These buildings attract the same buyer. Both are freehold condos on Tanjung Bungah's hillside, both have sea views from the upper floors, and both draw families from the nearby international schools and British retirees who want quiet more than nightlife. Several of my UK clients have bought at Waterstone, and Alila 2 is the building I'd put next to it on any shortlist. The difference comes down to one question: do you want to move in now, or are you happy to wait until 2028 for something new? And if you want to move in now but Alila 2 is more than you need, there's a third building worth seeing: Mira Residence, by the same developer as Waterstone, finished in 2016 and noticeably cheaper.
Key takeaways: Alila 2 is finished, with larger homes from 1,905 sq ft and grounds that are nearly half garden; asking prices start around RM1.68M. Waterstone is a new launch expected in 2028, with smaller homes from 1,334 sq ft and a lower entry price of about RM1.29M. Per square foot, the finished Alila 2 is often the cheaper buy. Choose Alila 2 for space, greenery and certainty; Waterstone for a new building and time to pay; Mira Residence for a finished family home at the most approachable price of the three.
The three buildings at a glance
| Alila 2 | Waterstone | Mira Residence | |
|---|---|---|---|
| Developer | Hunza group | BSG Property | BSG Property |
| Status | Completed (late 2010s) | Under construction, expected 2028 | Completed 2016 |
| Homes | 270 in two towers (33 and 34 storeys) | 365 in two 39-storey towers | 376 in two 32-storey towers |
| Homes per floor | About 5 | 6 | 6 |
| Home sizes | 1,905 to about 5,789 sq ft | 1,334 to 2,195 sq ft | 1,352 to about 3,642 sq ft |
| Entry price | About RM1.68M (about £308,000) | About RM1.29M (about £236,000) | About RM850,000 (about £156,000) |
| Price per sq ft | Roughly RM880–1,150 | About RM965 at entry | Roughly RM630–900 |
| Setting | 9.8 acres, 47% trees and gardens (developer figure) | Off Jalan Loh Poh Heng, beside Hillview Garden | Jalan Lembah Permai, 10 ft ceilings |
| State levy for foreign buyers | 3% | 1.5% up to RM1.5M, 3% above | 1.5% up to RM1.5M, 3% above (RM1M+ units only) |
Space: Alila 2 wins clearly
The smallest home at Alila 2 is 1,905 sq ft, bigger than Waterstone's largest four-bedroom layout. If you want a guest suite for visiting family, a proper study, or simply the feeling of a house rather than a flat, Alila 2 gives you more room for the money.
That's also why the price comparison is closer than it first looks. Waterstone's entry homes cost about RM965 per square foot. Alila 2 often trades between RM880 and RM1,150 a square foot, so for the same space, the finished building can be the better deal.
Grounds and views: Alila 2's strongest card
Alila 2 sits on a 9.8-acre site about 223 ft above sea level, and the developer says nearly half of it is trees and gardens, with more than RM12 million spent on landscaping. That's rare in Penang, and it's the main reason people who see it choose it. You get the sea on one side and green hills on the other.
Waterstone also offers sea and greenery views from its upper floors, set between the hills and the coast. But it's a new building on a tighter site, and gardens take years to mature. If landscaping matters to you, Alila 2 is already where Waterstone hopes to be in a decade.
New versus finished: Waterstone's real advantage
Waterstone's case is newness and timing. You get a brand-new home with new lifts, new pipes and a full defect warranty period, and you pay in stages over the next two years rather than all at once. If you're planning to retire in 2029 or 2030, that timing can work well.
There are trade-offs for a UK buyer. You're committing to a building you can't yet stand in, so check the floor plan, orientation and floor carefully. Your stage payments are in ringgit while you earn or save in pounds, so currency moves will change what each payment costs you. And new buildings have a settling-in period while defects are fixed and the management finds its feet.
With Alila 2 you see exactly what you're buying: the view from that window, the state of the building, the people who live there. You can move in within months.
Costs for a foreign buyer
Both are open to UK and other foreign buyers, since both are above the island's RM1M minimum for condos. The difference is the state levy. Waterstone homes at RM1.5M or less pay a reduced 1.5% levy; every Alila 2 home is above RM1.5M and pays 3%. On a RM1.29M Waterstone home, that levy is about RM19,350; on a RM1.95M Alila 2 home it's about RM58,500.
Everything else is the same: the flat 8% foreign-buyer stamp duty, a RM10,000 state consent fee and legal fees on a fixed scale. All in, budget about 13–14% on top of the price with a mortgage. The UK buyer's guide walks through each step.
Running costs favour Alila 2 more than you'd expect. Its service charge is about RM0.30 per square foot a month, modest for a building with these grounds. Check Waterstone's expected charge with the developer before you sign.
Renting it out
If you'll let the home for part of the time, both will rent mainly to families at the nearby international schools and to long-stay professionals. Furnished Alila 2 homes were listed at about RM6,000–8,200 a month in late 2026. Waterstone has no rental record yet. Short-term holiday letting isn't allowed in condos on Penang Island under the 2026 homestay by-law, so plan on long lets either way.
Mira Residence: the finished middle option
Mira Residence sits between the other two in almost every way. It's finished, like Alila 2, so you can see your view and move in within months. Its homes are smaller than Alila 2's but bigger than Waterstone's entry layouts, from about 1,352 sq ft to duplexes of around 3,642 sq ft, with 10 ft ceilings and just six homes per floor. And it's the cheapest of the three, with listings from about RM850,000 to RM2.15M in late 2026.
What you give up is Alila 2's gardens and Waterstone's newness. Mira was completed in 2016, so ask for the management accounts and the sinking fund balance. Foreign buyers need a unit priced at RM1M or more, which usually means the 1,635 sq ft layouts and up. MM2H participants can look at every unit, because they can buy from RM500,000 (residential, up to two homes). Furnished 1,635 sq ft homes were listed for rent at about RM4,500–4,800 a month in September 2026. The full Mira Residence review has more.
Which one I'd point you to
Choose Alila 2 if you want to move in within the year, want the most space and the best grounds for your money, or are coming from a UK house and dread the feeling of a small flat.
Choose Waterstone if you're planning two or more years ahead, want a brand-new home, prefer a lower entry price, or like the idea of paying in stages.
Choose Mira Residence if you want a finished family home now at the lowest price of the three, and don't need Alila 2's grounds.
If it's between Waterstone and Mira, the Waterstone vs Mira Residence comparison goes deeper. Full reviews: Alila 2 and Waterstone. Project pages: Alila 2 and Waterstone.
Zac’s Take
Zac Ong
For buyers who love Tanjung Bungah's hillside, these are the two to compare. Waterstone wins on newness and entry price; Alila 2 wins on space, greenery and certainty, and often on price per square foot too. For a UK buyer moving in within the next year, I'd usually start with Alila 2. For someone planning for 2029 and comfortable buying off-plan, Waterstone makes a lot of sense.
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📲 Compare current units at bothSources: Alila 2 details from the Hunza group's project page; Waterstone details from BSG Property material and EdgeProp's 2026 coverage. Asking prices and rents from PropertyGuru, EdgeProp and Mudah listings in late 2026. Foreign-buyer rules from the Penang state schedule and Budget 2026; short-term rental rules from Penang's Private Homestay By-Law 2026.