The Malaysian island of Penang is a living museum of colonial architecture.
Its streets are adorned with well-preserved structures that date to the period of British rule, from churches and shophouses to landmarks like Fort Cornwallis. It feels like nowhere else in Asia.

The Town Hall is a British-built administrative building in George Town, the capital of Penang Island in Malaysia.
Penang’s colonial heritage emerged out of the spice trade.
During the 1780s, the Dutch East India Company held a chokehold on this lucrative market through their control of the Straits of Malacca and the Spice Islands.
The British, eager to establish their own foothold in Southeast Asia, turned to a trader named Francis Light. His mission: to secure a strategic port that could serve as both a naval base and trading post.
In 1786, Light found his prize—a largely uninhabited island called Penang. With its deep natural harbor, fresh water supply, and perfect position to control the northern entrance to the straits, it was an ideal location. Soon, Penang was the center of spice production and trade in the region.
Today, Penang is known more for silicon than spices.
In the early 1970s, the Malaysian government established an industrial zone here and the likes of Intel, Hewlett-Packard, and AMD set up overseas assembly plants. It’s now home to more than 300 multinational corporations.
But unlike other Asian cities that underwent rapid modernization, Penang managed to retain its colonial charm.

Penang has an abundance of incredible pre-war architecture, with influences from across Europe and Asia.
Cities like Singapore, Hong Kong, and Shanghai saw much of their colonial architecture demolished in the rush to build modern office towers and apartments. But many of Penang’s historic shophouses and grand colonial mansions still stand.
As colonial buildings disappeared across Asia, Penang’s well-preserved heritage properties became highly sought after and prices are high.
But Penang also has other interesting opportunities, like ocean-view apartments and high-end condos in well-appointed communities.
With these homes, you have easy access to everything this island offers, from its colonial architecture to its beaches and rainforests. Not to mention the outstanding food culture, a mix of Chinese, Malay, and Indian culinary traditions that have merged over centuries.
Penang also has high-quality healthcare facilities, international schools, and there’s a large English-speaking population and well-developed infrastructure.
I asked my team to look into current listings in Penang…here’s what they found.
Tanjung Bungah, Penang
Listing Price: $225,000

The view of the ocean from a condo currently listed in Tanjung Bungah, an area with a unique microclimate meaning it’s often cooler than elsewhere in tropical Penang. The listing is here.
Tanjung Bungah is on Penang’s northern coast, an area that has evolved from a quiet fishing village into a sought-after residential area with great beaches and several international schools. Its location between the hills and sea creates a unique microclimate, often slightly cooler than other parts of the island.
This is a popular expat spot, close enough to the capital, George Town, for convenience (about 15-20 minutes’ drive), but far enough to escape the city bustle.
This charming four-bedroom condo in Tanjung Bungah has 1,400 square feet of living space. The condo has a kitchen, living room, balcony, and air conditioning throughout. Residents and their guests enjoy access to amenities including a swimming pool, gym, playground, BBQ area, sauna, and parking. It’s on the market for $225,000.
Sungai Ara, Penang
Listing Price: $94,500

This three-bed condo in the Pearl Garden development is close to local amenities and a nature reserve. You’ll find the listing here.
Sungai Ara is a rapidly developing suburb in the southern part of Penang. The area has transformed from a quiet rural district into a vibrant residential neighborhood over the past few decades and has a mix of housing options, from traditional village homes to modern condos and gated communities.
With pockets of greenery and the nearby Bukit Gambir Forest Reserve, Sungai Ara has a scenic natural backdrop. The area also has everyday amenities including shopping centers, schools, and local markets.
This 1,100-square-foot condo has three bedrooms and two bathrooms. The community has extensive amenities including a swimming pool, playground, gym, sauna, BBQ area, squash courts and tennis courts.
The listing price for this condo is $94,500. See the listing here.
Jelutong, Penang
Listing Price: $220,500

This condo has sea views and access to some popular street food stands. Listing here.
Jelutong is a suburb on Penang’s eastern coastline. Originally a fishing village, it evolved into an important industrial area in the early 20th century, known for its timber yards and sawmills.
Today, Jelutong is a bustling residential and commercial district. The area is a pleasing mix of old and new. Traditional shophouses and local markets exist alongside modern developments.
Jelutong is known locally for its food scene. The Jelutong Morning Market is one of Penang’s most popular wet markets. Its local delicacies and street food stands draw visitors from across Penang.
This fully furnished two-bed serviced condo in Jelutong has sea views and spans 980 square feet. It’s also been completely renovated. The listing price is $220,500 and you can find out more here.
George Town, Penang
Listing Price: $405,350
Original features meet modern restoration in this elegant shophouse in George Town. Listing here.
Named after Britain’s King George III, George Town is one of Asia’s architectural gems. You’ll see a colorful mix of colonial and traditional architecture and rows of shophouses with a unique “Straits Eclectic” style that blends European, Chinese, and Malay influences.
George Town is a compact, but diverse city. You can easily walk from traditional markets to modern shopping malls, from Chinese clan houses to trendy cafés. Its UNESCO World Heritage status has helped preserve not just the buildings but also the traditional trades—you can still find joss stick makers, signboard carvers, and rattan weavers practicing their crafts.
As I say, heritage homes here don’t come cheap. But these are among the most unique properties you can own in this region. Here’s an example…
This refurbished heritage shophouse has been fully renovated. The layout includes spacious open-plan rooms and strategically reconstructed rear stairs that could enable the shophouse to become dual tenancy. There are four bathrooms.
The shophouse is listed for $405,400, you can view the listing here.
George Town, Penang
Listing Price: $1.4 million
This incredible colonial shophouse has been transformed into an ultra-modern luxury home. The listing is here.
Here’s another example of one of these properties from the top end of the market.
This stunning three-bedroom heritage shophouse on historic Muntri Street is in the heart of George Town’s historic district. The refurbished shophouse has high ceilings and an open-plan layout. The first floor has a chef’s kitchen with a center island.
Two staircases provide access to the upper floors and a newly added spiral staircase connects the living and dining areas, and an original staircase links the dining and kitchen areas. The upper level has a suite with a balcony overlooking the backyard and a spa bathroom. A family lounge connects to two additional bedrooms, while an office space provides access to a roof terrace offering views of the heritage district.
The home is currently on the market for $1.4 million and you’ll find all the details here.
Before we close, a few caveats on buying in Malaysia…
In many countries in Asia, there are tight restrictions on foreign ownership of real estate.
In Malaysia, foreigners can buy freehold property. (In fact, it’s the only country where this is possible in Southeast Asia.) But there is a minimum purchase price for foreigners. This amount is regularly adjusted, and it varies by state, and can even vary within state as well.
The amount is often cheaper if you’re also applying for the Malaysia My Second Home residency-by-investment visa, though that comes a requirement to spend a minimum of 60 days per year in the country. So, there are a variety of factors to consider and investigate if you plan to own here.
Ronan McMahon, Founder, Overseas Dream Home & Real Estate Trend Alert
P.S. If you’re interested in any of these listings you should hire an attorney and do your own due diligence. We haven’t done any due diligence on them.
P.P.S. For more listings of overseas dream homes, click here to follow our Your Cheap Dream Home Instagram account.