The average home in London cost £550,037 in July 2026, according to the ONS. Convert that at today's exchange rate and you get almost exactly RM3 million, which is the minimum most foreign buyers must pay for a house on Penang Island. But there's a second number most British buyers never hear about: RM500,000, about £92,000. That's the minimum if you're on MM2H, Malaysia's long-stay programme, and it changes what you can buy completely.
So there are really two answers to "can I get a house with a garden in Penang?". This guide covers both: what each route opens up on the northern coast, from the semi-detached enclaves of Batu Ferringhi to the gated villas by Straits Quay, and what owning a house here is really like.
Key takeaways: On Penang Island, most foreign buyers need RM3M for a house, while MM2H participants can buy from RM500,000. With MM2H, the freehold enclaves in Batu Ferringhi (from about RM1.3M) and Nineten in Tanjung Bungah open up. Without it, the main choice is the gated villas at Seri Tanjung Pinang from about RM3.2M. Either way, a house here takes more looking after than a condo, especially if you'll be away for part of the year.
The two routes, in plain English
Malaysians call a house with its own land "landed" property, and Penang sets a minimum price for foreigners who want to buy one.
The standard route: on Penang Island, a foreign buyer can buy a house from RM3,000,000. On the mainland across the bridge it's RM1,000,000.
The MM2H route: if you're part of Malaysia My Second Home, Penang lets you buy a house on the island from RM500,000, up to two homes, though your MM2H tier sets its own property minimum (RM600,000 for Silver, RM1,000,000 for Gold). MM2H is the long-stay pass most retirees use anyway. The main tiers are Silver (USD150,000 fixed deposit, 5-year pass), Gold (USD500,000, 15-year pass) and Platinum (USD1,000,000, 20-year pass), and each tier requires you to buy Malaysian property anyway. The MM2H property tiers guide explains how the deposit and purchase fit together.
Everything else is the same on both routes: an 8% stamp duty for foreign buyers, a state levy of 3% on landed homes, a RM10,000 consent fee, and state consent, which usually takes three to four months. With a mortgage, budget roughly 13–14% on top of the price.
With MM2H: Batu Ferringhi and Tanjung Bungah open up
This is where the MM2H route really pays off. Batu Ferringhi, the island's beach area, has a handful of small freehold enclaves of semi-detached homes and terraces that most foreign buyers can't touch, because they're priced under RM3M. On MM2H, they're all within reach.
| Development | Area | Approx. price | Approx. size | Homes | Completed |
|---|---|---|---|---|---|
| La Ferringhi | Batu Ferringhi | from RM1.32M | about 2,750 sq ft | 20 | 2015 |
| Ferringhi Hills | Batu Ferringhi | from RM1.27M | about 3,255 sq ft | 32 | 2024 |
| Ferringhi Pearl | Batu Ferringhi | from RM1.4M | 3,095–3,359 sq ft | 15 | 2016 |
| Pearl Residences | Batu Ferringhi | from RM2.0M | 3,095–3,359 sq ft | 36 | 2017 |
| Island Resort Villas | Batu Ferringhi | ~RM2.6M (launched RM2.33M) | up to ~6,450 sq ft | 11 | 2012 |
| Nineten | Tanjung Bungah | RM2.5–3.95M | about 4,800 sq ft | 40 | 2013 |
Prices are current asking figures and change with each listing.
A few honest notes on each. La Ferringhi (20 three-storey terraces rather than semi-Ds) and Ferringhi Hills are the most affordable way into a Batu Ferringhi house; Ferringhi Hills is the newest, completed in 2024, and comes from the same developer as Pearl Residences. Ferringhi Pearl is tiny, just 15 homes, so listings are rare. Pearl Residences costs more because it's newer and more complete as a community, and its 36 homes support a fuller set of shared facilities. Island Resort Villas offers the most space, with some villas over 6,000 sq ft, but with only 11 homes you may wait a long time for one.
Tanjung Bungah's Permai neighbourhood is the other place to look. Around Jalan Lembah Permai there are established semi-detached houses on their own plots, listed at about RM950,000 to RM2M in late 2026, close to Tenby school and to Alila 2 and Mira Residence. They're older and not gated, but on MM2H most of them are open to you. The Permai vs Seri Tanjung Pinang guide compares the two areas.
