This article first appeared in City & Country, The Edge Malaysia Weekly on November 10, 2025 - November 16, 2025

The Penang landed residential property market showed very little improvement overall in the second quarter of 2025, with property values for most schemes holding steady year on year (y-o-y) and quarter on quarter (q-o-q), according to Nawawi Tie Leung (NTL) Property Consultants Sdn Bhd executive director and regional head of research and consulting Saleha Yusoff when presenting The Edge Malaysia | Nawawi Tie Leung Property Consultants Penang Housing Property Monitor 2Q2025.

She highlights that the landed residential property market on both the island and mainland is being influenced by a new generation of homeowners. “The prices of landed properties on Penang Island have remained stable or recorded modest growth as the younger generation shows a stronger preference for vertical living, such as condominiums and apartments, due to a lower maintenance burden and greater affordability.”

She adds that in areas such as Seri Tanjung Pinang, newly launched developments are entering the market at higher price points compared with existing properties. This has created a more competitive landscape, thereby limiting price growth in older developments.

“All [landed residential] schemes [on the island] reviewed this quarter [2Q2025] didn’t show any price growth compared to the previous quarter [except for one]. However, we believe prices in Gelugor, Tanjong Bungah and Tanjung Tokong will remain strong,” Saleha notes.

According to the data, Alila Homes in Tanjong Bungah was the only landed residential scheme that showed y-o-y price improvement to RM1,200 psf in 2Q2025 from RM1,100 psf a year earlier for a 9% uptick.

As for landed residential schemes on the mainland, prices remained stable or recorded modest growth because the younger generation prefers to live in high-rise developments, says Saleha.

“The increasing supply and competition from both upcoming landed and high-rise developments have kept existing landed property prices stable on the Penang mainland. Most of the [landed residential] schemes [on the mainland] reviewed showed zero growth. Prices for projects in major employment hubs such Batu Kawan, Bukit Mertajam and Bertam are expected to remain strong,” she adds.

Some of the notable upcoming developments are concentrated in areas like Bertam/Tasek Gelugor (such as Setia Fontaines and Scientex Tasek Gelugor), Alma (such as Permatang Sanctuary and Jesselton Hills) and Batu Kawan (such as Eco Sun, Forescape and Seiras Residence).

The schemes that showed price movements q-o-q and y-o-y were Bandar Tasek Mutiara (up 3% q-o-q and y-o-y to RM360 psf from RM350 psf) and Eco Horizon Phase 1 (down 2% q-o-q and y-o-y to RM550 psf from RM560 psf).

Other schemes that showed a y-o-y price uptick included Bandar Putra Bertam’s 2-storey terraced houses (up 6% to RM350 psf from RM330 psf), Bandar Putra Bertam’s 2-storey semi-detached houses (up 5% to RM230 psf from RM220 psf),Taman Santuari (Sanctuary Garden) semi-detached houses (up 3% to RM340 psf from RM330 psf) and Taman Villa Mutiara Indah’s semi-detached houses (up 4% to RM250 psf from RM240 psf).

In terms of the high-rise residential property market, the monitor indicates minimal activity for schemes on the island and mainland.

For high-rise residential schemes on the island, Saleha says: “[High-rise] price growth has remained stable without sharp increases, not only due to the natural wear and structural ageing of older buildings, but also because these developments typically lack the modern amenities and specifications found in newer projects. Prices in George Town, Tanjong Tokong and Tanjong Bungah are expected to remain strong.”

Moreover, as the younger demographic prefers to live vertically in newer developments with affordable prices and modern facilities and design, the performance of older schemes has been impacted. As a result, older high-rises, particularly those in less strategic locations or with outdated features, are increasingly struggling to see price gains in today’s competitive landscape, she adds.

According to the data, most of the projects sampled recorded minimal or no growth in transacted prices compared with the previous year. Nevertheless, a modest improvement was observed in 2Q2025.

Notably, Miami Green (Pantai Miami) registered a 7% q-o-q and 7% y-o-y increase to RM450 psf from RM420 psf. The Tamarind rose 5% q-o-q and 6% y-o-y to RM850 psf, from RM810 psf in 1Q2025 and RM800 psf in 2Q2024.

Artis 3 recorded a 3% q-o-q and 3% y-o-y increase to RM620 psf from RM600 psf, while Setia Skyvista saw a 4% q-o-q and 4% y-o-y improvement to RM520 psf from RM500 psf. Summerskye @ Ideal Vision Park edged up 1% q-o-q and 1% y-o-y to RM590 psf from RM585 psf, while One Foresta posted a 2% q-o-q and 2% y-o-y increase to RM510 psf from RM500 psf.

Schemes with flat q-o-q growth but a slight y-o-y improvement were Mira Residence (up 1% to RM730 psf from RM720 psf) and Sandiland Condominium (up 2% to RM610 psf from RM600 psf).

As for high-rise residential developments on the mainland, secondary market property values have remained flat, partly because more new landed homes are being developed in well-planned townships such as Bandar Cassia, Bandar Tasek Mutiara and Bukit Mertajam, which offer modern layouts, clubhouse facilities and sustainable features, says Saleha.

“These new products compete directly with older resale high-rise units, which usually lack modern design, gated security or community amenities. As a result, buyers prefer new launches, keeping secondary-market demand for high-rises soft and price appreciation muted. However, we expect prices in major business hubs, such as Butterworth and Bandar Cassia, to remain strong.”

Saleha observes some migration of demand towards high-rise living, particularly among smaller households and younger professionals working near industrial hubs like Batu Kawan and Bukit Minyak. These buyers are drawn by the affordability, developer incentives like zero down payment and lifestyle facilities such as pool, gym and security.

