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Everything you need to know before buying real estate is included in our Malaysia Property Pack
Penang's rental market in 2026 is shaped by two very different worlds: the island's expat-friendly beaches and heritage zones, and the mainland's industrial commuter belt.
Whether you're eyeing George Town's charm or Bayan Lepas's tech hub proximity, understanding current Penang rents helps you plan smarter.
We constantly update this blog post to reflect the latest rental data and market shifts in Penang.
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
- Penang studio rents in 2026 average around RM 1,650 per month, but mainland areas like Perai can be 25% cheaper than island locations like George Town.
- Furnished condos in Penang command a 5% to 12% rent premium over unfurnished units, especially in expat-heavy areas like Tanjung Tokong and Tanjung Bungah.
- Year-over-year rent growth in Penang sits between 4% and 7% as of January 2026, outpacing national inflation due to strong semiconductor and manufacturing job demand.
- Penang's rental vacancy rate hovers around 6% to 9%, with tighter availability near USM university and the Bayan Lepas industrial corridor.
- Properties near transit hubs in Penang rent about 20 to 30 days faster than average, particularly in Butterworth and George Town core.
- Sea views on Penang's north coast can add RM 300 to RM 600 per month to typical condo rents in areas like Batu Ferringhi.
- Peak tenant demand in Penang occurs during February to March and June to August, driven by job relocations and university cycles.
- Penang landlords pay combined property taxes of roughly RM 600 to RM 1,800 per year, which includes assessment tax and quit rent.
What are typical rents in Penang as of 2026?
What's the average monthly rent for a studio in Penang as of 2026?
As of January 2026, the average monthly rent for a studio in Penang is around RM 1,650 (approximately USD 375 or EUR 350), though this varies depending on whether you're looking at the island or mainland.
Most studios in Penang rent between RM 1,400 and RM 1,900 per month (roughly USD 320 to USD 430, or EUR 300 to EUR 405), covering the range from basic mainland units to well-located island condos.
The main factors that push Penang studio rents up or down are location (island versus mainland), proximity to job hubs like Bayan Lepas, and whether the unit comes furnished or unfurnished.
What's the average monthly rent for a 1-bedroom in Penang as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in Penang is around RM 2,100 (approximately USD 475 or EUR 445), reflecting the typical mid-market condo near job centers or universities.
Most 1-bedroom apartments in Penang rent between RM 1,700 and RM 2,500 per month (roughly USD 385 to USD 570, or EUR 360 to EUR 530), depending on the neighborhood and finishes.
For the cheapest 1-bedroom rents in Penang, look at mainland areas like Perai or Seberang Jaya, while the priciest 1-bedrooms cluster in Tanjung Tokong and Gurney Drive on the island.
What's the average monthly rent for a 2-bedroom in Penang as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in Penang is around RM 2,900 (approximately USD 660 or EUR 615), representing a typical mid-range condo suitable for couples or small families.
Most 2-bedroom apartments in Penang rent between RM 2,300 and RM 3,500 per month (roughly USD 520 to USD 795, or EUR 490 to EUR 745), with significant variation based on location and amenities.
The cheapest 2-bedroom rents in Penang are found in workforce hubs like Bayan Baru and Relau, while the most expensive cluster in the expat belt of Tanjung Bungah and Batu Ferringhi, where sea views push rents higher.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Penang.
What's the average rent per square meter in Penang as of 2026?
As of January 2026, the average rent per square meter in Penang is around RM 27 per month (approximately USD 6.15 or EUR 5.75), which reflects typical mid-market condo rentals across the state.
Rent per square meter in Penang ranges from roughly RM 22 to RM 32 per month (USD 5 to USD 7.25, or EUR 4.70 to EUR 6.80), with mainland areas at the lower end and prime island locations at the higher end.
Compared to Kuala Lumpur, Penang's rent per square meter is generally 15% to 25% lower, making it attractive for those seeking coastal living without capital-city prices.
In Penang, rent per square meter climbs above average for units with sea views, waterfront access, or modern condo facilities like pools and gyms in areas such as Gurney Drive or Straits Quay.
How much have rents changed year-over-year in Penang in 2026?
As of January 2026, rents in Penang have increased by approximately 4% to 7% compared to January 2025, reflecting steady demand from the manufacturing and expat sectors.
The main factors driving Penang rent increases in 2026 include continued semiconductor industry expansion, stable tourism recovery, and limited new condo supply in prime areas.
This year's rent growth in Penang is slightly stronger than 2025's pace, when increases hovered around 3% to 5%, as job creation in Bayan Lepas and Batu Kawan has accelerated tenant demand.
