Penang real estate market — prices, rental yield and trend

• Average price: $2,198 / m²
• Gross rental yield: 4.41%
• Net rental yield: 3.09%
• Transaction cost: 5.7%
• Price basis: local-market average

Residential property in Penang averages $2,198 per square metre. That makes it the 201st most expensive of the 236 markets in the set.

What a buyer pays in Penang

The $2,198 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 5.7% of the price here. On a 100 m² apartment at the average price that is roughly $12,527 on top of the $219,780 purchase price. That is below the 10.3% median across the set, which shortens the time it takes for a purchase to break even. Against the Malaysia national average of $2,085, Penang carries a 5.4% premium — the gap between this market and the country as a whole. Among the other Malaysia markets we track, Johor Bahru at $2,024 is 8.6% cheaper.

What it earns

A square metre lets for about $8.1 a month. Against a purchase price of $2,198 per square metre that is 4.4% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 186th of 269 markets by gross yield. Rental income is taxed at 30%, which takes the yield down to 3.1% net. The 1.3-point difference between the gross and net figure is the part most listing sites leave out.

How the tax works. Flat 30% for a non-resident individual on net rental income with no personal reliefs and no tax-free band (Income Tax Act 1967 § 4(d), Schedule 1 Part II); with no expenses claimed, net equals gross. There is no withholding on rent in Malaysia; the owner self-assesses on Form M. Source: PwC Malaysia.

Who can buy in Penang

Freehold, subject to a minimum price and state approval. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Penang is built from asking prices from listings. It was last refreshed on 2026-10-17. We rate our confidence in this market’s data low — treat the figures as indicative and check them before acting. We recompute every market the same way, which is what lets Penang be compared with a country average or another city.

Sources: Numbeo city page · numbeo.com. Snapshot: 2026-10-17.