This article first appeared in City & Country, The Edge Malaysia Weekly on January 12, 2026 - January 18, 2026

Penang’s residential market experienced positive momentum in 3Q2025, with higher transaction volumes and improving buyer sentiment, 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 3Q2025.

“Transaction volume grew 13.5% q-o-q (quarter on quarter), rising to 4,548 units from 4,006 units in 2Q2025, signalling improving buyer sentiment, stronger affordability in selected segments and ongoing absorption of newly delivered stock,” she says.

The state also recorded a 0.51% q-o-q increase in supply to 586,965 units, driven by its affordable housing pipeline.

“Unsold units recorded a slight decline (-2.6%), indicating gradually healthier take-up and better product–market alignment. The numbers fell from 16,206 units in 1Q2025 to 15,786 units in 3Q2025, representing a reduction of 420 units,” she adds.

However, units classified as unsold-not-constructed increased by 158, accounting for 4.05% of the state’s total unsold stock. The unsold-under-construction category remained the largest segment, making up 70.56% of all unsold residential units in Penang.

“The combination of mild supply growth, increasing demand and improving absorption points to a market moving toward equilibrium, rather than overheating,” Saleha says.

“We noted several key drivers behind the positive growth in the third quarter. First, demand for affordable and mass-market housing remained strong. New additions were concentrated in low-cost single-storey terraced houses, flats and terraced homes, which remain the backbone of demand, especially in mainland districts. These segments captured most of the transaction uplift, supported by first-time buyer demand, mainland industrial expansion, such as in Batu Kawan, Bukit Minyak and Bukit Tengah, improved interstate migration and overall employment stability.”

Moreover, buyer confidence returned after a slower 2024, as shown by the 13.5% increase in transaction volume. “The improved buyers’ confidence was supported by flexible financing schemes offered by developers. Penang also offered better price-to-income ratios compared to other states, such as the Klang Valley,” she says.

Saleha adds that the new stock aligns with market needs, with mainland districts delivering affordable and mid-tier stock that match real local demand. Additionally, the marginal decline in unsold units signals fewer mismatched products coming to market.

Several major land acquisitions and new projects in the pipeline, especially affordable and mid-market housing, will support demand and price stability moving forward, impacting the fourth quarter and possibly spilling over into 2026.

Saleha says transit-oriented developments (TODs) linked to the Mutiara LRT Line are expected to outperform over the long term. In addition, strong manufacturing and industrial investment continues to support housing demand, particularly near employment hubs.

“SkyWorld Development Bhd (KL:SKYWLD) acquired a 25.9-acre parcel in Batu Kawan, which is part of a larger 161.5-acre tract in the Bandar Cassia/Seberang Perai Selatan area, to build affordable housing under the scheme Rumah Bakat Baru Madani (RBB). The RBB project and its broader affordable housing programme will deliver units priced from RM225,000 to RM420,000, targeting middle-income households,” she explains.

“Mah Sing Group Bhd (KL:MAHSING) recently completed the acquisition of a 2.83-acre parcel in George Town for its mixed-use development project M Cora, a TOD near the future Bandar Sri Pinang station of the Mutiara LRT Line. Expected built-ups for condominiums and commercial suites are 904 to 1,015 sq ft, with indicative pricing from around RM426,000.

“In the pipeline between 2025 and 2029 are 84 new projects on the mainland, slated to deliver an estimated 19,176 units. Many are terraced homes for the mid- to upper-mid market, signalling sustained supply momentum beyond 2025.”

Saleha also highlights that improved connectivity brought about by the Mutiara LRT Line will help raise demand for nearby residential products.

In addition, continued strong industrial activity will benefit the residential market, she adds.

“Penang saw significant manufacturing investment in the first half of 2025, attracting RM12.5 billion across 86 projects, which reflected a 150% y-o-y jump. The investments are mainly in E&E (electrical and electronics), M&E (mechanical and electrical) and chemicals, driven by FDI (foreign direct investment) from the US, China and the Cayman Islands, creating over 11,000 jobs.

“The growth in manufacturing and E&E industries supports employment creation, which in turn supports housing demand, especially in affordable/mid-market segments close to industrial zones.”

Saleha highlights several new projects on the island and mainland.

Westin Residences, developed by Macrovest Sdn Bhd (VST Group) in collaboration with Marriott International, is a freehold branded residential development located opposite Gurney Plaza and integrated into the Gurney Bay master plan in George Town.

The 69-storey tower will comprise 498 furnished units with built-ups ranging from 1,033 to 3,670 sq ft and priced at RM2 million to RM15 million. The project has achieved an estimated 75% to 80% take-up rate and is scheduled for completion in 2030.

Pinnacle Bukit Gambier, developed by Pinnacle Homes Sdn Bhd, is a freehold high-rise residential development in Gelugor that occupies an 8-acre site and was formerly an abandoned project.

It comprises two residential blocks with 59 storeys each and a total of 982 serviced apartments. Launched in September 2025, the project has recorded take-ups of 50% to 60%. Unit prices range from RM588,800 to RM1.71 million while built-ups are from 1,100 to 1,700 sq ft. It is slated for completion in 2030.

Embun Hills, developed by Paramount Property Development Sdn Bhd, is a 50-acre gated and guarded strata-titled project with 497 units located in Bukit Mertajam on the mainland. The latest launch comprises 2-storey terraced homes (built-up: 2,230 sq ft) and 2-storey cluster semi-detached houses (built-up: 2,509 sq ft), with selling prices starting at RM803,000. It has achieved a 70% to 75% take-up rate, driven mainly by owner-occupiers from Seberang Jaya and Kulim. Project completion is targeted for 2028.

