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's real estate market in 2026 is steady but selective, with landed homes holding firm while high-rise condos offer more room to negotiate.
This blog post covers the current housing prices in Penang, and we constantly update it to reflect the latest market conditions.
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.
How's the real estate market going in Penang in 2026?
What's the average days-on-market in Penang in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Penang is roughly 70 to 100 days for a typical resale listing.
This range covers most situations, but well-priced family condos in convenient locations like Jelutong or Gelugor often sell in about 60 to 90 days, while premium sea-view units in Tanjung Bungah can sit for 120 days or more if priced too high.
Compared to one or two years ago, the current days-on-market in Penang has remained relatively stable, with no major speedup or slowdown, which reflects a balanced market where neither buyers nor sellers have overwhelming leverage.
Are properties selling above or below asking in Penang in 2026?
As of early 2026, most resale homes in Penang close at roughly 3% to 7% below the last asking price, meaning buyers generally have some negotiation room.
We estimate that fewer than 10% of properties in Penang sell above asking, while the vast majority close at or below the listed price, and we are fairly confident in this assessment given the stable-to-soft pricing environment reported by official sources.
The property types most likely to see above-asking sales in Penang are scarce landed homes in high-demand family neighborhoods like Sungai Ara or Bayan Baru, where limited supply meets strong owner-occupier interest.
By the way, you will find much more detailed data in our property pack covering the real estate market in Penang.
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 kinds of residential properties can I realistically buy in Penang?
What property types dominate in Penang right now?
In Penang, the estimated breakdown of residential property types available for sale is roughly 60% high-rise condos and serviced apartments, 25% terrace and semi-detached homes, and 15% other formats like bungalows or shophouses.
The single property type representing the largest share of the Penang market is high-rise condos, which dominate the island's inventory, especially in areas like George Town, Jelutong, Tanjung Tokong, and Bayan Lepas.
High-rise condos became so prevalent in Penang because the island has limited land, and vertical development is the only practical way to meet housing demand without sprawling into protected hills or agricultural zones.
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?
Are new builds widely available in Penang right now?
New-build properties make up a significant share of residential listings in Penang, estimated at around 30% to 40% of available inventory, which gives buyers plenty of choice and often some negotiating power with developers.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Penang include Bayan Lepas near the airport, Jelutong along the eastern corridor, and on the mainland, areas like Bukit Mertajam and Alma are seeing active launches.
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Which neighborhoods are improving fastest in Penang in 2026?
Which areas in Penang are gentrifying in 2026?
As of early 2026, the top neighborhoods in Penang showing the clearest signs of gentrification include Jelutong along Sungai Pinang, the fringes of George Town's UNESCO zone, and selected pockets of Butterworth near Penang Sentral on the mainland.
In these areas of Penang, you can see visible changes like new specialty coffee shops and co-working spaces popping up in Jelutong, heritage shophouse renovations turning into boutique hotels near George Town, and younger professionals moving into upgraded apartments around Raja Uda in Butterworth.
The estimated price appreciation in these gentrifying Penang neighborhoods over the past two to three years has been roughly 8% to 15% cumulatively, though this varies by street and building condition.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.
Where are infrastructure projects boosting demand in Penang in 2026?
As of early 2026, the top areas in Penang where major infrastructure projects are boosting housing demand include the LRT Mutiara Line corridor running from KOMTAR through Bayan Lepas, and neighborhoods near Penang International Airport.
The specific infrastructure projects driving demand in Penang are the LRT Mutiara Line, which will connect George Town to the airport, and the Penang International Airport expansion, which is adding capacity for more passengers and cargo.
The estimated timeline for these major Penang projects is that the airport upgrade works are scheduled to continue through 2029, while the LRT Mutiara Line is in early construction phases with full operation expected in the early 2030s.
In Penang, the typical price impact on nearby properties is around 5% to 10% uplift when infrastructure projects are announced, with an additional 10% to 20% gain possible once projects are completed and operational.
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.
What do locals and insiders say the market feels like in Penang?
Do people think homes are overpriced in Penang in 2026?
As of early 2026, the general sentiment among locals and market insiders in Penang is mixed: many feel that prime island addresses with sea views are overpriced, while mainland properties and non-premium condos seem fairly valued or even negotiable.
When arguing that Penang homes are overpriced, locals typically point to stagnant wage growth compared to property prices, the difficulty young couples face affording a first home on the island, and the number of unsold condo units sitting empty in certain developments.
Those who believe Penang prices are fair counter that island land is genuinely scarce, that the job market around Bayan Lepas supports real demand, and that compared to Singapore or even Kuala Lumpur's prime areas, Penang still offers relative value.
The price-to-income ratio in Penang is estimated at around 5 to 6 times the median household income, which is slightly higher than Malaysia's national average but lower than Kuala Lumpur's ratio, placing Penang in a "stretched but not extreme" affordability zone.
