Penang’s property market recorded a softer performance in the first half of 2026, with total transactions falling 9.9% year-on-year to 9,960 transactions. The total value of transactions also declined by 3.6% to RM6.76 billion, according to the latest Property Market Report 1H 2026 by the National Property Information Centre (NAPIC).

The residential sector accounted for the largest share of Penang’s property market, with 6,979 transactions worth RM3.19 billion. This represented a 13.1% decline in transaction volume and an 11% decrease in transaction value compared with the first half of 2025. Residential transactions were dominated by properties priced below RM300,000, with 3,189 transactions, followed by the RM300,000 to RM500,000 range with 2,035 transactions. Properties priced between RM500,000 and RM1 million accounted for 1,250 transactions, while 505 transactions involved properties priced above RM1 million.

Despite the softer transaction activity, Penang recorded a significant increase in new residential launches. A total of 2,878 units were launched during 1H 2026, up 79.9% from 1,600 units in the corresponding period of 2025. However, only 283 units were recorded as sold, giving a sales performance of 9.8%, compared with 1.9% for the launches in 1H 2025. Penang recorded the highest number of new residential launches in the Northern Region during the period.

The report also highlights continued pressure from unsold residential stock. Penang had 3,114 completed residential units that remained unsold as at 1H 2026, an increase of 12.2% from the previous half-year. There were also 7,100 residential units under construction that remained unsold, although this was lower than the 7,826 units recorded in H2 2025. The state had a further 135 units classified as unsold but not yet constructed.

In terms of housing supply, Penang had 579,945 existing residential units as at 1H 2026, with another 26,992 units in incoming supply and 18,273 units in planned supply. New planned supply during the period stood at 1,956 units. The relatively large existing and incoming supply base, alongside the slower transaction activity and modest sales performance of new launches, points to a market where supply-demand matching remains an important consideration.

House prices, meanwhile, remained broadly stable. The Penang House Price Index increased marginally by 0.2% year-on-year in Q2 2026P, with the average house price rising from RM502,403 in Q2 2025 to RM503,388. Penang continued to record the highest average house price among the four Northern Region states.

Beyond residential property, Penang recorded 1,074 commercial transactions worth RM980.11 million, while industrial property accounted for 279 transactions valued at RM1.14 billion. Agricultural property recorded 980 transactions worth RM350.18 million.

Overall, the 1H 2026 data shows a Penang property market with stable prices but slower transaction activity, alongside a substantial increase in new residential launches. The rising level of completed unsold units also suggests that the pace and composition of new supply will remain an important factor for the state’s property market going forward.

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