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Everything you need to know before buying real estate is included in our Malaysia Property Pack
Penang's condo market offers rental yields that vary widely depending on where you buy and what type of unit you choose.
This guide breaks down realistic gross and net yields, typical rents by bedroom count, and the neighborhoods that actually deliver for investors in early 2026.
We constantly update this blog post to keep you informed with the freshest data available.
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.
What rental yields can I realistically get from a condo in Penang?
What's the average gross rental yield for condos in Penang as of 2026?
As of early 2026, the average gross rental yield for condos in Penang sits around 4.6%, which is a solid baseline for investors to work with when planning their returns.
That said, gross yields in Penang condos realistically range from about 3.8% to 5.8%, so your actual number depends heavily on where and what you buy.
The main factor driving this variation in Penang specifically is the gap between "lifestyle premium" coastal areas like Gurney Drive (where prices run ahead of rents) versus practical commuter hubs like Bayan Lepas (where working tenants keep demand steady and prices more reasonable).
Compared to Kuala Lumpur, Penang gross yields tend to be slightly lower on average because the island's limited land and lifestyle appeal push purchase prices higher relative to rent levels.
What's the average net rental yield for condos in Penang as of 2026?
As of early 2026, the average net rental yield for condos in Penang lands around 3.1%, which is what most investors actually take home after all the costs are deducted.
Realistically, net yields for Penang condos fall in a range of about 2.3% to 4.2%, depending on how well you manage vacancy and negotiate your fees.
The single biggest expense that eats into your gross yield in Penang condos is the maintenance and sinking fund fees, which commonly run RM0.25 to RM0.45 per square foot monthly and can consume 8% to 18% of your rent before you even count vacancy or management costs.
By the way, we have much more granular data about rental yields in our property pack about Penang.
What's the typical rent-to-price ratio for condos in Penang in 2026?
As of early 2026, the typical rent-to-price ratio for condos in Penang falls between 4% and 6% annually, which is simply another way of expressing gross yield.
Most Penang condo transactions show a price-to-annual-rent multiple of roughly 17 to 25 times, meaning if a condo rents for RM30,000 per year, you can expect to pay somewhere between RM510,000 and RM750,000 for it.
The highest rent-to-price ratios in Penang tend to show up in practical demand hubs like Bayan Lepas, Sungai Ara, and Jelutong, where purchase prices stay reasonable while steady tenant demand from the industrial corridor and nearby offices keeps rents healthy.
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How much rent can I charge for a condo in Penang?
What's the typical tenant budget range for condos in Penang right now?
In early 2026, most tenants looking for condos in Penang budget somewhere between RM1,500 and RM3,500 per month (around USD 340 to USD 795, or EUR 310 to EUR 730), covering the bulk of the rental market from young professionals to small families.
For entry-level condos in Penang, tenants typically budget RM1,200 to RM1,800 per month (about USD 270 to USD 410, or EUR 250 to EUR 375), which gets you older stock on the mainland or basic units in less central island locations.
Mid-range condo tenants in Penang usually spend RM1,800 to RM3,000 per month (roughly USD 410 to USD 680, or EUR 375 to EUR 625), which covers well-located units in areas like Gelugor, Jelutong, or Sungai Ara with decent facilities.
For high-end or luxury condos in Penang, tenants budget RM3,500 to RM6,000 or more per month (approximately USD 795 to USD 1,360, or EUR 730 to EUR 1,250), typically targeting seafront addresses like Gurney Drive or Seri Tanjung Pinang with premium views and amenities.
You can also check our latest update about rents in Penang here.
What's the average monthly rent for a 1-bed condo in Penang as of 2026?
As of early 2026, the average monthly rent for a 1-bed condo in Penang is around RM1,900 (approximately USD 430 or EUR 395), though this varies significantly by location and building age.
At the entry level, a decent 1-bed condo in Penang rents for about RM1,500 to RM1,700 per month (roughly USD 340 to USD 385, or EUR 310 to EUR 355), and this typically means an older building in mainland areas like Butterworth or a basic unit in secondary island locations without fancy facilities.
A typical mid-range 1-bed condo in Penang commands RM1,800 to RM2,200 per month (around USD 410 to USD 500, or EUR 375 to EUR 460), usually found in practical areas like Bayan Lepas or Gelugor with standard amenities like a gym and pool plus good access to workplaces.
For a luxury 1-bed condo in Penang, expect to pay RM2,300 to RM2,800 or more per month (approximately USD 520 to USD 635, or EUR 480 to EUR 585), which gets you newer projects in prime spots like Tanjung Tokong or George Town with seaviews, premium finishes, and lifestyle facilities.