What are common buyer mistakes people regret in Penang right now?
The most frequently cited buyer mistake in Penang is underestimating traffic and bridge dependence, where a home that looks close on a map can feel painfully far during peak hours, especially if your daily routine involves crossing the Penang Bridge or navigating island choke points.
The second most common regret in Penang is buying a sea-view condo without properly checking the building's maintenance quality, because salt air accelerates wear on facades and equipment, and a poorly managed sinking fund can lead to surprise fees or deteriorating common areas.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Penang.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Penang.
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How easy is it for foreigners to buy in Penang in 2026?
Do foreigners face extra challenges in Penang right now?
The estimated overall difficulty level for foreigners buying property in Penang is moderate to high compared to local buyers, mainly because of additional approval steps, higher minimum price thresholds, and longer transaction timelines.
In Penang, foreign buyers must obtain State Authority consent before completing a purchase, face minimum price thresholds that are typically RM1 million or higher depending on the property type, and cannot buy certain categories like Malay Reserved Land.
Beyond the legal requirements, practical challenges foreigners commonly encounter in Penang include navigating documents that are often in Bahasa Malaysia, dealing with property agents who may not be experienced with foreign transactions, and managing time zone differences if you are coordinating remotely from overseas.
We will tell you more in our blog article about foreigner property ownership in Penang.
Do banks lend to foreigners in Penang in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Penang, but options are more limited and terms are stricter than what Malaysian citizens receive.
Foreign buyers in Penang can typically expect loan-to-value ratios of around 60% to 70%, meaning you will need a 30% to 40% down payment, and interest rates tend to run about 0.5% to 1% higher than rates offered to locals.
Banks in Penang typically require foreign applicants to provide proof of stable overseas income, employment verification, tax returns from their home country, and sometimes a local Malaysian bank account or reference.
You can also read our latest update about mortgage and interest rates in Malaysia.
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.
How risky is buying in Penang compared to other nearby markets?
Is Penang more volatile than nearby places in 2026?
As of early 2026, Penang's price volatility is estimated to be moderate, sitting between the relative stability of mature Kuala Lumpur neighborhoods and the higher swings sometimes seen in Johor Bahru's investor-driven condo market.
Over the past decade, Penang has experienced gentler price swings than Johor Bahru, which saw sharper corrections after oversupply phases, while Kuala Lumpur's prime areas have been more stable but also more expensive to enter.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Penang.
Is Penang resilient during downturns historically?
Penang has shown relatively good historical resilience during economic downturns, largely because its job base in electronics manufacturing and services provides a floor of owner-occupier demand that keeps the market from collapsing.
During the most recent major downturn around 2020, Penang property prices dipped by roughly 3% to 5% in affected segments and recovered within about 18 to 24 months, which is faster than some other Malaysian markets.
In Penang, the property types and neighborhoods that have historically held value best during downturns are landed homes in established family areas like Sungai Ara, Bayan Baru, and parts of Tanjung Tokong, while investor-heavy high-rise condos tend to soften more.
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How strong is rental demand behind the scenes in Penang in 2026?
Is long-term rental demand growing in Penang in 2026?
As of early 2026, long-term rental demand in Penang is stable to mildly growing, supported by steady employment in the Bayan Lepas industrial zone and ongoing demand from students and staff near Universiti Sains Malaysia in Gelugor.
The tenant demographics driving long-term rental demand in Penang include young professionals working in electronics and manufacturing, university students and academic staff, expats on corporate assignments, and healthcare workers near major hospitals in George Town.
The neighborhoods in Penang with the strongest long-term rental demand right now are Bayan Lepas for its proximity to factories and the airport, Gelugor for university-related tenants, and George Town for expats and professionals who want urban convenience.
You might want to check our latest analysis about rental yields in Penang.
Is short-term rental demand growing in Penang in 2026?
Short-term rental regulations in Penang depend heavily on individual building management rules, with some condominiums actively restricting or banning Airbnb-style rentals, so you need to check your specific building's bylaws before assuming you can operate.
As of early 2026, short-term rental demand in Penang appears to be stable to slightly growing, supported by the recovery of tourism to pre-pandemic levels and continued interest from regional visitors.
The current estimated average occupancy rate for short-term rentals in Penang is around 40% to 50% across the year, though this varies significantly by location, with George Town and Batu Ferringhi performing better than less touristy areas.
The guest demographics driving short-term rental demand in Penang include domestic Malaysian tourists, regional visitors from Singapore and Indonesia, digital nomads attracted to the low cost of living, and food tourists exploring Penang's famous street food scene.
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 are the realistic short-term and long-term projections for Penang in 2026?
What's the 12-month outlook for demand in Penang in 2026?
As of early 2026, the 12-month demand outlook for residential property in Penang is steady, with most analysts expecting transaction volumes to remain stable and no major surge or drop anticipated.
