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This article explains residential rents in Penang in June 2026, with simple numbers for people who are thinking about buying a property in Penang.
We constantly update this blog post, because asking rents in Penang change quickly between George Town, Bayan Lepas, Gelugor, Tanjung Tokong and the mainland.
We focus only on residential property in Penang, so you will not find office, retail or hotel rental data here.
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 are typical rents in Penang as of 2026?
As of June 2026, a practical average rent in Penang is around RM1,500 per month for a studio, RM1,900 for a 1-bedroom apartment, RM2,300 for a 2-bedroom apartment and about RM28 per square meter per month for a normal condo or serviced apartment.
These Penang rent numbers are not one single official average, because island condos in Gurney Drive, Tanjung Tokong and Tanjung Bungah are much more expensive than older flats in Ayer Itam, Butterworth, Perai and Bukit Mertajam.
For foreign buyers, the simple point is that Penang rental demand is strongest where daily life is easy, meaning close to jobs, universities, hospitals, malls, international services and good road access.
What's the average monthly rent for a studio in Penang as of 2026?
As of 2026, the average monthly rent for a studio in Penang is about RM1,500, which is roughly USD 320 or EUR 300 using rounded 2026 exchange-rate assumptions.
For most studios in Penang, a realistic monthly rent range is RM1,100 to RM1,900, or about USD 235 to USD 405 and EUR 220 to EUR 375.
This range is wide because a basic studio in Gelugor, Sungai Ara or Bayan Lepas is not priced like a newer furnished studio near George Town, Gurney Drive, Tanjung Tokong or Queensbay.
What's the average monthly rent for a 1-bedroom in Penang as of 2026?
As of 2026, the average monthly rent for a 1-bedroom apartment in Penang is about RM1,900, which is roughly USD 405 or EUR 375.
For most 1-bedroom apartments in Penang, a realistic monthly rent range is RM1,400 to RM2,600, or about USD 300 to USD 555 and EUR 275 to EUR 515.
The cheapest 1-bedroom rents in Penang are usually in older stock around Ayer Itam, Butterworth, Perai and parts of Bukit Mertajam, while the highest rents are usually in Gurney Drive, Tanjung Tokong, Tanjung Bungah, Straits Quay and premium George Town serviced residences.
What's the average monthly rent for a 2-bedroom in Penang as of 2026?
As of 2026, the average monthly rent for a 2-bedroom apartment in Penang is about RM2,300, which is roughly USD 490 or EUR 455.
For most 2-bedroom apartments in Penang, a realistic monthly rent range is RM1,500 to RM3,200, or about USD 320 to USD 680 and EUR 300 to EUR 635.
The cheapest 2-bedroom rents in Penang are usually in Butterworth, Perai, Bukit Mertajam, Ayer Itam and older Jelutong stock, while the most expensive 2-bedroom rents are usually in Straits Quay, Gurney Drive, Tanjung Tokong, Tanjung Bungah and Queens Waterfront.
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 2026, the average rent per square meter in Penang is about RM28 per month, which is roughly USD 6 or EUR 5.50 per square meter.
Across Penang neighborhoods, a realistic rent range is RM20 to RM38 per square meter per month, or about USD 4.25 to USD 8.10 and EUR 4 to EUR 7.50.
Compared with Kuala Lumpur and prime Selangor areas, Penang rents per square meter are usually lower than top KLCC and Mont Kiara condos, but higher than many secondary Malaysian cities because Penang has strong jobs, tourism, hospitals and education demand.
In Penang, small furnished units, sea views, newer buildings, covered parking, good security and walking access to Queensbay Mall, Gurney Plaza, Straits Quay or USM usually push rent per square meter above average.
How much have rents changed year-over-year in Penang in 2026?
As of 2026, average residential rents in Penang are estimated to be up about 4% to 6% year over year.
The main reasons are steady E&E jobs around Bayan Lepas and Batu Kawan, stronger expat demand in the north coast, university demand near USM, and better demand for furnished condos in George Town, Gelugor and Tanjung Tokong.
This 2026 rent increase in Penang looks steadier than the previous year, because demand is broad but tenants are still price-sensitive in older mainland and lower-cost island areas.
What's the outlook for rent growth in Penang in 2026?
As of 2026, the base-case outlook is for Penang rents to grow by about 3% to 5% over the full year.
The key support comes from manufacturing jobs, shared-service employment, medical tourism, university demand, expat demand and the fact that the best island locations cannot easily add unlimited new supply.
The strongest rent growth in Penang is expected in Bayan Lepas, Bayan Baru, Gelugor, George Town, Tanjung Tokong and Tanjung Bungah, because these areas match real tenant needs.
The main risks are new condo competition, weaker affordability for local tenants, slower hiring in export-linked industries, and landlords overpricing units after seeing luxury listings online.
