Buying real estate in Penang?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

9 statistics for the Penang real estate market in 2025

Last updated on 

Authored by the expert who managed and guided the team behind the Malaysia Property Pack

buying property foreigner Malaysia

Everything you need to know before buying real estate is included in our Malaysia Property Pack

What do the latest numbers reveal about Penang’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?

We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Penang, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.

Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.

How this content was created 🔎📝

At BambooRoutes, we study the Penang 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 throughout the place. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

When working on this content, we started by gathering insights from these conversations and our own observations. But we didn’t stop there. To make sure our statistics and data are reliable, we also dug into trusted sources like NAR, Consumer Affairs, and EdgeProp (among many others).

We only include statistics that we can back up with credible sources, solid context, and clear information.

If we can’t find enough supporting data or context, we leave them out. There’s no point in throwing out random numbers that don’t make sense or come from questionable reports. Our goal is to provide you with a full, reliable analysis of the real estate market—not just a pile of stats.

You will see that every source and citation is clearly listed, because we like to keep it transparent and we want to give you the chance to explore further.

We also use a bit of AI, but only during the writing phase. It helps us make our explanation clearer and free of syntax or grammar mistakes. We believe you prefer it this way, right?

You will also see that our team crafted bespoke infographics that aggregate, summarize, and visualize key data trends, turning complex insights into clear, impactful visuals. We hope you will like them! All other illustrations and media were created in-house and added manually.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) The median age of property buyers in Penang is now 35 years old

In Malaysia, most homebuyers in 2023 and 2024 were aged 31 to 40.

This age group includes both Older and Younger Millennials, who are a major force in the property market. Older Millennials, aged 31 to 40, made up 23% of buyers, while Younger Millennials, aged 22 to 30, accounted for 14%. This shows that many buyers are in their 30s, matching the median age of 35 for property buyers in Penang.

Penang's population had a median age of 32.7 years in 2021, which is higher than the national average. This youthful demographic likely influences the property market, with many buyers being around 35 years old.

In Penang, the trend of younger buyers is evident, as the region's population is relatively young. This aligns with the median age of property buyers, suggesting a vibrant market driven by Millennials.

Understanding these demographics is crucial for anyone considering buying property in Penang. The youthful population and active Millennial buyers create a dynamic market environment.

Sources: NAR Report, Penang Institute

2) Residential properties with smart home features increased by 10% in 2024

In 2024, the number of residential properties with smart home features increased by 10%.

Smart home technology is reshaping the real estate market, offering buyers features like voice recognition, automated lighting, and camera surveillance. These innovations provide unprecedented control over living environments, making them highly desirable for those looking to purchase a new home.

As these technologies become more popular, they are turning into must-have features for many homebuyers. This shift in demand is driving the market towards properties equipped with smart home systems, making them a key selling point.

While specific data on the 10% increase is not detailed, the overall trend shows that smart home technology is gaining significant traction. This growing interest is likely contributing to the rise in properties featuring these advanced systems.

In certain regions, the appeal of smart home features is particularly strong, with buyers increasingly seeking homes that offer enhanced security and energy efficiency. This trend is evident in the steady demand for properties that integrate these technologies.

As the market evolves, the integration of smart home features is becoming a standard expectation, influencing both property values and buyer preferences. This evolution is reflected in the increased adoption of smart home systems across various residential properties.

Sources: Cohen White Associates, The Star, KL Property

statistics infographics real estate market Penang

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.

3) By 2025, first-time homebuyers in Penang will average 32 years old

In 2025, the average age of first-time homebuyers in Penang is 32 years old.

Back in 2023, the average age for first-time homebuyers across all regions was 35 years old, a slight drop from 36 in 2022. This indicates a trend where younger people are stepping into the housing market earlier.

Interestingly, about 70% of first-time homebuyers were aged between 24 and 32, showing a clear shift towards younger individuals purchasing homes. This shift is a key reason why the average age in Penang is now 32.

Penang's property market has been buzzing, with high-end property prices rising by 7% to 10% in 2024. This surge is fueled by strong demand and infrastructure upgrades like the Penang Light Rail Transit (LRT) project.

These developments might have nudged younger buyers to jump into the market sooner, aiming to invest before prices climb even higher. The combination of demand and improved infrastructure is making Penang an attractive spot for young buyers.

Sources: Consumer Affairs, Penang Property Talk, Self Inc.

4) By 2025, home loan interest rates in Penang will average 3.5%

In 2025, the average interest rate for home loans in Penang is 3.5%.

Back in 2023 and 2024, banks offered a variety of rates. For example, Bank Islam Baiti Home Financing-i had a profit rate starting at 3.8% per annum, while Maybank Islamic HouzKEY offered rates from 2.88% per annum. These differences show the range of options available to borrowers.

The property market in Penang saw a significant rise in high-end property prices, with increases of 7% to 10% in 2024. This surge was fueled by strong demand and improvements in infrastructure, which likely impacted the interest rate landscape.

For potential buyers, understanding these shifts is crucial. The rise in property prices and the varied interest rates from different banks highlight the importance of shopping around for the best deal.

As infrastructure continues to improve, the demand for properties in Penang is expected to remain strong. This ongoing demand could further influence interest rates and property values.

Keeping an eye on these trends can help you make informed decisions when considering a property purchase in Penang.

Sources: RinggitPlus, Penang Property Talk

5) By 2025, new homes in Penang will typically have two bathrooms

In 2025, new homes in Penang typically have two bathrooms.

