typical total monthly utility cost for a landed house in Penang ranges from RM250 to RM700 (USD 62 to USD 175, or EUR 60 to EUR 167), though heavy air-conditioning use in Penang's tropical heat can push this higher.

The breakdown of main utility categories for houses in Penang includes electricity at RM150 to RM500 per month (the largest component, driven by air-conditioning), water at RM10 to RM50 per month, sewerage at RM8 to RM25 per month, and internet/mobile services at RM100 to RM200 per month.

What are common hidden costs when buying a house in Penang right now?

The estimated total of common hidden costs that house buyers in Penang often overlook ranges from RM15,000 to RM50,000 (USD 3,750 to USD 12,500, or EUR 3,570 to EUR 11,900), depending on property condition and buyer circumstances.

Typical inspection fees that buyers should expect when purchasing a house in Penang range from RM800 to RM2,500 (USD 200 to USD 625, or EUR 190 to EUR 595) for a basic structural and defect inspection, with more detailed specialist inspections costing additional fees.

Other common hidden costs beyond inspections when buying a house in Penang include renovation and repair work (especially roof, waterproofing, and termite treatment for older properties), gated-community maintenance fees, renovation permit charges, and moving expenses.

The hidden cost that tends to surprise first-time house buyers the most in Penang is the extent of repairs needed for older landed properties, particularly waterproofing and termite damage remediation that can easily run RM20,000 to RM50,000 or more.

You will find here the list of classic mistakes people make when buying a property in Penang.

What do locals and expats say about the market in Penang as of 2026?

Do people think houses are overpriced in Penang as of 2026?

As of early 2026, locals and expats in Penang generally view island landed properties as expensive relative to income levels, while mainland options are seen as more fairly valued, though foreigners often feel the market is "artificially expensive" because minimum purchase rules push them into higher price brackets regardless of actual preferences.

Houses in Penang typically stay on the market for 2 to 6 months before selling if priced correctly, with well-located island terraces moving faster (sometimes within weeks) and overpriced or poorly-maintained properties sitting considerably longer.

The main reason locals and expats give for feeling house prices in Penang are high is the disconnect between island landed prices (driven by limited supply and strong lifestyle demand) and typical local incomes, combined with foreign minimum purchase rules that make "affordable" options legally inaccessible to non-citizens.

Compared to one or two years ago, sentiment on Penang house prices has shifted from "cautiously optimistic" to "pragmatically accepting," with buyers recognizing that infrastructure projects like the LRT are likely to support values even if affordability concerns persist.

You'll find our latest property market analysis about Penang here.

Are prices still rising or cooling in Penang as of 2026?

As of early 2026, house prices in Penang are generally stable to gently rising, with mass-market mainland terraces showing modest appreciation and prime island landed properties remaining resilient though more price-sensitive at the very top end.

The estimated year-over-year house price change in Penang sits at approximately 3% to 6% for most segments, with high-end properties in prime island locations having seen stronger growth of 7% to 10% in 2024 before moderating slightly into 2026.

Experts and local market participants expect Penang house prices to continue rising moderately at 3% to 5% annually over the next 6 to 12 months, supported by the LRT Mutiara Line development, continued urbanization, and steady demand from both local upgraders and foreign lifestyle buyers.

Finally, please note that we have covered property price trends and forecasts for Penang here.

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.