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Which neighborhoods rent best in Penang as of 2026?
The best rental neighborhoods in Penang depend on the tenant, because a USM student, a Bayan Lepas engineer, an expat family and a mainland commuter do not want the same apartment.
For simple investor thinking, Penang’s strongest rental areas are the places where tenants save time, feel safe and have clear reasons to stay for at least one year.
Which neighborhoods have the highest rents in Penang as of 2026?
As of 2026, the top high-rent areas in Penang are Straits Quay and Tanjung Tokong at about RM3,800 per month, Gurney Drive and Pulau Tikus at about RM3,600, and Tanjung Bungah at about RM3,200, equal to roughly USD 810, USD 765 and USD 680, or EUR 750, EUR 710 and EUR 635.
These Penang neighborhoods command premium rents because they offer sea views, newer condos, international services, malls, restaurants, parking, security and easier access to expat daily life.
The typical tenants in these high-rent Penang neighborhoods are expat families, senior managers, retirees, medical visitors, wealthy local families and professionals who want comfort more than the lowest rent.
By the way, we’ve written a blog article detailing Sources and methodology: we reviewed premium listings on Mudah, PropertyGuru and iProperty. We separated waterfront prices from normal condo prices. We then checked these areas against our own expat and lifestyle-demand notes.
Where do young professionals prefer to rent in Penang right now?
Young professionals in Penang most often prefer Bayan Baru, Bayan Lepas and Gelugor, with Jelutong, Sungai Ara and George Town fringe areas also popular.
In these Penang neighborhoods, young professionals usually pay about RM1,500 to RM2,500 per month, or roughly USD 320 to USD 530 and EUR 300 to EUR 495.
These areas attract young professionals because they offer shorter commutes to factories, shared-service offices, Queensbay Mall, USM-side shops, food options, parking and lower rents than the north-coast expat areas.
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?
Families in Penang often prefer Tanjung Bungah, Tanjung Tokong and Sungai Ara, while Pulau Tikus, Green Lane, Bayan Baru and Bukit Mertajam also work well for many households.
For 2-bedroom and 3-bedroom apartments in these family-friendly Penang areas, families usually pay about RM2,300 to RM4,500 per month, or roughly USD 490 to USD 955 and EUR 455 to EUR 890.
These neighborhoods work for families because they offer bigger units, parking, security, supermarkets, clinics, calmer daily routines and easier access to schools than many dense central streets.
Important education options near these areas include Dalat International School near Tanjung Bungah, St. Christopher’s International Primary School near Pulau Tikus, Tenby Schools in Tanjung Bungah and local school options around Bayan Baru and Sungai Ara.
Which areas near transit or universities rent faster in Penang in 2026?
As of 2026, the fastest-renting areas near universities or transport nodes in Penang are Gelugor and Minden near USM, Bayan Lepas and Bayan Baru near job corridors, and Butterworth near Penang Sentral.
In these high-demand Penang areas, correctly priced rentals often stay listed for only 10 to 30 days, while weaker or overpriced units can take much longer.
A unit within walking distance of USM, Penang Sentral or strong job access can often earn a premium of RM150 to RM400 per month, or about USD 30 to USD 85 and EUR 30 to EUR 80.
Which neighborhoods are most popular with expats in Penang right now?
The top expat rental neighborhoods in Penang are Tanjung Tokong, Tanjung Bungah and Gurney Drive, with Straits Quay, Pulau Tikus, Batu Ferringhi and selected George Town serviced apartments also popular.
Expats in these Penang neighborhoods usually pay about RM2,800 to RM5,500 per month, or roughly USD 595 to USD 1,170 and EUR 555 to EUR 1,090.
These areas attract expats because they offer sea views, international schools, cafes, medical access, supermarkets, security, furnished condos and a lifestyle that is easier to understand after arrival.
The most visible expat communities in these Penang neighborhoods include British, Australian, Japanese, Korean, Singaporean, European, American and regional Asian professionals and retirees.
And if you are also an expat, you may want to read our Sources and methodology: we reviewed PropertyGuru, Mudah and InvestPenang. We linked premium rents to expat lifestyle and work demand. We also used our own expat-neighborhood mapping for Penang.
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Who rents, and what do tenants want in Penang right now?
Penang tenants are not all tourists or expats, because long-term rental demand in Penang is mostly supported by jobs, universities, hospitals and local family needs.
For landlords, the best units are usually clean, practical, furnished or semi-furnished, well photographed, easy to commute from and priced honestly against nearby alternatives.
What tenant profiles dominate rentals in Penang?
The top tenant profiles in Penang are local working professionals, E&E and shared-service workers, and students or academics linked to USM and other education institutions.
A practical split is about 40% local professionals and young couples, 25% E&E and shared-service workers, 15% students and academics, with the remaining 20% made up of expats, retirees, medical visitors and families between homes.
