Seller guide · Penang
Selling your property in Penang
What you receive depends on the agent fee, legal fee, Real Property Gains Tax and what is still owed to the bank. This guide sets out each cost, the usual timeline and the recorded prices in Penang, so you can price with evidence.
Seller costs
What comes off the sale price
| Cost | Typical amount | Notes |
|---|---|---|
| Agent fee | Up to 3% plus 8% SST | Maximum allowed by the Board of Valuers, Appraisers, Estate Agents and Property Managers; agreed in writing. |
| Your lawyer’s fee | 1.25% of the first RM500,000, 1% of the next RM7 million, plus SST | Solicitors’ Remuneration Order 2023; minimum RM500. |
| RPGT | 0% to 30% of the gain | Depends on how long you have owned it; see below. |
| Loan redemption | Outstanding loan plus any early settlement fee | Check your loan’s lock-in period. |
| Outstanding bills | Maintenance, sinking fund, quit rent, assessment | Settled or apportioned to completion. |
Tax
RPGT: how long you have owned it matters
| Year of disposal | Citizen or PR | Malaysian company | Foreigner |
|---|---|---|---|
| Within 3 years | 30% | 30% | 30% |
| 4th year | 20% | 20% | 30% |
| 5th year | 15% | 15% | 30% |
| 6th year onwards | 0% | 10% | 10% |
Real Property Gains Tax on the chargeable gain. Individuals also get an exemption of RM10,000 or 10% of the gain, whichever is higher.
At the SPA the buyer’s lawyer holds back 3% of the price (7% if the seller is not a Malaysian citizen or PR) and pays it to LHDN towards your RPGT. You file the RPGT return within 60 days of the SPA; any balance is refunded.
Penang rules
What applies to foreign buyers and sellers in Penang
State rules as summarised on the Penang property page; confirm the current position with your lawyer before you sign.
Minimum price, island strata: RM1 million
Foreign individuals and companies may buy a condominium or serviced apartment on Penang Island only at RM1 million or more (state guideline, in force since 1 July 2012).
Minimum price, island landed: RM3 million
Landed homes and landed strata on the island need a price of RM3 million or more, for sale agreements from 1 April 2017.
Minimum price, Seberang Perai strata: RM500,000
On the mainland the strata minimum for foreign buyers is RM500,000 from 28 April 2017. For mainland landed homes, press reports (2017–2019) give RM1 million; confirm with your lawyer.
MM2H and permanent residents
Under the state guideline, MM2H participants may buy from RM500,000 (residential only, up to two units) and permanent residents from RM250,000.
State consent from PTG Pulau Pinang
Every purchase by a foreigner needs State Authority consent, applied for through your lawyer at the Penang Land and Mines Office (Pejabat Tanah dan Galian).
State levy: 3% of the price
The approval levy is 3% of the purchase price, except island strata homes priced from RM1 million to RM1.5 million, which pay 1.5%. It must be paid within 30 days of the approval letter.
Price evidence
What units sell for in Penang
Recorded transactions for projects on this site, as cited on each project page. A price set on evidence sells faster than one set on portal asking prices.
| Project | Figure | Source and date |
|---|---|---|
| Alila2 | RM1,184 psf · typical RM1,139–1,320 psf median, last 48 months | EdgeProp, viewed 2 Oct 2026 |
| Anggun Residences | RM515 psf, a 1,045 sq ft unit, Aug 2025 single recorded sale | EdgeProp project page, Oct 2026 |
| Queens Residences Q2 | RM1,136 psf · typical RM984–1,265 psf median, last 48 months | EdgeProp, viewed 2 Oct 2026 |
| Setia V Residences | RM1,475 psf · typical RM1,280–1,519 psf median, last 48 months | EdgeProp, viewed 2 Oct 2026 |
| Sky @ TriPark | about RM411 psf · range RM377–427 psf median, last 48 months | EdgeProp, Oct 2026 |
| The Tamarind | RM780 psf · typical RM714–879 psf median, last 48 months | EdgeProp, viewed 2 Oct 2026 |
| Vertu Resort | RM512 psf · typical RM469–553 psf median, last 48 months | EdgeProp, viewed 2 Oct 2026 |
Transacted figures from EdgeProp, Brickz or NAPIC as cited on each project page.
Timeline
Steps to sell
- Valuation and pricing (1–3 days): recorded prices, an asking price and the agent fee agreed in writing.
- Marketing and viewings (typically 1–3 months, depending on price and condition).
- Offer and earnest deposit (2–3%) from a buyer whose loan eligibility has been checked.
- SPA signed within about 14 days; the buyer pays the balance of the 10% deposit and the RPGT retention is held.
- Completion usually 3 months from the SPA or state consent, plus a 1-month extension if needed; your loan is redeemed and the balance released.
Straight answers
Frequently asked questions
How much RPGT do I pay if I sell in Penang?
RPGT is a federal tax and the same in every state: 30% of the gain within three years, then 20%, 15% and 0% for Malaysian individuals from the sixth year. Foreigners pay 30% within five years and 10% after.
How long does it take to sell a property in Penang?
Marketing usually takes one to three months for a well-priced unit, then about three months from the SPA to completion, longer if the buyer needs state consent.
Can a foreign owner sell to another foreigner?
Yes, if the buyer meets the Penang rules for foreign buyers (Minimum price, island strata: RM1 million) and obtains state consent; check any minimum holding period in the state rules above.
Should I sell or rent out?
It depends on your loan, the rent the unit can achieve, how long you have owned it (RPGT) and whether you need the cash. Jason can compare both for your unit.
General information by a registered agent, not legal or tax advice. Rates as published for 2026; your lawyer and LHDN have the final figure. Checked October 2026.
What is your Penang property worth?
Send the project and unit size. I reply with recorded prices for similar units, a realistic asking price and what you would receive after costs.