Penang's property market split into two speeds in the first quarter of 2026: headline prices kept rising, led by landed homes, even as the pile of completed-but-unsold high-rise units grew. For buyers, that gap is the story - it points to where the deals are, and where they are not.

The numbers (Q1 2026)

House price index: 225.9 points, up 3.7% year-on-year - more than double the national average of 1.7% - but down 0.8% quarter-on-quarter from 227.7 in Q4 2025.
Average house price: up from RM488,467 to RM506,616 over the year, a gain of roughly RM18,000.
Landed leads: terrace houses were the standout, their index up 5.5% year-on-year to 204.0.
High-rise lags: high-rise units, which carry the heaviest weighting in Penang's index at 52.2%, rose a more measured 3.4%.
Overhang climbing: completed unsold residential units reached 3,165, up 16% from 2,729 a year earlier - the 5th-highest overhang among states, behind Perak, Johor, Selangor and Kuala Lumpur.

Figures are from NAPIC's Q1 2026 data, as reported by Penang Property Talk and its overhang breakdown.

A two-speed market

Landed is the seller's side. Scarce island land and steady family demand keep terrace and other landed homes firm, and prices there are still climbing.
High-rise is the buyer's side. A 16% jump in completed unsold stock means more finished, empty condos competing for the same buyers - that is negotiating leverage, and a reason to be selective.
Momentum is cooling. The 0.8% quarter-on-quarter dip in the index suggests the fast run-up is moderating, not reversing.

What it means for buyers

If you want landed, expect to pay up and move fast - discounts are thin.
If you want a high-rise unit, you have room to negotiate, especially on completed unsold stock where developers want to clear inventory.
Watch the specific project's unsold count, not just the area average - overhang is very building-specific.

Editorial view

Rummah News reads Penang's Q1 as a healthy, if uneven, market. Rising landed prices and a cooling high-rise segment are exactly what you would expect late in a cycle where land is scarce and high-rise supply has run ahead of demand. The rising overhang is a caution, not a crash signal - but it does hand condo buyers real leverage they did not have two years ago.

Practical takeaway

Anchor every offer to real sold prices, not asking prices - check Penang transaction history before you negotiate.
For high-rise, target completed unsold units and push on price; browse Penang condos for sale and compare against new launches.
For landed, move decisively - see current Penang landed homes for sale.
Size your loan first with the Rummah loan qualifier so you can act fast when the right unit appears.

What to watch next

The key numbers for the rest of 2026 are the high-rise overhang trend and whether the quarter-on-quarter softening continues. If unsold high-rise stock keeps building, expect sharper developer incentives - good news for patient condo buyers, less so for owners hoping to resell into a crowded market.