Local professionals often seek studios and 1-bedroom condos, E&E workers often seek 1-bedroom and 2-bedroom units near Bayan Lepas or Batu Kawan routes, and students often seek rooms or small units around Gelugor, Minden, Sungai Dua and Bukit Gambier.
If you want to optimize your cashflow, you can read our Sources and methodology: we used InvestPenang, USM and OpenDOSM labour data. We matched tenant groups with actual employment and education anchors. We then refined the split using our own rental-demand model.
Do tenants prefer furnished or unfurnished in Penang?
In Penang, about 60% to 70% of tenants looking at studios and 1-bedroom units prefer furnished rentals, while families in larger units are more open to semi-furnished homes.
A furnished apartment in Penang usually earns a premium of about RM150 to RM350 per month, or roughly USD 30 to USD 75 and EUR 30 to EUR 70, compared with a similar unfurnished unit.
Furnished rentals are especially preferred by expats, students, relocating workers, young professionals and tenants who need to move quickly into areas like George Town, Gelugor, Bayan Lepas, Tanjung Tokong and Tanjung Bungah.
Which amenities increase rent the most in Penang?
The five amenities that increase rent the most in Penang are sea view, full furnishing, covered parking, renovated kitchen or bathroom, and strong condo facilities such as pool, gym and security.
In Penang, sea view can add RM300 to RM800 per month, full furnishing RM150 to RM350, covered parking RM100 to RM250, renovation RM150 to RM400, and strong facilities RM150 to RM300, equal to roughly USD 20 to USD 170 or EUR 20 to EUR 160 depending on the amenity.
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 five renovations with the best rental ROI in Penang are repainting, air-conditioner servicing or replacement, bathroom refresh, kitchen refresh and basic furnishing upgrades.
For a normal Penang condo, these upgrades often cost RM1,000 to RM18,000 in total, or about USD 210 to USD 3,830 and EUR 200 to EUR 3,565, and can lift rent by roughly RM100 to RM350 per month if the unit was tired.
Poor-ROI renovations in Penang include luxury marble-style finishes in mass-market units, very personal design themes, expensive built-ins that reduce space, and upgrades that ignore air-conditioning, humidity, water pressure or parking needs.
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How strong is rental demand in Penang as of 2026?
Rental demand in Penang is strong, but it is not strong everywhere in the same way.
The best demand is usually in areas with clear tenant reasons, such as USM, Bayan Lepas jobs, George Town services, north-coast expat life and mainland transport links.
What's the vacancy rate for rentals in Penang as of 2026?
As of 2026, the estimated vacancy rate for long-term residential rentals in Penang is about 6% to 8% across the state.
Prime, well-priced condos in Tanjung Tokong, Tanjung Bungah, George Town, Gelugor and Bayan Lepas can sit closer to 3% to 5% vacancy, while older, overpriced or poorly maintained stock can sit closer to 10% to 15%.
Compared with Penang’s recent normal pattern, current vacancy looks slightly tighter in the best island and job-corridor areas, but still competitive in older and oversupplied condo clusters.
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 2026, a correctly priced residential rental in Penang usually stays listed for about 25 to 45 days.
The realistic range is 10 to 25 days for clean, furnished units near USM, Bayan Lepas, Queensbay, George Town and Tanjung Tokong, and 60 to 90 days or more for overpriced, unfurnished or poorly photographed units.
Compared with one year ago, days on market in Penang look slightly shorter for good furnished units, but not for weaker units that compete mainly on price.
Which months have peak tenant demand in Penang?
Peak tenant demand in Penang is usually in January to March, June to September and November to December.
These peak months are driven by job changes, university and internship cycles, expat relocations, family moves before the new year and hiring around Penang’s industrial and services base.
The lowest tenant demand in Penang is usually around April, May and some holiday-heavy periods, when fewer tenants are actively moving and landlords may need better photos or sharper pricing.
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What will my monthly costs be in Penang as of 2026?
For a normal Penang condo landlord, monthly non-financing costs often take about 18% to 28% of gross rent once service charge, repairs, vacancy and basic ownership costs are included.
On a RM2,300 monthly rent in Penang, a landlord should often budget about RM415 to RM645 per month before mortgage payments, income tax and major one-off repairs.
What property taxes should landlords expect in Penang as of 2026?
As of 2026, a normal Penang condo landlord may pay about RM500 to RM1,500 per year in recurring local property-related charges, or roughly USD 105 to USD 320 and EUR 100 to EUR 300, before income tax.
The realistic annual range can be about RM300 to RM3,000, or roughly USD 65 to USD 640 and EUR 60 to EUR 595, depending on property value, annual value, council area, parcel rent and building type.
In Penang, property taxes and charges mainly come from local assessment tax, quit rent or parcel rent, while rental income tax is calculated separately under Malaysia’s federal tax rules.