What's the outlook for rent growth in Penang in 2026?
As of January 2026, projected rent growth in Penang for the full year is estimated at 3% to 6%, assuming stable economic conditions and continued industrial investment.
Key factors likely to influence Penang rent growth in 2026 include ongoing electronics and semiconductor sector expansion, expat inflows driven by the MM2H program, and Bank Negara's interest rate stance at 2.75%.
Neighborhoods in Penang expected to see the strongest rent growth are Bayan Lepas (near tech jobs), Tanjung Tokong (expat lifestyle demand), and areas near USM where student and young professional demand stays high.
Risks that could alter Penang's rent growth projections include a global semiconductor slowdown, unexpected interest rate hikes, or a surge in new condo completions flooding the market.
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.
Which neighborhoods rent best in Penang as of 2026?
Which neighborhoods have the highest rents in Penang as of 2026?
As of January 2026, the top three neighborhoods with the highest average rents in Penang are Gurney Drive at around RM 4,000 per month (USD 910, EUR 850), Tanjung Tokong at around RM 3,500 per month (USD 795, EUR 745), and Batu Ferringhi at around RM 3,800 per month (USD 865, EUR 810).
These Penang neighborhoods command premium rents because they offer waterfront locations, modern high-rise condos with resort-style amenities, and easy access to upscale dining and shopping.
The tenant profile in these high-rent Penang neighborhoods typically includes expats on corporate packages, retirees under the MM2H visa, and affluent local professionals seeking lifestyle amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Penang.
Where do young professionals prefer to rent in Penang right now?
The top three neighborhoods where young professionals prefer to rent in Penang are Jelutong (quick access to George Town), Gelugor and Sungai Dua (near USM and industrial routes), and Bayan Baru (close to Bayan Lepas tech jobs).
Young professionals in these Penang neighborhoods typically pay between RM 1,500 and RM 2,200 per month (roughly USD 340 to USD 500, or EUR 320 to EUR 470) for a compact condo or 1-bedroom unit.
These neighborhoods attract young professionals in Penang because they combine affordable rents with good cafe scenes, convenient commutes to major employers, and modern condo amenities.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Penang.
Where do families prefer to rent in Penang right now?
The top three neighborhoods where families prefer to rent in Penang are Tanjung Bungah (expat-friendly with larger units), Bayan Lepas and Bayan Baru (family condos near jobs), and Bukit Mertajam on the mainland (more space per ringgit).
Families renting 2-3 bedroom apartments in these Penang neighborhoods typically pay between RM 2,500 and RM 4,000 per month (roughly USD 570 to USD 910, or EUR 530 to EUR 850).
These neighborhoods attract families in Penang because they offer larger units, quieter residential environments, good security, and proximity to parks and community facilities.
Top-rated schools near these family-friendly Penang neighborhoods include Dalat International School and Tenby Schools in the Tanjung Bungah area, plus several Chinese and national schools around Bayan Lepas and Bukit Mertajam.
Which areas near transit or universities rent faster in Penang in 2026?
As of January 2026, the top three areas near transit hubs or universities that rent fastest in Penang are Sungai Dua and Gelugor (near USM), George Town core and Jelutong (bus-connected to offices), and Butterworth near the ferry and rail links.
Properties in these high-demand Penang areas typically stay listed for only 20 to 30 days, compared to 35 to 45 days in less connected neighborhoods.
The typical rent premium for properties within walking distance of transit or universities in Penang is around RM 150 to RM 300 per month (roughly USD 35 to USD 70, or EUR 32 to EUR 65) compared to similar units further away.
Which neighborhoods are most popular with expats in Penang right now?
The top three neighborhoods most popular with expats in Penang are Tanjung Tokong (waterfront lifestyle and modern condos), Tanjung Bungah (quieter family expat area), and Gurney Drive and Pulau Tikus (central, premium, city lifestyle).
Expats renting in these Penang neighborhoods typically pay between RM 3,000 and RM 5,000 per month (roughly USD 680 to USD 1,135, or EUR 640 to EUR 1,065) for furnished 2-bedroom or larger units.
These neighborhoods attract expats in Penang because they offer English-friendly environments, proximity to international schools and hospitals, resort-style amenities, and reliable high-speed internet.
The expat communities most represented in these Penang neighborhoods include retirees from the UK, Australia, Japan, and South Korea, along with working professionals from Singapore and various Western countries.
And if you are also an expat, you may want to read our exhaustive guide for expats in Penang.
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Who rents, and what do tenants want in Penang right now?
What tenant profiles dominate rentals in Penang?