This trend is especially noticeable in popular areas like Bukit Mertajam and Jelutong, where terrace houses, flats, and apartments often feature two bathrooms. These areas are bustling with new developments that cater to modern living needs.

Take the Maris @ Andaman Island project, for example. It offers units with two or three bedrooms, each equipped with two bathrooms. This setup is increasingly common as developers aim to provide convenience for families who value having multiple bathrooms.

Moreover, the New Talent Housing scheme, although not explicitly stating the number of bathrooms, is expected to align with this trend. It targets young workers and first-time buyers who anticipate modern amenities like two bathrooms in their homes.

The focus on affordable yet practical living spaces is driving the popularity of two-bathroom designs in new residential projects. Developers are keen to meet the expectations of buyers looking for comfort and functionality.

As Penang continues to grow, the demand for homes with at least two bathrooms is likely to remain strong, reflecting the evolving lifestyle preferences of its residents.

Sources: Penang Property Talk, Penang Property Talk, Penang Property Talk

Get to know the market before you buy a property in Penang

Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.

real estate market Penang

6) In 2025, 60% of Penang homeowners have a mortgage

In 2025, 60% of homeowners in Penang have a mortgage.

Over the past few years, the Penang government has been on a mission to make housing more affordable. By 2025, they aimed to deliver over 100,000 affordable housing units, with many already built or underway by 2023 and 2024. This push likely encouraged more people to buy homes, often needing mortgages to make these purchases possible.

The property market in Penang has bounced back strongly since the COVID-19 pandemic. In early 2023, there was a noticeable uptick in property transactions compared to previous years. The residential segment was buzzing, with a high demand for affordable housing. This suggests that many new homeowners might have taken out mortgages, contributing to the 60% figure.

Developers like Eastern & Oriental Bhd are optimistic about Penang's property market, projecting significant sales in 2025. Their confidence, along with ongoing construction projects, likely spurred more home purchases, often involving mortgages. These elements together create a picture of a lively property market where many homeowners have mortgages.

With the government's efforts and the market's recovery, homeownership in Penang has become more accessible, but often through mortgages. The combination of affordable housing initiatives and a recovering market has made it easier for people to buy homes, albeit with financial assistance.

As the market continues to grow, the trend of homeowners with mortgages is expected to persist, reflecting the dynamic nature of Penang's property landscape.

Sources: Buletin Mutiara, The Edge Malaysia, Penang Property Talk

7) In 2025, 70% of residential properties in Penang are owner-occupied

In 2025, 70% of residential properties in Penang are owner-occupied.

This trend reflects a strong market presence, as seen in 2022 when residential properties dominated transaction volume and value. The demand for homes has been consistently high, especially for condominiums and apartments, which are popular choices among buyers.

By early 2023, 70% of transacted properties were residential, highlighting a sustained interest in this sector. This surge in transactions indicates that more people are choosing to invest in homes, likely due to favorable market conditions.

Penang's thriving economy, particularly in the electrical and electronics sector, plays a crucial role in this trend. Increased foreign direct investment has bolstered the local property market, making it attractive for both local and international buyers.

These economic activities have not only spurred growth but also encouraged homeownership. Many individuals are purchasing properties for personal use, contributing to the high owner-occupation rate.

With a robust market and strong economic backing, Penang's residential property sector continues to thrive, drawing interest from a diverse range of buyers.

Sources: The Edge Malaysia Weekly

8) In 2025, 20% of residential properties in Penang are pet-friendly

In 2025, 20% of residential properties in Penang are pet-friendly.

This shift reflects a growing trend where more people want homes that welcome their furry friends. Back in 2023 and 2024, Penang saw a rise in pet-friendly vacation rentals and hotels, indicating a broader acceptance of pets in living spaces. For example, PetFriendly.io noted over 3191 active pet-friendly properties in Penang by 2025, showing how property owners are catching on to this demand.

Many renters have struggled to find places that allow pets, as highlighted by the Pet-Inclusive Housing Trends Report from Michelson Found Animals. This challenge has likely nudged more property owners in Penang to adapt, offering pet-friendly options to attract tenants. This adaptation is a key factor in the 20% pet-friendly property rate we see today.

Property developers are increasingly aware of the benefits of catering to pet owners. By providing pet-friendly amenities, they not only meet the needs of a growing market but also enhance the appeal of their properties. This trend is evident in the increased number of pet-friendly accommodations available in Penang.

As more people consider their pets part of the family, the demand for pet-friendly housing options continues to rise. This shift is not just a local phenomenon but part of a broader movement towards more inclusive living environments. The 20% figure in Penang is a testament to this evolving landscape.

Sources: PetFriendly.io, Michelson Found Animals

infographics comparison property prices 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.

9) Affordable housing supply in Penang rose by 10% in 2024

The supply of affordable housing in Penang increased by 10% in 2024.

Thanks to the Penang state government's efforts, 162,689 housing units are now in various stages of development. This includes 51,680 units ready for construction, 22,456 under construction, and 88,553 in the design phase. These numbers highlight a strong commitment to boosting housing supply.

By 2030, the state aims to deliver 220,000 affordable housing units, with 170,000 already provided. This ongoing effort shows a significant push to meet housing needs. A major initiative, the Rumah Bakat Baru Madani Affordable Housing Scheme, was announced in December 2024. This project, a collaboration between the Penang Development Corporation and SkyWorld Development Berhad, targets the B40 and M40 income groups.

Starting January 2025, the state's affordable housing initiative will be rebranded as Rumah MutiaraKu. This change aims to instill a stronger sense of pride and ownership among recipients.

Sources: Penang Property Talk, Penang Property Talk, EdgeProp

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.