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, landlords most commonly pay service charge, sinking fund, fire insurance, assessment tax, quit rent or parcel rent, and sometimes sewerage or internet if the tenancy agreement includes them.
Typical landlord-paid monthly costs can include RM200 to RM500 for service charge and sinking fund, RM10 to RM30 for sewerage, and RM80 to RM150 for internet if included, equal to about USD 2 to USD 105 and EUR 2 to EUR 100 depending on the item.
The common Penang practice is that tenants pay electricity, water and their own internet, while landlords pay building and ownership charges unless the tenancy agreement says something different.
How is rental income taxed in Penang as of 2026?
As of 2026, rental income from Penang property is taxed under Malaysia’s federal income tax system, with net rental income usually added to a resident landlord’s taxable income and non-residents generally facing a flat 30% rate on Malaysian-source taxable income.
Penang landlords can usually claim deductions for costs linked to earning rent, such as assessment, quit rent or parcel rent, repairs, insurance, agent fees, loan interest linked to the rented unit and some maintenance expenses.
Common Penang-specific mistakes include treating capital renovations as normal repairs, forgetting parcel rent or assessment tax, ignoring unpaid IWK or utility issues, and assuming a seaside or expat-facing unit has no vacancy risk.
We cover these mistakes, among others, in our Sources and methodology: we used LHDN tax-rate information, MBPP and Indah Water. We focused on normal long-term residential landlords. We then added our own landlord-risk checklist for 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.
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 / JPPH publications | NAPIC is Malaysia’s official property data centre under JPPH and the Ministry of Finance. | We used it to anchor Penang housing supply, prices, overhang and market direction. We treated it as the official baseline, then adjusted rent estimates with live listing evidence. |
| NAPIC data visualisation | This official dashboard gives state-level property transaction, stock and index data. | We used it to compare Penang with wider Malaysian residential trends. We used it mainly for price pressure and supply context, not asking rents. |
| PropertyGuru Malaysia Penang rentals | PropertyGuru is one of Malaysia’s largest property portals and shows current asking-rent listings. | We used it to read live asking-rent depth and current listed supply. We discounted asking rents slightly because final signed rents can be lower. |
| PropertyGuru studio Penang rentals | This page gives a useful live sample of studio condo listings in Penang. | We used it to estimate studio rents in Penang. We cross-checked the result with Mudah and iProperty-style listing ranges. |
| iProperty Penang rentals | iProperty is a major Malaysian property portal with broad Penang rental inventory. | We used it to cross-check PropertyGuru’s listing depth and rent ranges. We used it especially for apartment-level evidence outside luxury condos. |
| Mudah Penang 2-bedroom rentals | Mudah has broad mass-market listings, including lower-cost flats and normal condos. | We used it to avoid overestimating rents from premium portals. We used it to capture mainland, Gelugor, Jelutong, Bayan Lepas and low-cost examples. |
| DOSM household income | DOSM is Malaysia’s official statistics agency. | We used household income to test affordability and tenant demand. We compared likely Penang rents with realistic urban income levels. |
| DOSM / OpenDOSM labour data | This is Malaysia’s official open labour-force dataset. | We used it to judge job-market strength. We linked stable employment to rental demand in Penang’s working neighborhoods. |
| Penang Institute statistics | Penang Institute compiles Penang socio-economic dashboards from official government sources. | We used it for Penang-specific labour, population and cost-of-living context. We used it to avoid relying only on national averages. |
| Penang Economic Outlook 2026 | This is a Penang-focused economic outlook from a recognised policy institute. | We used it to assess 2026 rent-growth drivers. We linked Penang’s manufacturing, services, exports and tourism exposure to tenant demand. |
| InvestPenang E&E sector | InvestPenang is the state’s investment promotion agency. | We used it to explain the Bayan Lepas and Batu Kawan rental demand base. We treated the semiconductor cluster as Penang’s unique rental driver. |
| MRT Corp Mutiara Line | MRT Corp is the official project owner for the Penang LRT Mutiara Line. | We used it to identify future transit-linked rental corridors. We did not assume the LRT is already operating in 2026. |
| USM main campus | USM is the official university source for its Penang campus. | We used it to locate university-driven rental demand. We focused on Gelugor, Minden, Sungai Dua and Bukit Gambier. |
| MBPP assessment tax | MBPP is the local authority for Penang Island. | We used it for landlord property-tax obligations on the island. We separated local assessment from quit rent, parcel rent and income tax. |
| LHDN tax rates | LHDN is Malaysia’s official tax authority. | We used it for rental-income taxation. We treated long-term residential rent as taxable net income under Malaysia’s federal tax system. |
| Indah Water domestic charges | Indah Water is Malaysia’s national sewerage company. | We used it for sewerage-cost treatment. We assumed tenants usually pay usage utilities, but landlords must monitor unpaid accounts. |
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