The key factors most likely to influence Penang property demand over the next 12 months include the central bank's interest rate decisions, employment trends in the electronics sector, and whether infrastructure projects like the LRT show visible progress.
The forecasted price movement for Penang residential property over the next 12 months is roughly 0% to 4% growth, with scarce landed homes potentially outperforming while high-rise condos in oversupplied areas may stay flat.
By the way, we also have an update regarding price forecasts in Malaysia.
What's the 3-5 year outlook for housing in Penang in 2026?
As of early 2026, the 3 to 5 year outlook for Penang housing is moderately positive, with cumulative price growth of roughly 10% to 25% expected by 2030, though gains will be uneven across different submarkets and property types.
The major development projects expected to shape Penang over the next 3 to 5 years include the LRT Mutiara Line transforming commuting patterns, the expanded Penang International Airport boosting business and tourism traffic, and continued industrial investment in Bayan Lepas drawing more workers.
The single biggest uncertainty that could alter Penang's 3 to 5 year outlook is a major downturn in the global electronics industry, which could reduce employment in Bayan Lepas and weaken both rental and purchase demand across the state.
Are demographics or other trends pushing prices up in Penang in 2026?
As of early 2026, demographic trends have a moderate but real impact on Penang housing prices, mainly through internal migration from other Malaysian states and steady demand from professionals relocating for jobs.
The specific demographic shifts most affecting Penang prices are the continued inflow of working-age adults to the Bayan Lepas industrial corridor, slower but persistent household formation among younger Penangites, and a small but visible expat community drawn to the island's lifestyle.
Beyond demographics, non-demographic trends pushing Penang prices include the rise of remote work making the island attractive to digital nomads, growing interest from Singaporean investors seeking more affordable property, and lifestyle upgrades as Penang's food and cultural scene gains international recognition.
These demographic and trend-driven price pressures in Penang are expected to continue for at least the next 5 to 10 years, as long as the industrial job base remains strong and the island maintains its quality-of-life advantages over other Malaysian cities.
What scenario would cause a downturn in Penang in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Penang would be a significant global slowdown in electronics demand leading to factory closures or layoffs in Bayan Lepas, combined with rising interest rates that squeeze affordability.
Early warning signs that such a downturn is beginning in Penang would include rising vacancy rates in industrial worker housing, longer days-on-market across all property types, aggressive price cuts from developers trying to clear unsold condo stock, and local media reporting layoffs at major manufacturers.
Based on historical patterns, a potential downturn in Penang could realistically see prices drop by 5% to 15% over 12 to 24 months in the most affected segments, with high-rise condos in oversupplied areas suffering more than landed homes in established family neighborhoods.
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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 We Trust It | How We Used It |
|---|---|---|
| NAPIC (National Property Information Centre) | It is Malaysia's official real estate data hub run by the government's Valuation and Property Services Department. | We used it as the backbone for Penang transaction and market status context. We cross-checked private reports against NAPIC data wherever possible. |
| Bank Negara Malaysia (OPR Data) | It is the central bank's own data feed for monetary policy rates that directly affect mortgage costs. | We used it to anchor mortgage rate conditions in January 2026. We then inferred how borrower affordability affects demand. |
| Department of Statistics Malaysia (DOSM) | It is Malaysia's official statistics agency responsible for population and economic data. | We used it to ground demand drivers like population growth and migration patterns. We used it to explain why certain corridors have strong rental demand. |
| Penang Institute | It is a respected state-linked research institute presenting structured socioeconomic indicators for Penang. | We used it to triangulate Penang's economic and demographic backdrop. We tied housing demand to jobs and cost-of-living trends. |
| Brickz | It compiles real transacted price signals that reflect completed deals, not just listing prices. | We used it to estimate realistic price bands and market liquidity. We used it as a reality check against marketing prices. |
| Knight Frank Research | Knight Frank is a long-established global real estate consultancy with a formal research practice. | We used it to triangulate market sentiment and supply demand dynamics in Penang. We treated it as a professional lens layered on official data. |
| LRT Mutiara Line Official Site | It is an official project information site describing the alignment and hubs served by the new transit line. | We used it to identify which neighborhoods could get a demand boost. We treated it as infrastructure reality rather than rumor. |
| CAAM (Civil Aviation Authority Malaysia) | It is a regulator-grade operational notice that confirms project timing and phases for the airport. | We used it to verify the airport upgrade timeline. We tied airport works to tourism and business travel demand corridors. |
| Penang Bar Conveyancing Guidelines | It is produced by a professional legal body and summarizes Penang-specific practice guidance for property transactions. | We used it to explain what foreigners must do to buy in Penang. We used it to flag friction points that buyers often underestimate. |
| Tourism Malaysia Accommodation Survey | It is official tourism performance data used widely for tracking visitor demand. | We used it as a proxy for short-term rental demand strength. We cross-checked STR claims against hotel occupancy figures. |
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