The top three tenant profiles dominating Penang's rental market are young professionals working in the tech and manufacturing sectors, university students near USM, and expats or retirees seeking lifestyle rentals.
In Penang, young professionals represent roughly 40% of the rental market, students account for about 25%, and expats and retirees make up around 20%, with local families filling the remaining share.
Young professionals in Penang typically seek studios or 1-bedrooms near Bayan Lepas, students look for affordable rooms or small units near Sungai Dua, and expats prefer furnished 2-3 bedroom condos in the north coast belt.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Penang.
Do tenants prefer furnished or unfurnished in Penang?
In Penang's 2026 rental market, roughly 60% to 65% of condo tenants prefer furnished units, while the remaining 35% to 40% opt for unfurnished, particularly local families planning longer stays.
Furnished apartments in Penang typically command a rent premium of RM 150 to RM 250 per month (roughly USD 35 to USD 55, or EUR 32 to EUR 53) compared to similar unfurnished units.
The tenant profiles that prefer furnished rentals in Penang are mainly expats, short-term corporate transferees, students, and young professionals who want a move-in-ready experience without buying furniture.
Which amenities increase rent the most in Penang?
The top five amenities that increase rent the most in Penang are sea views or waterfront access, swimming pool and gym facilities, 24-hour security, covered parking (at least one bay), and reliable air conditioning with good ventilation.
In Penang, a sea view can add RM 300 to RM 600 per month (USD 70 to USD 135, EUR 65 to EUR 130), while pool and gym access typically adds RM 100 to RM 200 (USD 23 to USD 45, EUR 21 to EUR 43), and 24-hour security adds around RM 50 to RM 150 (USD 11 to USD 35, EUR 10 to EUR 32).
In our property pack covering the real estate market in Penang, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Penang?
The top five renovations that get the best ROI for rental properties in Penang are installing air conditioning units and water heaters, refreshing the kitchen with a modern hob and hood, repainting walls in neutral colors, upgrading to durable flooring, and adding quality but not luxury furniture.
In Penang, air conditioning and water heater installation costs around RM 2,000 to RM 4,000 (USD 455 to USD 910, EUR 425 to EUR 850) and can increase rent by RM 150 to RM 250 per month, while a kitchen refresh at RM 3,000 to RM 6,000 (USD 680 to USD 1,365, EUR 640 to EUR 1,275) typically adds RM 100 to RM 200 monthly.
Renovations that tend to have poor ROI in Penang include luxury marble countertops, high-end designer fixtures, or major structural changes, as tenants rarely pay enough extra rent to justify these costs.
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 strong is rental demand in Penang as of 2026?
What's the vacancy rate for rentals in Penang as of 2026?
As of January 2026, the estimated vacancy rate for rental properties in Penang is around 6% to 9%, indicating a relatively balanced market that favors neither landlords nor tenants too strongly.
Vacancy rates in Penang vary from as low as 4% to 5% in high-demand areas like Sungai Dua and Bayan Lepas, up to 10% to 12% in oversupplied condo developments with many similar competing units.
The current vacancy rate in Penang is roughly in line with historical averages, though it has tightened slightly from the 8% to 11% range seen during the pandemic recovery years of 2022 and 2023.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Penang.
How many days do rentals stay listed in Penang as of 2026?
As of January 2026, the average number of days rentals stay listed in Penang is around 25 to 45 days, depending on pricing, location, and property condition.
Days on market in Penang range from as few as 20 to 30 days for well-priced units near USM or Bayan Lepas, up to 50 to 60 days for overpriced or less conveniently located properties.
The current days-on-market figure in Penang is slightly faster than one year ago, when listings averaged 30 to 50 days, reflecting stronger tenant demand driven by job growth in the semiconductor sector.
Which months have peak tenant demand in Penang?
The peak months for tenant demand in Penang are typically February to March, June to August, and October to November, when job relocations and education cycles create the most rental activity.
These seasonal demand patterns in Penang are driven by post-holiday job moves in early spring, university semester starts and internship seasons in mid-year, and end-of-year corporate transfers.
The months with the lowest tenant demand in Penang are December and January, when the festive season slows rental decisions, and April to May, which falls between the main hiring and academic cycles.
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What will my monthly costs be in Penang as of 2026?
What property taxes should landlords expect in Penang as of 2026?
As of January 2026, landlords in Penang should expect to pay around RM 600 to RM 1,800 per year (roughly USD 135 to USD 410, or EUR 130 to EUR 385) in combined assessment tax and quit rent for a typical condo.
Property taxes in Penang can range from as low as RM 400 per year for smaller mainland units up to RM 2,500 or more per year for larger high-value island properties.