What's the average monthly rent for a 2-bed condo in Penang as of 2026?
As of early 2026, the average monthly rent for a 2-bed condo in Penang is around RM2,400 (approximately USD 545 or EUR 500), making it the most popular size for both investors and tenants.
Entry-level 2-bed condos in Penang rent for about RM1,800 to RM2,100 per month (roughly USD 410 to USD 475, or EUR 375 to EUR 440), typically found in older mainland developments in Perai or Butterworth, or basic island buildings without premium positioning.
A typical mid-range 2-bed condo in Penang goes for RM2,200 to RM2,800 per month (around USD 500 to USD 635, or EUR 460 to EUR 585), usually in well-maintained buildings in Sungai Ara, Jelutong, or parts of Bayan Lepas with good facilities and parking.
Luxury 2-bed condos in Penang command RM3,000 to RM4,500 per month (approximately USD 680 to USD 1,020, or EUR 625 to EUR 940), found in premium seafront projects along Gurney Drive or Seri Tanjung Pinang with high-floor seaviews and resort-style amenities.
What's the average monthly rent for a 3-bed condo in Penang as of 2026?
As of early 2026, the average monthly rent for a 3-bed condo in Penang is around RM3,300 (approximately USD 750 or EUR 690), targeting families and expats who need more space.
Entry-level 3-bed condos in Penang rent for about RM2,500 to RM2,900 per month (roughly USD 570 to USD 660, or EUR 520 to EUR 605), usually in older island buildings or mainland locations where space is more affordable but finishes may be dated.
A typical mid-range 3-bed condo in Penang commands RM3,000 to RM3,800 per month (around USD 680 to USD 860, or EUR 625 to EUR 790), commonly found in family-friendly developments in Tanjung Tokong, Gelugor, or Sungai Ara with multiple parking spots and kid-friendly facilities.
Luxury 3-bed condos in Penang go for RM4,000 to RM5,500 or more per month (approximately USD 910 to USD 1,250, or EUR 835 to EUR 1,145), typically in premium seafront or hilltop addresses with expansive layouts, multiple bathrooms, and high-end finishes that attract corporate expats.
How fast do well-priced condos get rented in Penang?
Well-priced condos in high-demand Penang corridors typically rent within 2 to 6 weeks, while overpriced or poorly positioned units can sit vacant for 2 to 4 months or longer.
For planning purposes, investors in Penang should assume a vacancy rate of roughly one month per year (about 8% of gross rent), though liquid units in prime locations may see only half a month while niche properties could face two months or more.
The main factors that help condos rent faster in Penang specifically are proximity to the Bayan Lepas industrial and airport corridor (which anchors steady tenant demand), having at least one covered parking spot (a surprisingly big deal on the island), and pricing within the best 20% of comparable listings in the same building.
And if you want to know what should be the right price, check our latest update on how much a condo should cost 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.
Which condo type gives the best yield in Penang?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed condos in Penang as of 2026?
As of early 2026, studios and 1-bed condos typically offer the best rental yield in Penang, followed closely by compact 2-beds, while larger 3-bed units tend to have more compressed yields despite higher absolute rents.
In terms of typical gross yields by unit type in Penang: studios and 1-beds often achieve 5% to 6%, compact 2-beds around 4.5% to 5.5%, and 3-beds usually fall in the 3.5% to 4.5% range.
The main reason smaller units outperform in Penang specifically is the Bayan Lepas industrial corridor, which generates constant demand from young professionals and contract workers who need affordable, convenient housing near factories and the airport rather than large family spaces.
Which amenities are best if you want a good yield for your condo in Penang?
The amenities that most positively impact rental yield for Penang condos are covered parking (ideally at least one dedicated spot, or two for family units), reliable security with a staffed lobby, and a well-maintained gym and pool, because these are the things Penang tenants consistently pay more for rather than flashy extras they rarely use.
In Penang, mid-to-high floor units are easiest to rent because they offer better airflow, less street noise, and often partial seaviews, which matter more on the island where views are a real selling point.
Condos with balconies do rent slightly faster and can command a small premium in Penang, especially in expat-oriented buildings and seaview developments, though the premium is rarely large enough to justify overpaying at purchase.
Building amenities like pools and gyms help rents in mid-market and above Penang condos, but they come with higher maintenance fees that can offset the rent gain, so the real yield winner is often a modestly-equipped building where you bought at a good price rather than a fancy development where you paid top dollar.
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Which neighborhoods give the best rental demand for condos in Penang?
Which condo neighborhoods have the highest rental demand in Penang as of 2026?
