Best Condo for Investment in Melaka: 2025 Airbnb Guide

Looking to buy a condo in Melaka for short-term rental investment? You're making a smart move. Melaka's tourism sector has rebounded strongly post-pandemic, with weekend occupancy rates reaching 70-85% in well-located, well-managed properties.

But not all condos are created equal when it comes to Airbnb returns. Some locations consistently outperform others by 2-3x in nightly rates and occupancy.

At iHousing Melaka, we manage properties across the city's most popular tourist areas. Here's our comprehensive guide to choosing the best condo for investment in Melaka.

Why Melaka for Airbnb Investment?

Before diving into specific condos, let's establish why Melaka is one of Malaysia's most promising short-term rental markets:

Tourism Fundamentals

• UNESCO World Heritage Site - Consistent domestic and international tourist arrivals

• 5 million+ tourists annually (pre-pandemic levels, recovering fast)

• Weekend getaway destination - 2-hour drive from KL, 3.5 hours from Singapore

• Year-round demand - No true low season; only fluctuations

Short-Term Rental Performance

• Average nightly rate: RM120-200 for standard 2-bedroom units

• Occupancy rates: 60-75% for well-managed properties

• Monthly revenue potential: RM3,000-6,000 for optimised units

• Annual ROI: 8-12% gross for well-located, well-furnished units

Top Melaka Condos for Airbnb Investment (Ranked)

Based on our management data and market analysis, here are the top-performing condos for Airbnb in Melaka:

1. Parkland Avenue by the Sea (Klebang) - TOP PICK

Why it's our #1 pick:

• Unique beachfront location (rare in Melaka)

• Premium nightly rates (RM180-250/night for 2-bed)

• Family-friendly amenities attract high-value guests

• Strong weekend demand from KL/Singapore

Investment Metrics: Best For:

• Investors seeking premium positioning

• Families and multi-generational groups target market

• Higher budget but higher returns

Special Offer:

iHousing offers flat-fee management from RM200-300/month exclusively for Parkland Avenue by the Sea owners.

2. Silverscape Residence (Bandar Hilir)

Why it performs:

• Walking distance to Jonker Street (5-7 mins)

• City centre convenience

• Strong corporate and tourist demand

• Well-maintained building with good facilities

Investment Metrics: Best For:

• Investors wanting city centre exposure

• Mixed tourist/corporate guest profile

• Mid-range budget with solid returns

3. Shore Residence (Klebang)

Why it's competitive:

• Similar location to Parkland Avenue

• Beachfront views in premium units

• Good resort-style facilities

• Growing reputation among repeat visitors

Investment Metrics: Best For:

• Alternative to Parkland at slightly lower entry

• Investors wanting Klebang exposure

• Good value proposition

4. Melaka Raya Condos (Various)

Why they work:

• Central location, walkable everywhere

• Shopping mall (Mahkota Parade) nearby

• Food and beverage options abundant

• Consistent tourist traffic

Investment Metrics: Best For:

• Budget-conscious investors

• First-time Airbnb investors

• Lower entry, solid returns

5. Klebang Beach Area Condos (Non-Beachfront)

Why they're worth considering:

• More affordable than beachfront

• Still benefit from area tourism draw

• Short ride to main attractions

• Growing infrastructure

Investment Metrics: Best For:

• Highest affordability

• Investors willing to accept lower but stable returns

• Long-term portfolio building

Investment Comparison: Which Condo Type Fits You?

Beachfront vs City Centre

Beachfront wins on: Weekend rates, family appeal, premium positioning City centre wins on: Weekday demand, accessibility, lower entry

Key Factors When Choosing Your Investment Condo

1. Building Rules and Strata Compliance

CRITICAL: Before buying, verify:

• ✅ Short-term rental is allowed (check strata title)

• ✅ No restrictions on guest frequency

• ✅ Parking allocation for guests

• ✅ Guest registration process is manageable

Red flags:

• Strata titles explicitly prohibiting short-term rentals

• Buildings with strict owner-only occupancy clauses

• Limited parking (1 bay per unit is minimum)