“However, this segment is still smaller than the landed property market, and the shift is gradual, not dominant. In our opinion, the high-rise appeal adds incremental pressure but is not the main factor behind stagnant landed home prices,” she explains.

Referring to the monitor, only three high-rise residential schemes on the mainland recorded price movements on both a q-o-q and y-o-y basis. These were Orange Regency Condominium (Pangsapuri Regensi Oren), which increased 1% q-o-q and 1% y-o-y to RM365 psf from RM360 psf; Woodsbury Suites, which rose 1% q-o-q and 1% y-o-y to RM495 psf from RM490 psf; and Utropolis Utama, which also recorded a 1% q-o-q and 1% y-o-y increase to RM635 psf from RM630 psf.

There are several hotspots that homebuyers and investors should keep an eye on on Penang Island and the mainland. On the island, the hotspots are the George Town heritage zone and central business district (CBD), Gurney Drive and Bayan Lepas/Teluk Kumbar, says Saleha.

She describes George Town as a mature high-demand urban core area. The key demand drivers include strong tourism numbers, cultural regeneration and heritage-led projects/placemaking that support short-stay rents. It also has a variety of F&B and boutique retail outlets with close proximity to the CBD.

This market is ideal for investors who are looking for short-stay accommodation. “Focus on small units or boutique serviced apartments near the heritage zone with strong management to ensure consistent yield,” she says.

With regard to Gurney Drive, its prime seafront corridor and high-end lifestyle are popular with expatriates and retirees. The market is ideal for homebuyers and long-term investors. Saleha suggests that interested parties look at premium units with a seaview and full facilities for strong long-term capital preservation.

The Bayan Lepas/Teluk Kumbar area is an electrical and electronics (E&E) hub as well as a growth corridor near the Penang International Airport. The key drivers here are the expansion of the semiconductor and tech sector, airport logistics and a high concentration of working professionals. Saleha highlights that investors should look for mid-range high-rise units close to industrial zones and focus on units with rental appeal, such as those with one to two bedrooms.

She also points to the Bandar Cassia/Batu Kawan, Bukit Mertajam/Juru/Perai and Seberang Perai Selatan areas on the mainland.

The property market in Bandar Cassia/Batu Kawan is characterised by its mixed-use township and industrial hub positioning. Key market drivers include a strong employment base in the technology and manufacturing sectors, more affordable housing compared with properties on Penang Island, as well as growing social, leisure and educational amenities. In addition, the planned light rail transit (LRT) system is expected to further enhance accessibility and demand.

According to Saleha, “Focus on modern landed homes or mid-rise residential units near educational institutions and retail hubs. The area holds promising potential for medium-term capital appreciation.”

Meanwhile, the Bukit Mertajam/Juru/Perai area offers a mature suburban industrial corridor with its key drivers being urbanisation, improved connectivity, improving social and leisure amenities, and spillover demand from Batu Kawan. This area’s target market is upgraders and families. Saleha suggests looking at landed homes in established townships and properties that are a value buy for long-term living or rental from the nearby workforce.

Lastly, Seberang Perai Selatan is an affordable growth zone with government-led affordable housing and improved infrastructure, which is ideal for first-time homebuyers. The buying strategy here is to look at low-cost or mid-tier landed homes with values that would increase with the infrastructure growth, she says.

In 2Q2025, the residential supply in Penang increased by 1,729 units from the previous quarter, says Saleha.

“As for 1H2025, the total supply in Penang stood at 583,961 units, an increase of 0.77% from 2024’s total units (579,512 units). Between 1Q and 2Q2025, the highest increase by type and number of units was seen in condominiums and apartments, which added 788 units, accounting for 46% of the new supply, followed by serviced apartments with 418 units. Landed homes, including terraced, semi-detached and detached houses, contributed 145 units,” she adds.

In terms of transactions, Saleha highlights that 4,006 units were transacted in 2Q2025, down 4.41% from 4,191 units in 1Q2025.

She says the Timur Laut district saw the highest transaction volume, with a total of 1,276 units sold during the quarter under review, a slight increase from the 1,242 units in the previous quarter. Seberang Perai Tengah district was the next best performing with 840 units or a 1.08% increase.

However, other districts saw a decline. Seberang Perai Utara led with a drop of 26% to 767 units.

The Timur Laut district covers George Town, Tanjung Tokong, Pulau Tikus, Bayan Lepas and the surrounding areas, while Seberang Perai Tengah includes Bukit Mertajam, Perai, Juru, Bandar Perda and Seberang Jaya. Seberang Perai Utara comprises the Butterworth-Seberang Jaya, Kepala Batas-Bertam and Tasek Gelugor areas.

Overall, the supply of residential units in Penang grew from 526,000 units in 2019 to nearly 580,000 in 2024, although the annual growth has slowed in recent years.

“In contrast, the House Price Index showed volatile but moderate movements, contracting in 2020 and 2021 and rebounding in 2022 and 2023 before stabilising in 2024. Overall, this trend points to a maturing market with steady supply but limited price upside, reflecting value-sensitive demand and market saturation, where housing prices are no longer moving in tandem with the increase in supply,” says Saleha.

Meanwhile, there were very few launches during the quarter under review, she adds.

There was Seiras Residences in Utropolis developed by Paramount Property in Bandar Cassia. This is a co-living serviced apartment development with 411 units.

The developer also launched Paramount Embun Hills in Bukit Mertajam, a gated and guarded project featuring 2-storey terraced houses (built-up: 2,230 sq ft), 2-storey cluster semi-detached homes (built-up: 2,509 sq ft) and 2-storey semidees (built-up: 2,518 sq ft).

Additionally, there was a Rumah Mampu Milik/Rumah Mutiaraku launch of 664 units in Permatang Tinggi, with units priced at RM250,000.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.