Is it worth it buying property in Penang in 2025?

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, Malaysia, 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 Malaysia. 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 Kuala Lumpur, Penang, and Johor Bahru. 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 types of properties can you buy in Penang right now?

You have several property options available in Penang's current market.

Landed properties include terrace houses, link houses, semi-detached homes, and bungalows across various townships. High-rise options encompass condominiums, apartments, and serviced residences with modern amenities and facilities.

Commercial properties like shop lots, office suites, and retail spaces are available for business-minded investors. You can also purchase residential land plots if you prefer building a custom home to your specifications.

New development launches continue throughout 2025, offering both landed and high-rise units in emerging townships with contemporary designs and green features. These projects focus on family-friendly layouts and sustainable living concepts.

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

Should you buy or rent in Penang in 2025?

Buying makes more financial sense if you plan to stay long-term or want investment exposure to Penang's appreciating property market.

Property values in prime areas have risen 6-12% annually, with landed homes seeing 7-10% appreciation in 2024. Rental yields average 3.3-4.2% for apartments in Georgetown, providing steady income streams for investors.

Renting offers greater flexibility and lower upfront costs, making it suitable for shorter stays or uncertain long-term plans. The high supply of condominiums keeps rental rates relatively stable, benefiting tenants.

Infrastructure projects like the LRT system and Silicon Island development will likely boost property values further, favoring buyers over renters in the medium term. City center and landed properties show the strongest demand from expats and young professionals.

How have property prices changed in Penang and what's the forecast?

Penang property prices have experienced significant growth over the past decade with continued upward momentum.

Historical data shows average house prices were around RM265,010 in 2010, having nearly doubled in the preceding five years. By 2024, high-rise units in prime areas saw 6-12% year-on-year price increases, with high-end properties above RM1 million rising 7-10%.

As of June 2025, condominiums in city centers average RM1,032 per square foot, while units outside the center cost around RM735 per square foot. Foreign buyers face minimum thresholds of RM800,000 for island condos and RM1.8 million for landed properties.

The forecast remains positive with prices expected to continue rising in prime and landed segments. New infrastructure projects including the LRT system and Silicon Island development will drive demand and boost property values across different areas.

What are the current trends in Penang's property market?

Penang's property market shows several strong trends driving growth and demand in 2025.

Prices are rising particularly in city center and high-end segments, fueled by both local and international buyer interest. The pandemic has increased demand for landed homes as buyers seek more space and privacy for remote work and family life.

New development launches continue with both affordable and luxury projects, emphasizing family-friendly designs and environmentally sustainable features. Developers focus on integrated townships with complete amenities and connectivity.

Buyer demand remains robust across affordable and upscale segments, with high occupancy rates in city centers and growing interest in suburban and mainland areas. The market shows healthy fundamentals with strong absorption rates and limited oversupply issues.

What's the step-by-step process for foreigners buying property in Penang?

1. **Research and choose your property and preferred area** based on your budget and investment goals2. **Engage a registered real estate agent** who specializes in foreign buyer transactions to avoid scams and ensure compliance3. **Verify your eligibility** as foreigners can buy freehold properties but must meet minimum price thresholds4. **Submit an offer to purchase** and pay the earnest deposit, typically 2-3% of the property value5. **Apply for mortgage financing** if needed, with foreign buyers eligible for 60-80% financing depending on financial standing6. **Sign the Sale & Purchase Agreement (SPA)** and pay the 10% deposit as stipulated in the contract7. **Apply for state authority consent** through your lawyer, which takes 2-4 months to process8. **Pay the remaining balance** according to the payment schedule outlined in your SPA9. **Complete all legal paperwork** including stamp duty (4% for foreigners), legal fees, and property registration10. **Take possession** of the property upon completion and issuance of the official title documents

Working with experienced professionals throughout this process is essential for smooth transactions and legal compliance.

Where can you find reliable property listings in Penang?

Several reputable platforms and professionals can help you find suitable properties in Penang's market.

Online property portals like PropertyGuru, iProperty, and NuProp offer comprehensive listings with detailed information, photos, and market data. Penang Property Talk provides local insights and community discussions about specific developments and areas.

Always work with registered real estate agents who hold valid licenses and specialize in expat and foreign buyer transactions. These professionals understand the legal requirements and can guide you through the complex purchase process.

Local realtors with established networks can provide access to off-market properties and negotiate better terms. Verify their credentials and choose agents with proven track records in your target price range and preferred areas.

What properties can you get across different budgets in Penang?

Penang's property market offers options across various budget ranges to suit different buyer profiles.

Budget Range (RM)	Property Types Available	Typical Locations
500,000 - 800,000	Mainland condos, small apartments	Seberang Perai, Air Itam
800,000 - 1,500,000	Mid-range condos, small landed homes	Bayan Baru, Batu Maung, Relau
1,500,000 - 3,000,000	Large condos, terrace houses, semi-detached	Tanjung Tokong, Gelugor, Jelutong
3,000,000+	Luxury condos, bungalows, prime landed	Pulau Tikus, Gurney Drive, Batu Ferringhi
Foreign minimum (Island)	RM800k condos, RM1.8M landed	Various island locations
Foreign minimum (Mainland)	RM400k strata, RM750k landed	Seberang Perai areas

Higher budgets unlock premium locations with better amenities, international school access, and stronger appreciation potential.

What common mistakes should you avoid when buying in Penang?

Avoiding these frequent pitfalls can save you significant money and legal complications.