2. Unit Selection Within the Building

Not all units in the same building perform equally:

Premium Units Command 15-25% More:

• Higher floors with better views

• Corner units with more windows

• Units away from elevators and noise

• Units with balconies (where available)

Avoid:

• Ground floor units (privacy and noise issues)

• Units adjacent to facilities (pool, gym - noise)

• Units with blocked or undesirable views

3. Furnishing Requirements by Condo Type

Beachfront guests expect: Higher finish levels, resort aesthetics City centre guests expect: Convenience, cleanliness, comfort

4. Management Considerations

Some condos are easier to manage than others:

Easier Management:

• 24-hour security (smooth guest handovers)

• On-site parking (no coordination issues)

• Digital lock compatibility (strata permitting)

• Responsive building management

More Challenging:

• Manual key handover systems

• Strict guest registration processes

• Limited visitor parking

• Unresponsive building management

Investment Scenarios (Real Examples)

Scenario 1: Parkland Avenue 2-Bedroom

Investment:

• Purchase price: RM420,000

• Furnishing: RM30,000

• Total: RM450,000

Performance (well-managed):

• Monthly revenue: RM5,500

• Monthly expenses:

- Management: RM250 (iHousing flat fee)

- Maintenance: RM200

- Internet/Utilities: RM150

- Strata/Assessment: RM200

- Total: RM800

• Monthly net: RM4,700

• Annual net: RM56,400

• Cash-on-cash return: 12.5%

Scenario 2: Melaka Raya 2-Bedroom

Investment:

• Purchase price: RM320,000

• Furnishing: RM22,000

• Total: RM342,000

Performance (well-managed):

• Monthly revenue: RM3,800

• Monthly expenses:

- Management: Custom pricing (WhatsApp for quote)

- Maintenance: RM150

- Internet/Utilities: RM120

- Strata/Assessment: RM180

- Total: RM650

• Monthly net: RM3,150

• Annual net: RM37,800

• Cash-on-cash return: 11%

Questions to Ask Before Buying

1. "Is Airbnb/short-term rental explicitly allowed?"

Don't assume. Get this in writing from the building management.

2. "What's the actual occupancy rate in this building?"

Ask for data from hosts currently operating in the building, not just agent projections.

3. "What's the typical furnishing cost for this building type?"

Budget realistically. Under-furnished units get poor reviews.

4. "How does guest check-in work?"

Digital locks vs key handover makes a huge operational difference.

5. "What management services are available?"

Not all areas have professional management options. DIY might be your only choice.

The iHousing Advantage

At iHousing Melaka, we specialise in maximising returns for condo investors across Melaka's best locations.

For Parkland Avenue by the Sea:

• Flat-fee management: RM200-300/month

• No percentage of your revenue

• Transparent pricing, no hidden costs

For Other Melaka Condos:

• Custom pricing based on your specific property

• Multi-platform listing (Airbnb, Booking.com, etc.)

• responsive guest communication

• Professional cleaning coordination

• Dynamic pricing optimisation

We don't earn more when you earn more. Our flat-fee model aligns our incentives with yours.

Ready to Invest? Get Expert Guidance

Choosing the right condo is just the first step. Professional management can be the difference between 8% and 12% returns.

WhatsApp Us for Free Investment Consultation

We'll help you choose the right condo and calculate realistic returns

Final Thoughts

The best condo for investment in Melaka depends on your budget, risk tolerance, and return expectations.

For maximum returns: Beachfront properties like Parkland Avenue by the Sea command premium rates but require higher investment. For balanced risk-reward: City centre condos like Silverscape offer solid yields with moderate entry points. For first-time investors: Melaka Raya provides an affordable entry point with proven demand.

Whatever you choose, professional management is the key to unlocking your property's full potential.

At iHousing Melaka, we're here to help you every step of the way—from choosing the right condo to maximising its returns.

Related Reading:

• [Melaka Property Market 2025](/blog/melaka-property-market-2025)

• [Short Term Rental Returns Malaysia](/blog/short-term-rental-returns-malaysia)

• [Airbnb Investment Calculator](/blog/airbnb-investment-calculator)