Villuxe 2 within Aspen Vision City in Batu Kawan is a landed residential development comprising 61 units with built-ups ranging from 2,521 to 3,399 sq ft. Each unit is designed around a central courtyard and is near a public park. Scheduled for completion in 2028, the project has achieved a take-up rate of about 50%, with buyers being primarily business owners from the Batu Kawan area who are purchasing for their own stay. Prices start from about RM1.3 million.

Lastly, SkyAwani Pearlmont Residences, located along Jalan Perpustakaan on the mainland, is a freehold integrated development with two 38-storey residential towers alongside retail lots, community facilities and a 25-storey vertical primary and secondary government school, the country’s first.

Residential Phase 1 — comprising Blocks 1B and 1C and launched in late-July 2025 — has 1,046 units across two towers, with prices ranging from RM323,000 to RM410,000. The project is scheduled for completion by end-2029.

Several landed schemes on the island showed price movements, while the rest remained unchanged.

Alila Homes terraced houses in Tanjong Bungah saw prices move up by 1% q-o-q to RM1,215 psf in 3Q2025, and 6% y-o-y. “The increase may be attributed to good maintenance of the development, alongside a time factor as prices have gradually firmed over the years,” says Saleha.

Semi-detached homes in Seri Tanjung Pinang in Tanjong Tokong saw a price increase of 1% q-o-q to RM880 psf and 1% y-o-y.

For semidees in Island Park, Jelutong/Greenlane, prices declined 2% q-o-q to RM550 psf and also 2% y-o-y. According to Saleha, the 2% drop is marginal and could be due to seller-buyer negotiation.

Prices of terraced houses in Island Glades and Jelutong/Greenlane rose 7% q-o-q to RM800 psf, and 7% y-o-y. “The increase may be influenced by the time factor, as prices have gradually increased over time,” she says.

Tree Residency terraced houses in Bayan Lepas recorded a 5% q-o-q price increase to RM1,000 psf, as well as a 5% rise y-o-y. “Price movements may be affected by limited transactions within the development, where a small number of deals can influence average pricing.”

Prices for terraced houses in Setia Pearl Island, Bayan Lepas, increased 3% q-o-q to RM755 psf, and 3% y-o-y.

Lastly, prices of Balik Pulau’s Botanica CT terraced houses edged up 1% q-o-q to RM435 psf, as well as 1% y-o-y.

Over on the mainland, several land schemes showed an increase in value, while the rest held steady.

Prices of terraced houses in Bandar Putra Bertam were unchanged q-o-q at RM350 psf in 3Q2025, but rose 6% y-o-y. According to Saleha, the increase may be influenced by the time factor, as prices have gradually increased.

Meanwhile, the prices of semidees at Bandar Putra Bertam rose 4% q-o-q to RM240 psf, and 9% y-o-y. The price increase may similarly be attributed to the time factor, Saleha notes.

Taman Santuari (Santuary Garden) in Alma saw semidee values remain unchanged q-o-q at RM340 psf, but 3% higher y-o-y.

Prices of terraced houses at Bandar Tasek Mutiara, Simpang Ampat, held steady q-o-q at RM360 psf, but rose 3% y-o-y.

Terraced houses at Eco Horizon (Phase I), Bandar Cassia, saw their prices rise 2% q-o-q to RM560 psf, while y-o-y prices were unchanged.

Meanwhile, semidee prices at Taman Villa Mutiara Indah, Simpang Ampat, increased 4% q-o-q to RM260 psf, and 4% y-o-y.

On the island, several high-rise projects saw price movements, while others remained unchanged.

At Miami Green (Pantai Miami) in Batu Ferringhi, prices were unchanged q-o-q at RM450 psf in 3Q2025, but rose 7% y-o-y. Saleha surmises that the price movements were likely influenced by the limited number of transactions, where individual deals can skew the average pricing.

At Mira Residence, Tanjong Bungah, prices held steady q-o-q at RM730 psf, but increased 1% y-o-y.

At The Tamarind, Tanjung Tokong, prices were unchanged q-o-q at RM850 psf, but rose 5% y-o-y.

For units at I-Santorini, Tanjung Tokong, prices rose 2% q-o-q to RM560 psf and also 2% y-o-y.

Jelutong’s Artis 3 saw unit prices unchanged q-o-q at RM620 psf and 3% higher y-o-y, while Symphony Park prices rose 2% q-o-q to RM600 psf and also 2% y-o-y.

Prices at Setia Skyvista, Sungai Ara/Relau, were unchanged q-o-q at RM520 psf, but 4% higher y-o-y.

Three high-rises in Bayan Lepas saw price increases. Prices at Summerskye @ Ideal Vision Park held steady q-o-q at RM590 psf and increased 1% y-o-y. Tree Sparina @ Ideal Vision Park unit prices rose 2% q-o-q to RM570 psf and 2% y-o-y, while One Foresta unit prices were unchanged q-o-q at RM510 psf but rose 2% y-o-y.

The trend for high-rises on the mainland echoed that on the island, with some schemes showing price movement while others held steady.

Ocean View Residences, Butterworth, saw unit prices climb 6% q-o-q to RM380 psf in 3Q2025, and rise 6% y-o-y. “The price increase is likely driven by infrastructure developments such as the Juru-Sungai Dua elevated highway,” says Saleha.

Also, in Butterworth, unit prices at Orange Regency Condominium (Pangsapuri Regensi Oren) were unchanged q-o-q at RM365 psf and 1% higher y-o-y, while Woodsbury Suites saw prices hold steady q-o-q at RM495 psf but climb 1% y-o-y.

In Bukit Mertajam, The Prominence unit prices rose 1% q-o-q to RM340 psf and 1% y-o-y, while Bandar Cassia’s Utropolis Utama’s unit prices were unchanged q-o-q at RM635 psf and 1% higher y-o-y.

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