Many buyers underestimate hidden costs including legal fees, stamp duty (4% for foreigners), maintenance charges, and renovation expenses. Budget an additional 10-15% beyond the purchase price for these unavoidable costs.

Never work with unregistered agents or brokers as this exposes you to scams and legal issues. Always verify agent credentials and choose professionals with proven experience in foreign buyer transactions.

Failing to research resale potential and rental demand can hurt long-term returns. Analyze area development plans, infrastructure projects, and demographic trends before committing to any location.

Not checking property titles, approvals, and legal status can lead to costly disputes. Ensure all documentation is legitimate and the property has proper approvals from relevant authorities.

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

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's the actual cost of living in Penang once you own property?

Penang offers an affordable cost of living compared to other major Southeast Asian cities.

Monthly utilities for an 85-square-meter apartment typically range from RM100-250, covering electricity, water, and garbage collection. Internet service costs RM99-170 monthly for reliable high-speed connections.

Grocery expenses for a couple average RM500-900 monthly, while dining out at local restaurants costs RM10-30 per meal. Transportation remains affordable with bus rides at RM2-3 and monthly public transport passes around RM75.

Property maintenance fees vary by development but typically range from RM200-500 monthly for condominiums with facilities. Property taxes and insurance add another RM100-300 monthly depending on property value and coverage.

Which neighborhoods in Penang are best for property investment?

Different Penang areas offer distinct advantages depending on your budget and investment strategy.

Affordable options include Air Itam, strategically located near Penang Hill with good connectivity, and Seberang Perai on the mainland offering lower entry prices and family-friendly environments.

Up-and-coming areas like Batu Maung benefit from ongoing infrastructure development and airport proximity, while Bayan Baru serves as a growing tech hub with modern amenities and shopping centers.

Upscale neighborhoods include Tanjung Tokong near international schools and shopping malls, Pulau Tikus with its colonial charm, and Gurney Drive featuring luxury condominiums and expat-friendly facilities.

Island areas command higher prices but offer better amenities and lifestyle options, while mainland locations provide better value but with less cosmopolitan atmosphere and longer commutes to the city center.

What's expat life like in Penang?

Penang provides an excellent quality of life for expatriates with strong community support and modern infrastructure.

The expat community is vibrant and well-established, particularly in city center areas and Tanjung Tokong, with regular social events, networking groups, and cultural activities organized by various international organizations.

Healthcare standards are excellent with world-class private hospitals and clinics staffed by qualified international doctors. Medical costs remain affordable compared to Western countries while maintaining high quality standards.

International schooling options include established institutions like Dalat International School and Tenby International School, offering international curricula and preparing students for global university admissions.

Infrastructure quality is generally good with reliable utilities, decent road networks, and improving public transportation. The lifestyle offers diverse food options, cultural events, and easy access to both urban amenities and natural attractions.

How profitable are long-term rentals in Penang?

Long-term rental investments in Penang offer moderate but stable returns with good tenant demand.

Georgetown apartments average 3.3-4.2% rental yields, which is slightly below Malaysia's national average but compensated by strong tenant demand and price stability. Prime city center locations command the highest rents and most consistent occupancy.

Best performing areas include city center, Tanjung Tokong, Gelugor, and Pulau Tikus where expats, young professionals, and international students create steady rental demand.

Tenants typically prefer modern condominiums with amenities, proximity to workplaces, international schools, and shopping centers. A three-bedroom city center condominium can generate RM2,700-4,500 monthly rental income depending on location and facilities.

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

What about short-term rental opportunities and restrictions?

Short-term rental regulations in Penang are strict with specific limitations on residential properties.

Only commercial high-rise buildings on Penang Island can legally operate short-term rentals like Airbnb, while residential condominiums are strictly prohibited from such activities under current municipal guidelines.

Commercial units require Joint Management Body or Management Corporation approval with a 75% majority vote, annual licensing fees, and proper council registration to operate legally as short-term accommodations.

Tourist zones near attractions, beaches, and city centers offer the best potential for short-term rentals, with guests typically seeking central locations, sea views, modern amenities, and easy access to popular destinations.

Income potential varies significantly based on occupancy rates, seasonal demand, and property location, but properly managed units in prime areas can generate higher returns than traditional long-term rentals during peak tourism periods.

So should you buy property in Penang in 2025 or wait?

Buying property in Penang in 2025 makes financial sense for specific buyer profiles and investment strategies.

You should buy if you seek long-term capital appreciation, want a stable home base, or plan to rent to expats and young professionals. Prime areas and landed properties show strong upward trends, and infrastructure projects will likely boost values further over the next few years.

Consider waiting if you need maximum flexibility, remain uncertain about long-term plans, or prefer avoiding substantial upfront costs. The rental market currently favors tenants with stable pricing and good availability.

The overall market fundamentals are positive with steady price growth, strong rental demand in prime areas, and supportive government policies for property development. Foreign buyers who meet minimum purchase requirements and choose well-located properties should see good returns over a 5-10 year investment horizon.

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. PropertyGuru Malaysia - Penang Properties
2. NuProp - Penang 2025 Completions
3. Global Property Guide - Malaysia Price History
4. BambooRoutes - Penang Real Estate Forecasts
5. The Star - High-end Units in Penang
6. International Living - Cost of Living Malaysia
7. The Star - Penang Condominium Prices
8. Penang Institute - Housing Market Trends
9. Numbeo - Cost of Living Penang
10. NewPages - Property Buying Guide