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Everything you need to know before buying real estate is included in our Malaysia Property Pack
If you're curious about how much it costs to buy a home in Penang, you've come to the right place.
We break down the current housing prices in Penang, from entry-level apartments to luxury sea-view condos, and we constantly update this blog post with the latest data.
Whether you're a first-time buyer or looking for an investment property, this guide will help you understand what to expect.
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
- The median housing price in Penang in 2026 is around RM 362,500, which is about 27% lower than the average price of RM 494,000, showing how a few expensive properties pull the average up significantly.
- Penang's property prices have grown roughly 55% over the past 10 years in nominal terms, but only about 25% when you account for inflation, meaning real gains have been more modest than they first appear.
- New homes in Penang typically cost about 15% more than comparable existing properties, a premium buyers pay for modern layouts, better facilities, and lower immediate maintenance costs.
- About half of all Penang property transactions are condos and apartments, much higher than most Malaysian states, because the island simply doesn't have enough land for landed homes.
- Tanjung Tokong's median price per square foot is RM 571, roughly 50% higher than Penang's overall median of RM 380, reflecting the premium buyers pay for coastal living and expat-friendly amenities.
- Mass-market homes in Penang typically sell for about 6% below listing price, while luxury properties see discounts closer to 10%, as negotiation room is built into asking prices.
- Adding renovation, taxes, and fees to your Penang property purchase usually means budgeting an extra 7% to 12% on top of the purchase price.
- The cheapest neighborhoods in Penang, like Balik Pulau and parts of the mainland, offer properties at RM 240 to 360 per square foot, roughly half the price of premium coastal areas.
What is the average housing price in Penang in 2026?
The median housing price is more useful than the average because it tells you what a typical buyer actually pays, without being skewed upward by a small number of very expensive luxury properties.
We are writing this as of the first half of 2026 using the latest transaction data from Malaysia's official property statistics agency (NAPIC) and the Brickz transaction database, both of which we manually verified.
The median housing price in Penang in 2026 is RM 362,500, which converts to approximately $89,000 or €76,000. The average housing price in Penang in 2026 is higher at RM 494,000, which is about $122,000 or €104,000.
About 80% of residential properties in Penang in 2026 are priced between RM 200,000 and RM 900,000, or roughly $49,000 to $222,000.
A realistic entry-level budget in Penang starts at RM 200,000 to RM 320,000 ($49,000 to $79,000 or €42,000 to €67,000), which can get you an older walk-up apartment of 65 to 80 square meters in areas like Ayer Itam or parts of mainland Seberang Perai.
Luxury properties in Penang in 2026 typically range from RM 1.8 million to RM 6 million ($444,000 to $1.5 million or €377,000 to €1.3 million), and for that you can expect a high-end sea-view condo of 140 to 220 square meters in Tanjung Tokong or Tanjung Bungah, or a landed home in a prime island neighborhood.
By the way, you will find much more detailed price ranges in our property pack covering the real estate market in Penang.
Are Penang property listing prices close to the actual sale price in 2026?
In Penang in 2026, mass-market homes typically sell for about 6% below the listing price, while luxury properties often close at around 10% below asking price.
This gap exists because agents and sellers build negotiation room into their asking prices, especially for older properties where buyers expect to bargain. The difference is larger for luxury homes because bank valuations and buyer affordability often pull final prices down when initial listings are optimistic.
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What is the price per sq m or per sq ft for properties in Penang in 2026?
As of early 2026, the median housing price in Penang is RM 380 per square foot (RM 4,090 per square meter), which equals about $94 per square foot ($1,010 per square meter) or €80 per square foot (€860 per square meter). The average price per square foot in Penang is estimated at RM 410 to 470 (RM 4,400 to 5,060 per square meter), or roughly $101 to $116 per square foot ($1,090 to $1,250 per square meter).
Modern high-rise condos with sea views in Penang have the highest price per square meter because of location scarcity and lifestyle amenities, while older walk-up flats and mainland mass-market terraces have the lowest prices due to their age and distance from premium job centers.
