Residential mobility behaviour is about people’s choices and preferences whether to remain at the present house and neighbourhood, or to move out. Moving to another house or neighbourhood entails a deliberate decision that require various considerations by the residents involved especially in dealing with housing adjustments, life neccesities and financial matters. Residents’ perceptions of their housing and neighbourhood can be indicative of their intention to stay in or move out. The act of moving is often asssociated with lower levels of satisfactions with residents’ current housing and neighbourhood environment, thus activating selfpreference and residential mobility. This study aims to identify the determinant factors of neighbourhood quality that influence residential mobility behaviour in neighbourhoods in Penang Island. The nine attributes of neighbourhood quality dimensions included in this study are dwelling features, dwelling utility, neighbourhood facilities, greenery, accessibility, public transportation, environment, economic livelihood, and neighbourhood interaction and attachments. A total of 717 heads of households residing in Penang Island were involved in the questionnaire survey. Using logistic regression method, the study findings reveal that four factors of dwelling features, facilities, neighbourhood environment, and neighbourhood interaction and attachments are significant in influencing residents’ intention to move. Moreover, both internal and external factors of housing and the neighbourhood can influence the residents’ decision to stay in or to move out, thus implying important policy measures for local housing.