Penang New Home Prices Out of Step With Local Incomes, Assemblyman Says

By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 10 November 2026

New home prices in Penang are out of step with what most local households can afford, Bertam assemblyman Datuk Seri Richard Mariakan told the state assembly on 3 November 2026 during the State Budget 2027 debate. Citing Khazanah Research Institute figures, he said only a small share of new supply is priced within reach of lower- and middle-income households.

The figures he cited

MeasureFigure
Households earning under RM6,000 a month37% of households, but only 6% of new supply is priced within their reach
Homes launched in 2024 priced at RM400,000 or more50% of launches, affordable to only 22% of households
Households earning under RM8,000 a month55% of households, able to afford only 24% of new supply
New homes priced RM100,001–RM200,000None
Rumah MutiaraKu affordable homes delivered176,457 units, 80.21% of the 220,000 target for 2030

What he asked the state to do

  • Reassess housing demand by district, using local incomes, household size and purchasing power.
  • Increase the supply of homes priced below RM300,000.
  • Expand rent-to-own and public rental schemes.
  • Make sure transit-oriented development, including the Mutiara LRT line, does not push residents out through rising prices.

He also warned against relying too heavily on electrical and electronics (E&E), which made up 82.3% of Penang’s goods exports in 2025.

Unsold homes in Penang

Separately, MCA Penang secretary Yeoh Cheng Ka said on 6 November that Penang had 3,114 completed but unsold homes in the second quarter of 2026. Of these, 1,603 (51.5%) were priced at RM500,000 or below and 299 (9.6%) at RM1 million or more. He urged a review of housing prices and supply so that new launches match local incomes and real demand.

What it means for buyers

If you are a first-time buyer, focus on what you can comfortably afford rather than what is being launched most. Check whether you qualify for Rumah MutiaraKu or other affordable schemes, compare completed projects as well as new launches, and look at the mainland, where prices are generally lower. Read our guide to the proposed shared ownership model too.

Lower-priced projects in Penang:

ProjectAreaIndicative priceCompletion
Grains ResidenceBukit MertajamRM318,000–RM641,0002027
Taman Harmoni VistaTeluk KumbarRM300,000–RM400,0002027
Iconic HarmonyBukit MertajamFrom RM330,0002028
Montview ResidencesBukit MertajamRM365,000–RM496,0002027
Taman Ara DamaiTasek GelugorFrom RM389,000June 2028

Use our mortgage calculator to check your monthly repayments.

Frequently asked questions

Are new homes in Penang affordable for most households?

According to Khazanah Research Institute figures cited in the assembly, households earning under RM8,000 a month make up 55% of households but can afford only 24% of new supply.

How many unsold homes does Penang have?

3,114 completed but unsold units in the second quarter of 2026, about half of them priced at RM500,000 or below.

What did the assemblyman propose?

More homes below RM300,000, more rent-to-own and rental schemes, and planning by district based on local incomes.

Looking for an affordable home in Penang?

Tell me your budget and I’ll shortlist projects that fit. WhatsApp or call +60 10-313 9113.

Sources

This article is general information based on published reports as of 10 November 2026. It is not financial advice; project prices are indicative and depend on availability.

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