The highest prices per square meter in Penang in 2026 are found in Tanjung Tokong, Tanjung Bungah, and Batu Ferringhi, where you can expect RM 520 to 900 per square foot (RM 5,600 to 9,700 per square meter). The lowest prices are in Balik Pulau and parts of Seberang Perai on the mainland, where properties typically sell for RM 240 to 360 per square foot (RM 2,580 to 3,875 per square meter).
How have property prices evolved in Penang?
Compared to one year ago, Penang property prices in 2026 have risen by about 2% in nominal terms, but when adjusted for inflation, they're only up around 0.5%, meaning they've been essentially flat in real terms. This modest growth reflects affordability constraints for most buyers, even as prime coastal areas hold their value better than older, oversupplied neighborhoods.
Looking back 10 years, Penang property prices have increased approximately 55% in nominal terms since 2016, but only about 25% after accounting for inflation. This long-term growth was driven by land scarcity on the island, income growth, urbanization, and infrastructure improvements that made good addresses more valuable over time.
By the way, we've written a blog article detailing the latest updates on property price variations in Penang.
Finally, if you want to know whether now is a good time to buy a property there, you can check our pack covering everything there is to know about the housing 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 types of homes are available in Penang and how much do they cost in 2026?
In Penang in 2026, about 50% of properties on the market are condos and apartments, 30% are terrace houses, 8% are semi-detached homes, 5% are detached bungalows, 5% are low-cost flats, and 2% are townhouses or other types. This heavy skew toward high-rise living happens because Penang island simply doesn't have enough land to build more landed properties.
Average prices by property type in Penang in 2026 are: condos and apartments at RM 420,000 ($104,000 or €88,000), terrace houses at RM 520,000 ($128,000 or €109,000), semi-detached homes at RM 900,000 ($222,000 or €189,000), detached bungalows at RM 1.6 million ($395,000 or €336,000), low-cost flats at RM 220,000 ($54,000 or €46,000), and townhouses at RM 650,000 ($160,000 or €136,000).
If you want to know more, you should read our dedicated analyses:
- How much should you pay for a house in Penang?
- How much should you pay for an apartment in Penang?
- How much should you pay for a condo in Penang?
How do property prices compare between existing and new homes in Penang in 2026?
New homes in Penang in 2026 typically cost about 15% more than comparable existing properties in the same location and of similar size.
This premium exists because new builds come with modern layouts, updated facilities like pools and gyms, secure parking, and lower immediate maintenance costs, while older properties often need renovation work that buyers factor into their offers.
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How do property prices vary by neighborhood in Penang in 2026?
Tanjung Tokong is one of the most popular neighborhoods among expats in Penang, known for its coastal condos with full facilities, proximity to restaurants and shopping, and easy beach access. Property prices in Tanjung Tokong in 2026 range from RM 900,000 to RM 2 million ($222,000 to $493,000), reflecting the strong demand for lifestyle living and sea views in this area.
Tanjung Bungah attracts families looking for a quieter coastal environment with good access to international schools and a mix of condos and landed homes. In January 2026, property prices in Tanjung Bungah range from RM 850,000 to RM 2.5 million ($210,000 to $617,000), with the higher end representing larger landed properties or premium condos.
Ayer Itam offers budget-friendly options for buyers looking to enter the Penang property market, with older apartments and flats in established local neighborhoods. Prices in Ayer Itam in 2026 range from RM 220,000 to RM 550,000 ($54,000 to $136,000), making it one of the most affordable areas on Penang island for first-time buyers.