Nineten, in the Permai Village area of Tanjung Bungah, is the pick if you'd rather have hills and greenery than the beach and want a newer home. Its 40 semi-detached homes of about 4,800 sq ft come with a shared pool, gym and 24-hour security, and Tenby and Dalat international schools are both in Tanjung Bungah.
One name to avoid confusing: Ferringhi Pearl and Pearl Residences are different developments by different developers, at quite different prices. Each has its own review: La Ferringhi, Ferringhi Hills, Ferringhi Pearl, Pearl Residences, Island Resort Villas and Nineten.
Without MM2H: the gated villas at Seri Tanjung Pinang
If you're not going the MM2H route, your island options start at RM3M, and most of them are in Seri Tanjung Pinang (STP), E&O's township beside Straits Quay marina in Tanjung Tokong. Its villas sit in gated clusters with their own security, completed mostly between 2009 and 2019.
The entry point is Acacia and Avalon, from about RM3.2–3.3M for homes of roughly 4,000–4,500 sq ft, about £590,000–600,000. Andorra Skyloft Terraces (about RM3.9–4M) is the newest and most tightly held, with just 20 homes. Skye starts around about RM6.4M, Caspian around RM4.6M, and the top tier, Cayman, Abrezza and Martinique, runs from about RM6.5M to RM7.5M. Martinique is the one for land: its plots are far larger than anything else here.
Nearby, the 29-home Amaris enclave starts around RM4M, and Ariza Seafront Terraces on the waterfront has homes from about RM2.7M to RM5M, of which those at RM3M and above are open to you. The larger homes at Nineten and Island Resort Villas can also clear RM3M.
Of course, MM2H buyers can buy here too. STP suits anyone who wants the marina, restaurants and Stonyhurst International School close by. The STP villa guide goes cluster by cluster.
The condo that feels like a garden
If you love Tanjung Bungah but a house doesn't quite work, look at Alila 2. It's a condo, but an unusual one: the developer says 47% of its 9.8-acre hillside site is trees and gardens, homes start at 1,905 sq ft, and the views take in both the sea and the hills. Prices start around RM1.68M, and there's no MM2H requirement, because the RM500,000 condo minimum applies to every foreign buyer. For many people it's the garden life without the gardening. The Alila 2 review has the detail.
What owning a house here is really like
A house in Penang is a lovely way to live, and it's more work than a condo.
Gardens grow fast in the tropics, so you'll want a gardener. A house left empty in the humidity needs airing, the air-conditioning run regularly and someone checking for leaks and mould; many owners pay a caretaker or property manager while they're away. Paintwork, roofs and pumps need attention more often than in the UK. Gated communities also charge a monthly fee for security and shared areas.
Check the title. Some gated houses are held under strata title, the same shared-ownership system as condos, and some under individual title. That affects your fees, the house rules and how you sell, so ask your lawyer before you sign.
And think about selling one day. Penang houses suit long holds. Foreign sellers pay Real Property Gains Tax (Malaysia's tax on property profits) of 30% in the first five years and 10% after that, and costs of 13–14% on the way in take time to earn back.
House or condo?
If you'll live here most of the year and love a garden, a Batu Ferringhi semi-D on MM2H or a villa at STP can be wonderful. If you'll be here three or four months a year, a large condo with good grounds usually makes life easier, with security, pool and gardens taken care of while you're in the UK.
For what different budgets buy, see what £500K, £750K and £1M buy in Penang, and for the whole buying process, the UK buyer's guide. If you'd like me to watch for a particular development, message me on WhatsApp below. I'm Zac Ong (REN 64593, PropNex Penang).
Sources
London house prices from the ONS UK House Price Index for July 2026. Foreign-buyer minimums, levy and consent process, including the RM500,000 minimum for MM2H participants, from the Penang land office (PTG) guidelines updated 1 August 2024; confirm them with your lawyer for your own purchase. MM2H tiers from the programme's published requirements; stamp duty from the Budget 2026 announcement. Project prices, sizes and completion years from developer material and current listings.