3 most expensive neighbourhoods in Penang, Malaysia

Gurney Drive is well known and continues to be the most preferred location by investors. This road is characterised by high-end condominiums, prime shopping malls Gurney Plaza and Gurney Paragon, landed properties and commercial properties. It is also the tourist spot for street food.

This seafront promenade along Gurney Drive will be developed into a recreational waterfront project known as Gurney Wharf. The project, a partnership between the Penang State Government and Think City, is expected to deliver significant new opportunities for Penangites via publicly accessible waterfront promenades plus retail, education, lifestyle and transport amenities. The proposed Gurney Wharf concept masterplan encompasses four distinct areas: seaside retail F&B, water gardens, beach and coastal grove.

This project spans 40 acres out of the 131.09-acre reclaimed land along Gurney Drive and will be developed in two phases. Phase 1, known as Priority One, will feature a children’s playground, skate park, viewing deck, promenade pavements, hawkers’ kiosks, landscape and recreational park and an open car park. It was completed in early 2024.

Phase 2, known as Priority Two, will consist of a hawker centre, a north vantage point viewing deck, additional hawker kiosks, a multi-storey car park, an open car park, a boardwalk and the beachfront, a water garden, a stormwater channel, the water taxi jetty, and part of the water body reclamation. The entire project is expected to be completed by 2025.

Notable high-end condominiums along Gurney Drive include Gurney Paragon Residences, 8 Gurney Condominium, 11 Gurney Condominium, Silverton, Gurney Beach Resort Condominium, The Regency and the new Setia V Residences.

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One of the most famous areas in Penang, the upcoming projects within this area are expected to enhance the ecosystem, promote a conducive lifestyle, and attract more investors. With land scarcity, a growing population, and vibrant business activities in the neighbourhood, we anticipate that the property values of landed and stratified properties in the area will continue to hold and rise gradually.

These are the three highest transactions of condominiums spanning 2020-2021:

Penang’s first luxury branded residence, Marriott Residences, is also located along Gurney Drive. Featuring a range of small units from 850 sq ft to 3,134 sq ft, selling prices started from RM1.5 million to over RM6 million.

The development, together with the Marriott Hotel and Executive Apartments, was completed in December 2023 and contributed to two out of the three highest transactions of condominiums over a three-year period (2022–2024):

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Seri Tanjung Pinang, a reclamation project by Eastern & Oriental Berhad (E&O), comprises two phases. It is situated on the northeast coast of Tanjung Tokong between George Town and the famous Batu Ferringhi beaches. The first phase, Seri Tanjung Pinang 1 (STP 1), comprised 240 acres of reclamation land and was completed in 2006.

The development of the second phase, Andaman Island (previously known as Seri Tanjung Pinang 2 (STP 2)), commenced in 2016 and is currently still ongoing. The site, spanning 760 acres, is located right opposite Gurney Drive. It is planned to be a catalyst of growth for the high-profile neighbourhood which offers unique architecture and design inspired by Penang’s unique Straits-eclectic architecture as well as good amenities.

Eastern and Oriental Bhd (E&O) has also commenced the launch of its next iconic address called the Andaman Island. Located just across the waterway from STP 1, it is planned for an integrated township consisting of mixed residential, commercial, retail, health and wellness as well as education. The well-planned master plan will feature smooth connectivity and sustainability, offering a balanced lifestyle. The Meg will be the first project on Andaman Island, offering freehold serviced apartments consisting of 1,020 units housed in two blocks spread over four acres of land.

The reclamation of STP 1, an upper-class residential suburb of Tanjung Tokong, will feature mixed-use components with seafront villas, semi-detached homes, contemporary terraces, high-end condominiums, executive apartments as well as low- and medium-cost apartments and other amenities like Straits Quay retail marina. Notable existing and completed developments include Seri Tanjung Pinang landed properties, Quayside Seafront Resort Condominiums, City of Dream and Straits Residences. STP enjoys wide views of the Andaman Sea—it is one of the most sought-after residential addresses among locals and international purchasers.

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The ongoing reclamation projects for Phase 2, known as Andaman Island, together with Gurney Wharf and the Penang Transport Master Plan (PTMP), are expected to enhance the surrounding areas, boosting the property market performance here and in Gurney Drive. Overall, the seafront Seri Tanjung Pinang project certainly appears to be a prime investment.

These were the three highest transactions of bungalows over a five-year period:

The project also offers plots of land for purchasers to build their own homes, and these were the three highest land transactions over a 5-year period:

The market has remained robust in the last three years, with these being the three highest transactions of bungalows over 2022–2024.

Similarly so for vacant plots, with these being the two highest transactions over the most recent three years (2022–2024):

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Pulau Tikus is a mature residential area with expensive high-rises and older established homes and neighbourhoods. An upper-class little city named after a small rocky island shaped like a mouse, it is situated just behind Gurney Drive and close to George Town. It is also home to Penang’s Governor, Chief Minister, and mayor, as well as the consulates for China, Indonesia, Japan, and Thailand. A small minority of Eurasians, Thais, and Burmese also reside here.

This established upper-class neighbourhood consists of mansions, colonial buildings, bungalows, and semi-detached and terraced houses. The neighbourhood enjoys easy access to amenities like hospitals, schools, and malls.

Most wealthy people who want privacy prefer this area because of the tranquil living environment amidst nature. Apart from luxury and stratified houses, Pulau Tikus also offers vacant residential plots.

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Saw forecasts that the values of properties in Pulau Tikus will remain resilient due to the residents’ profiles and the older, established neighbourhood status.

The three highest transactions of bungalows over a five-year period support this:

While the three highest land transactions over a five-year period appear to support this:

In the last three years, the area has seen significant movement, with these being the two highest transactions of vacant plots over 2022–2024:

Pulau Tikus is known for having beautiful bungalows and these were the three highest transactions for this typology over the last three years (2022–2024), confirming there is still a healthy appetite for them:

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