You will find a much more detailed analysis by areas in our property pack about Penang. Meanwhile, here is a quick summary table we have made so you can understand how prices change across areas:
| Neighborhood | Character | Avg Price Range | Avg per sqm | Avg per sqft |
|---|---|---|---|---|
| Tanjung Tokong | Expat / coastal / amenities | RM 900k-2.0M / $222k-$493k | RM 6,000-9,500 / $1,480-$2,344 | RM 560-880 / $138-$217 |
| Tanjung Bungah | Family / schools / coastal | RM 850k-2.5M / $210k-$617k | RM 5,500-9,000 / $1,357-$2,221 | RM 510-840 / $126-$207 |
| Batu Ferringhi | Luxury / resort | RM 1.2M-3.5M / $296k-$864k | RM 6,500-10,500 / $1,604-$2,590 | RM 600-980 / $148-$242 |
| George Town (core) | Heritage / walkability | RM 600k-1.6M / $148k-$395k | RM 5,000-8,500 / $1,233-$2,098 | RM 465-790 / $115-$195 |
| Gelugor | Commute / central | RM 550k-1.2M / $136k-$296k | RM 4,600-7,000 / $1,135-$1,727 | RM 430-650 / $106-$160 |
| Jelutong | Value / central-ish | RM 420k-900k / $104k-$222k | RM 3,800-6,000 / $938-$1,480 | RM 350-560 / $86-$138 |
| Bayan Lepas | Jobs / airport / tech | RM 450k-1.0M / $111k-$247k | RM 3,900-6,500 / $963-$1,604 | RM 360-600 / $89-$148 |
| Sungai Ara | Family / value | RM 380k-850k / $94k-$210k | RM 3,500-5,800 / $864-$1,431 | RM 325-540 / $80-$133 |
| Ayer Itam | Entry / local | RM 220k-550k / $54k-$136k | RM 2,600-4,400 / $641-$1,085 | RM 240-410 / $59-$101 |
| Balik Pulau | Landed / green / value | RM 350k-900k / $86k-$222k | RM 2,900-4,800 / $716-$1,184 | RM 270-450 / $67-$111 |
| Butterworth (mainland) | Commute / value | RM 280k-650k / $69k-$160k | RM 2,400-4,200 / $592-$1,036 | RM 225-390 / $56-$96 |
| Bukit Mertajam (mainland) | Family / landed value | RM 350k-900k / $86k-$222k | RM 2,700-4,800 / $666-$1,184 | RM 250-450 / $62-$111 |
How much more do you pay for properties in Penang when you include renovation work, taxes, and fees?
When buying property in Penang in 2026, you should budget an additional 7% to 12% on top of the purchase price to cover stamp duty, legal fees, loan costs, and any renovation work.
If you buy a property around $200,000 (RM 810,000) in Penang, you can expect to pay roughly RM 65,000 to 97,000 ($16,000 to $24,000) in additional costs. This includes stamp duty, legal fees for the sale agreement, loan-related fees if you're financing, and possibly some light renovation for an older unit.
For a property around $500,000 (RM 2 million) in Penang, additional costs typically range from RM 160,000 to 240,000 ($39,000 to $59,000). At this price point, you're likely buying a nicer condo or landed home that may need less renovation, but stamp duty and legal fees scale up with the purchase price.
If you're buying a property around $1,000,000 (RM 4.05 million) in Penang, expect to add approximately RM 280,000 to 485,000 ($69,000 to $120,000) for all closing costs and potential upgrades. Premium properties often involve higher renovation budgets if buyers want to customize finishes to their taste.
Meanwhile, here is a detailed table of the additional expenses you may have to pay when buying a new property in Penang
| Expense | Category | Estimated Cost Range (MYR / USD) |
|---|---|---|
| Stamp duty on transfer | Tax | Approximately 1% to 4% of the purchase price, calculated on a progressive scale. For a RM 500,000 property, expect around RM 9,000 ($2,200). Higher-priced properties pay a higher effective rate. |
| Legal fees (Sale and Purchase Agreement) | Fees | Typically 0.5% to 1.0% of the purchase price, charged on a tiered basis. For a RM 800,000 property, this works out to roughly RM 4,000 to 8,000 ($1,000 to $2,000). |
| Loan legal fees and stamp duty | Fees / Tax | If you're taking a mortgage, budget around 0.5% or more of the loan amount for legal fees and loan stamp duty. On a RM 600,000 loan, this adds roughly RM 3,000 to 5,000 ($740 to $1,230). |
| Valuation and bank processing | Fees | Banks charge RM 1,000 to 3,000 ($250 to $740) for property valuation and loan processing. This is usually a fixed cost regardless of property price. |
| Light renovation or refresh | Renovation | For older properties needing basic updates like painting and minor repairs, expect RM 10,000 to 30,000 ($2,500 to $7,400). This keeps the home livable without major changes. |
| Medium renovation | Renovation | Updating kitchens, bathrooms, flooring, and built-in furniture typically costs RM 40,000 to 120,000 ($9,900 to $29,600). Most resale condos fall into this category if you want modern finishes. |
| Heavy renovation or full remodel | Renovation | Complete overhauls including layout changes, premium materials, and custom work start at RM 150,000 ($37,000) and can go much higher. This is common for older landed properties or luxury upgrades. |
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 properties can you buy in Penang in 2026 with different budgets?