Property taxes in Penang are calculated based on the annual value of the property, which the local council assesses, and then a rate percentage is applied, so location and property size directly determine your bill.
Please note that, in our property pack covering the real estate market in Penang, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Penang right now?
In Penang, the utilities landlords most commonly pay on behalf of tenants include monthly maintenance fees (for condos), sewerage charges, and sometimes internet for fully furnished expat packages.
Typical monthly costs for landlord-paid utilities in Penang are around RM 250 to RM 450 per month (roughly USD 55 to USD 100, or EUR 53 to EUR 95) for maintenance fees, plus RM 8 to RM 24 per month for sewerage depending on the property type.
The common practice in Penang is for tenants to pay electricity, water, and internet directly, while landlords cover maintenance fees and sometimes include Wi-Fi as part of furnished rental packages targeting expats.
How is rental income taxed in Penang as of 2026?
As of January 2026, rental income in Penang (and all of Malaysia) is taxed on net rental profit at your personal income tax rate, which ranges from 0% to 30% depending on your total taxable income.
The main deductions landlords in Penang can claim against rental income include assessment tax, quit rent, mortgage interest, repairs and maintenance, insurance premiums, agent fees, and condo maintenance fees.
A common tax mistake specific to Penang landlords is forgetting to stamp the tenancy agreement, which is required by Malaysian law and can create issues if disputes arise or if tax authorities review your rental records.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in 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.
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) | NAPIC is Malaysia's official property statistics arm under the federal valuation department. | We used it to anchor Penang's supply, demand, and overhang context. We also checked whether rent pressure should be tight, normal, or soft. |
| Department of Statistics Malaysia (DOSM) | DOSM is Malaysia's national statistics office and the official source for inflation data. | We used it to ground the cost-of-living baseline and keep rent growth assumptions consistent with broader inflation. We also used it to avoid claiming rent growth wildly out of line with national conditions. |
| OpenDOSM / data.gov.my | This is the Malaysian government's open data catalogue for official datasets. | We used it to focus specifically on Pulau Pinang rather than national averages. We also used it to support seasonality commentary on rent movements. |
| Penang Institute | Penang Institute is a respected state policy think tank that republishes official data in clean dashboards. | We used it to keep the story uniquely Penang-focused. We also used it to avoid over-generalizing from Kuala Lumpur data to Penang. |
| Bank Negara Malaysia | Bank Negara is Malaysia's central bank, and OPR is the benchmark rate that shapes mortgage costs. | We used it to frame the 2026 outlook on financing costs. We also used it to keep the macro story tied to official monetary conditions. |
| Reuters | Reuters is a top-tier wire service with tight sourcing standards and direct attribution. | We used it to confirm the most recent OPR policy stance going into 2026. We also used it as a real-time cross-check when central bank PDFs were hard to locate. |
| PropertyGuru | PropertyGuru is the largest mainstream property portal in Malaysia and reflects active asking rents. | We used it to triangulate current asking rent ranges and identify which areas are most liquid. We also estimated days listed and tenant preferences from market behavior. |
| iProperty | iProperty is another major national portal, useful as an independent cross-check. | We used it to sanity-check PropertyGuru signals so one portal doesn't bias the numbers. We also confirmed typical unit sizing and rent bands across island versus mainland. |
| Brickz | Brickz compiles transaction evidence and gives a reality check on typical values and price per sqft. | We used it to anchor what a typical Penang condo costs, then translated that into rent via conservative gross yields. We also used it to keep rent per sqm estimates internally consistent. |
| TNB (Tenaga Nasional Berhad) | TNB is the electricity provider and publishes the official tariff schedule. | We used it to give a realistic monthly utility range for typical rental units. We also kept numbers grounded in published tariff structures. |
| Indah Water Konsortium (IWK) | IWK is the national sewerage company and publishes the actual customer charge framework. | We used it to explain sewerage billing in monthly costs. We also clarified who typically pays it based on lease terms. |
| MBSP (Seberang Perai City Council) | MBSP is the local authority for Seberang Perai and the direct source for assessment tax definitions. | We used it to explain what property tax really means locally. We also kept mainland Penang accurate and not island-only. |
| LHDN (Inland Revenue Board) | LHDN is Malaysia's tax authority and administers stamp duty and income tax rules. | We used it to explain tenancy agreement stamping and rental income taxation. We kept guidance aligned with the official agency. |
| Business Insider | Business Insider is a major publication that cited primary market data on Penang expat rentals. | We used it as an external cross-check that our entry-level rent figures aren't fantasy. We also triangulated expat and retiree demand patterns important in Penang. |
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