As of early 2026, the Penang neighborhoods with the highest condo rental demand are Bayan Lepas, Sungai Ara, Gelugor, Jelutong, and Tanjung Tokong, all of which have strong tenant pools and relatively quick turnover.
The main demand driver in these Penang neighborhoods is their proximity to major employment centers: Bayan Lepas sits next to the Free Industrial Zone and airport, Gelugor benefits from USM (Universiti Sains Malaysia) and good bridge access, while Jelutong and Tanjung Tokong offer convenient town access for retail and office workers.
In these high-demand Penang neighborhoods, well-priced condos typically rent within 2 to 4 weeks and vacancy rates can be kept to half a month or less per year for landlords who price competitively.
One emerging neighborhood gaining rental momentum in Penang is Batu Kawan on the mainland, where new infrastructure, the IKEA anchor, and growing commercial development are starting to pull tenants who want affordable space and are willing to commute.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.
Which condo neighborhoods have the highest yields in Penang as of 2026?
As of early 2026, the Penang neighborhoods with the highest condo rental yields are Bayan Lepas, Sungai Ara, Jelutong, and mainland value zones like Perai, Butterworth, and Bukit Mertajam.
In these top-yielding Penang neighborhoods, gross rental yields typically range from 4.5% to 6.5%, compared to prime coastal areas like Gurney Drive or Seri Tanjung Pinang where yields often compress to 3.5% to 4.5%.
The main reason these neighborhoods deliver higher yields is that purchase prices remain more accessible (driven by less speculative premium and older stock), while tenant demand stays solid thanks to nearby factories, offices, and practical commute routes, so rent holds up better relative to what you paid.
We have a whole part covering all the neighborhoods in our pack about buying a property 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.
Should I do long-term rental or short-term rental in Penang?
Is short-term rental legal for condos in Penang as of 2026?
As of early 2026, short-term rental legality for condos in Penang depends heavily on the individual building's bylaws and the local authority's stance, with Penang Island generally taking a restrictive approach toward Airbnb-style stays in residential buildings.
The main legal hurdle for short-term rentals in Penang is that Malaysia's Strata Management Act allows each building's Management Corporation to set house rules that can restrict or ban short-stays entirely, and many Penang Island condos have done exactly that in response to resident complaints and local council pressure.
There is no reliable percentage of Penang condos that officially allow short-term rentals, because it varies building by building and enforcement changes over time, so the only safe approach is to request the written bylaws and confirm directly with the JMB or MC before buying any unit with Airbnb plans.
What's the gross yield difference short-term vs long-term in Penang in 2026?
As of early 2026, short-term rentals in Penang can deliver gross yields of roughly 6% to 10% compared to 4% to 6% for long-term rentals, but this gap narrows significantly once you factor in the extra costs and risks.
Typical gross yields for well-run short-term rental condos in Penang range from 7% to 10% in tourist-friendly spots like parts of George Town or beachfront areas, while long-term rentals in the same locations yield closer to 4% to 5%.
The main additional costs that reduce the net yield advantage of short-term rentals in Penang include platform fees (typically 3% to 15%), professional cleaning between guests, higher furnishing and replacement costs, utilities, and potentially property management fees of 20% or more if you outsource operations.
To outperform a long-term rental in Penang, a short-term rental typically needs to achieve at least 55% to 65% occupancy at competitive nightly rates, which can be challenging outside of peak seasons and requires active management.
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What costs will destroy my net yield for a condo in Penang?
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Penang.
What are condo HOA fees as a % of rent in Penang as of 2026?
As of early 2026, typical HOA fees (maintenance plus sinking fund) for Penang condos run about 10% to 15% of monthly rent, which translates to roughly RM250 to RM400 per month (around USD 55 to USD 90, or EUR 50 to EUR 85) for an average-sized unit.
The realistic range of HOA fees in Penang covers about 8% to 18% of rent depending on building facilities and unit size, with basic older buildings at the low end and premium developments with extensive amenities at the high end.
In Penang specifically, the amenities that typically justify higher-than-average HOA fees are infinity pools, rooftop facilities, extensive landscaping, 24-hour concierge services, and multiple parking levels with full security, which are common in newer seafront developments but rare in practical commuter-belt buildings.
What annual maintenance budget should I assume for a condo in Penang right now?
Condo owners in Penang should budget roughly RM3,250 to RM6,500 per year (approximately USD 740 to USD 1,475, or EUR 680 to EUR 1,355) for inside-unit maintenance, which works out to about 0.5% to 1% of a typical condo's value annually.
The realistic range of annual maintenance costs in Penang varies from around RM2,000 (about USD 455 or EUR 415) for newer units in good condition to RM8,000 or more (roughly USD 1,820 or EUR 1,670) for older condos requiring more frequent repairs and updates.