With $100,000 (RM 405,000) in Penang as of the first half of 2026, you can buy an existing 2 to 3 bedroom apartment of 85 to 95 square meters in Sungai Ara, a small older condo of 70 to 85 square meters in Bayan Lepas, or an older terrace house of 120 to 140 square meters in Butterworth on the mainland.
With $200,000 (RM 810,000) in Penang, you can afford an existing mid-range condo of 100 to 120 square meters in Gelugor with decent facilities, an existing terrace house of 140 to 170 square meters in Bukit Mertajam for families, or a larger condo of 120 to 150 square meters in Jelutong on a higher floor.
With $300,000 (RM 1.22 million) in Penang, your options include a newer condo of 120 to 160 square meters in Tanjung Tokong (not top-tier but solid), a semi-detached home of 180 to 240 square meters in Bukit Mertajam, or a larger city-fringe condo of 150 to 190 square meters near George Town with an upgraded interior.
With $500,000 (RM 2 million) in Penang, you can purchase a premium sea-view condo of 150 to 220 square meters in Tanjung Tokong with newer facilities, a landed home of 220 to 320 square meters in the Tanjung Bungah area, or a lifestyle condo of 140 to 200 square meters in Batu Ferringhi with coastal orientation.
With $1,000,000 (RM 4.05 million) in Penang, you enter the high-end market with options like a waterfront condo of 220 to 320 square meters in a top Tanjung Tokong development, a prime landed home of 350 to 500 square meters in Tanjung Bungah, or a luxury landed property or large sea-view condo in Batu Ferringhi.
With $2,000,000 (RM 8.1 million) in Penang, you're looking at a thin, highly location-specific market that includes ultra-premium penthouses of 350 square meters or more with sea views in Tanjung Tokong, prime bungalows in scarce island enclaves where land value drives pricing, or trophy properties in Batu Ferringhi with exceptional views and access.
If you need a more detailed analysis, we have a blog article detailing what you can buy at different budget levels in Penang.
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 (National Property Information Centre) | Malaysia's official property statistics unit under the Ministry of Finance, providing authoritative government data on real estate transactions. | We used NAPIC as our primary anchor for Penang's average transacted house price and price trends. We also used their breakdown by housing type to verify our market range estimates. |
| Brickz (Penang Residential) | An established transaction-price database in Malaysia with transparent methodology showing last-12-month data and percentile statistics. | We used Brickz to estimate median transacted prices and the typical market band (25th to 75th percentile) in Penang. We cross-checked these against NAPIC's official averages to ensure consistency. |
| Brickz (Tanjung Tokong) | The same reliable transaction-based methodology applied to a specific high-demand neighborhood, useful for understanding premium pricing. | We used Tanjung Tokong data to anchor what high-range coastal pricing looks like in real transactions. We then scaled other neighborhood estimates around this reference point. |
| Bank Negara Malaysia (BNM) | Malaysia's central bank and the most reliable reference for official MYR exchange rates. | We used BNM's late December 2025 reference rate to convert all MYR figures to USD. We keep our exchange rate assumption explicit so readers can verify our calculations. |
| European Central Bank (ECB) | The euro area central bank that publishes daily reference rates with clear timestamps and methodology. | We used the ECB's late December 2025 EUR/MYR rate to convert prices to euros. This avoids relying on unclear third-party exchange rate sources. |
| Department of Statistics Malaysia (DOSM) | Malaysia's official statistics agency responsible for publishing the country's Consumer Price Index and inflation data. | We used DOSM's CPI releases to frame inflation-corrected price comparisons. This helps readers understand how much of price growth is real versus just general inflation. |
| OpenDOSM (CPI Annual Series) | The official open-data portal documenting Malaysia's CPI annual index with clear methodology and base year information. | We used OpenDOSM to confirm CPI definitions and the base year. This ensures our inflation adjustments are conceptually correct when translating nominal to real price changes. |
| REHDA Institute | A respected real estate industry research body that publishes NAPIC-attributed market structure data widely used in industry briefings. | We used their NAPIC Property Market Report summary for transaction price-band structure. This helped us calibrate what share of the market falls below RM 300k, RM 500k, and so on. |
| CBRE Malaysia | A major global real estate consultancy that publishes market snapshots referencing official NAPIC figures. | We used CBRE's Penang market snapshot to validate transaction activity context. This kept our narrative consistent with professional market commentary on what's actively trading. |
| LHDN (Inland Revenue Board Malaysia) | The government tax authority responsible for stamp duty schedules and property tax regulations. | We used LHDN's published stamp duty rates to calculate buyer-side transaction costs. This ensures our additional expense estimates reflect current tax requirements. |
| JPPH (Valuation and Property Services Department) | The government department under the Ministry of Finance that oversees property valuation standards nationwide. | We referenced JPPH guidelines to understand how bank valuations affect final transaction prices. This helped explain the gap between listing and closed prices. |
| Penang Property Talk | A well-established local property forum and news site with insights from agents, developers, and buyers in the Penang market. | We used discussions and market observations to understand local buyer behavior and negotiation patterns. This grounded our estimates in real Penang market dynamics. |
| EdgeProp Malaysia | A reputable property news and data platform owned by The Edge Media Group, covering Malaysian real estate with professional analysis. | We cross-referenced EdgeProp's Penang market reports to validate neighborhood-level pricing trends. This added another data point to our transaction-based estimates. |
| PropertyGuru Malaysia | Malaysia's largest property listing portal with extensive data on asking prices across all neighborhoods. | We compared PropertyGuru listing prices against Brickz transaction data to estimate the gap between asking and closing prices. This informed our 6% to 10% discount estimates. |
| iProperty Malaysia | A major property portal with market insights, price guides, and listing data covering Penang extensively. | We used iProperty's neighborhood guides to verify our characterizations of different areas. This ensured our labels like "expat-friendly" or "family-oriented" reflect actual market perception. |
| Bank Negara Malaysia (Monetary Policy) | The central bank sets monetary policy that directly affects mortgage rates and housing affordability in Malaysia. | We referenced BNM's policy rate context to explain why price growth has been modest. Higher financing sensitivity keeps mass-market Penang prices in check. |
| Khazanah Research Institute | Malaysia's sovereign wealth fund research arm that publishes rigorous housing affordability studies. | We used Khazanah's affordability framework to contextualize why Penang's entry-level market clusters around certain price points. This grounded our "realistic entry range" estimates. |
| Penang State Government | The official state government portal with information on local policies, land matters, and development plans. | We referenced state policies to understand land scarcity constraints on Penang island. This explains why high-rise development dominates the market structure. |
| The Edge Markets | Malaysia's leading financial news publication with in-depth property sector coverage and market analysis. | We used The Edge's property market reports to verify year-over-year price movement claims. This ensured our trend estimates align with professional market tracking. |
| MyStats Portal (DOSM) | The official statistics portal providing demographic and economic data relevant to housing demand analysis. | We used population and income data to contextualize housing demand in Penang. This helped explain why certain neighborhoods command premium prices. |
| Securities Commission Malaysia | The financial regulator overseeing capital markets, including real estate investment trusts and property funds. | We referenced SC publications to understand institutional investment flows into Penang property. This provided context on demand drivers beyond individual buyers. |
| World Bank Malaysia | An international institution providing macroeconomic analysis and long-term development assessments for Malaysia. | We used World Bank economic outlook data to frame the broader context for Penang property investment. This helped explain decade-long price appreciation drivers. |
| International Monetary Fund (IMF) | A global financial institution that publishes authoritative economic forecasts and analyses for member countries. | We referenced IMF inflation and GDP data for Malaysia to validate our real versus nominal price growth calculations. This ensures our long-term comparisons are methodologically sound. |
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