The most common maintenance expenses Penang condo owners face each year are air conditioning servicing and repairs (the tropical climate works AC units hard), water heater maintenance, plumbing fixes, and periodic repainting needed due to humidity-related wear.
What property taxes should I expect for a condo in Penang as of 2026?
As of early 2026, typical annual property taxes for a Penang condo total roughly RM600 to RM2,000 per year (approximately USD 135 to USD 455, or EUR 125 to EUR 415), combining assessment tax (cukai pintu) and quit rent (cukai tanah).
The realistic range of property taxes in Penang depends on your condo's assessed value and location, with mainland units generally paying less and premium island properties at the higher end of the scale.
Property taxes for Penang condos are calculated based on the annual rental value assessed by the local council (MBPP for the island or MPSP for Seberang Perai), with assessment tax rates typically ranging from 3% to 12% of that assessed rental value depending on the zone.
There are limited property tax exemptions available for Penang condo owners, though first-time homebuyers may qualify for stamp duty relief on purchases under certain thresholds, and some council zones occasionally offer early payment rebates.
How much does condo insurance cost in Penang in 2026?
As of early 2026, typical annual condo insurance in Penang costs roughly RM300 to RM1,200 per year (approximately USD 70 to USD 275, or EUR 65 to EUR 250), covering fire, contents, and basic liability protection for landlords.
The realistic range of insurance costs depends on your coverage level and the insured value of your unit and contents, with basic fire-only policies at the low end and comprehensive packages including tenant liability and loss of rent coverage at the higher end.
What's the typical property management fee for condos in Penang as of 2026?
As of early 2026, typical property management fees for Penang condos run about 6% to 10% of monthly rent for ongoing management, which works out to roughly RM150 to RM350 per month (approximately USD 35 to USD 80, or EUR 30 to EUR 75) on an average rental.
The realistic range of property management fees in Penang spans from 5% for basic rent collection services to 12% or more for full-service management including inspections, repairs coordination, and tenant relations, with tenant placement typically charged as a separate one-time fee of around one month's rent.
Standard property management services in Penang typically include tenant sourcing and screening, lease preparation, rent collection, routine inspections, coordination of minor repairs, and handling tenant move-in and move-out logistics.
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 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/JPPH | Malaysia's official property statistics unit under the Ministry of Finance. | We used their Northern Region Property Market Report and MyProperty Stats portal to ground official market context for Penang high-rise prices and rental trends. We also cross-checked our listing-based numbers against their data to ensure our estimates align with government figures. |
| iProperty/brickz | Major Malaysian portal publishing actual transaction-based pricing data. | We used their Penang condo transaction records as our anchor for realistic purchase pricing in RM per square foot by project and area. We paired this with rents to calculate yields throughout the article. |
| PropertyGuru Malaysia | The largest mainstream property portal in Malaysia used by agents and tenants. | We analyzed their rental listings for studios, 1-bed, 2-bed, and 3-bed condos in Penang to establish current asking rents in January 2026. We applied a small realism discount when computing achieved rents for yield calculations. |
| MBPP (Majlis Bandaraya Pulau Pinang) | The local council that administers property taxes on Penang Island. | We used their assessment tax information to frame property taxes as a recurring cost that affects net yield. We converted their rate structures into practical annual RM ranges for our cost estimates. |
| Strata Management Act 2013 | The legal framework governing how strata buildings set and enforce bylaws in Malaysia. | We used it to explain why short-term rental legality is building-by-building in Penang. We also cited it to justify our advice that buyers must verify building bylaws before purchasing with Airbnb plans. |
| Maybank | Major Malaysian bank with authoritative insurance product explanations. | We used their property insurance guides to explain what condo insurance typically covers in Malaysia. We translated their information into realistic annual budget ranges for our net yield calculations. |
| RHB Group | Bank-hosted documentation on regulated fire insurance tariffs in Malaysia. | We used their tariff reference as a pricing sanity check confirming that fire coverage is typically inexpensive relative to property value. We applied conservative RM ranges to avoid understating insurance costs. |
| Buletin Mutiara | Penang government-linked channel for official announcements and policy communication. | We used it to ground the reality that Penang Island has taken a restrictive stance toward short-term stays in residential contexts. We translated this into practical advice about what investors can and cannot do. |
| PropertyGuru Property Guides | Mainstream Malaysian property education hub tied to the largest portal. | We used their maintenance fee guides to anchor typical fee concepts and RM per square foot ranges used by Malaysian buyers. We converted these into percentage-of-rent figures for our yield calculations. |
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