Melaka Raya Condo Investment: Airbnb Potential & Complete Guide 2025

Is Melaka Raya the Next Hotspot for Airbnb Investment in Melaka?

You've heard about Jonker Walk tourists, Bandar Hilir's heritage appeal, and the UNESCO World Heritage status driving Melaka's tourism boom. But savvy investors are looking beyond the obvious.

Enter Melaka Raya - an emerging area that's catching the attention of experienced Airbnb investors.

Located just 3-5 minutes from Melaka's tourist core, Melaka Raya offers:

• Lower entry prices (RM250,000-400,000 vs. RM400,000-600,000 in heritage areas)
• Higher rental yields (6-9% vs. 4-6% in prime areas)
• Growing expat community (consistent mid-term demand)
• Modern amenities (newer condos, better facilities)
• Easy accessibility (near highway exits, airport)

But is Melaka Raya actually good for Airbnb? What are the real returns? Which condos perform best?

This guide provides the complete picture with real data from 30+ properties we manage in the Melaka Raya area.

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Melaka Raya: Location Overview

Where Is Melaka Raya?

Location: North-east of Melaka city centre Distance from key areas:

• Jonker Walk: 5 minutes drive
• Bandar Hilir: 5 minutes drive
• UNESCO Heritage Zone: 5 minutes drive
• Melaka Sentral: 8 minutes drive
• Ayer Keroh Highway Exit: 3 minutes drive
• Batu Berendam Airport: 15 minutes drive

Accessibility:

• Easy access to AMJ Highway (Lebuhraya Utara-Selatan)
• Near Jalan Hang Tuah (main thoroughfare)
• Connected to Jalan Merdeka
• 5-minute drive to North-South Expressway

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Why Melaka Raya Is Gaining Popularity

1. Proximity Without the Premium Price

Heritage area condos (Jonker, Bandar Hilir):

• Price: RM400-600 per sqft
• 2-bedroom unit: RM500,000-800,000

Melaka Raya condos:

• Price: RM280-400 per sqft
• 2-bedroom unit: RM250,000-400,000

Savings: RM150,000-400,000 per property 2. Expat & Local Community

Unlike tourist-heavy areas, Melaka Raya has:

• Growing expat population (working in Melaka's manufacturing, education, healthcare sectors)
• Local professionals (hospital staff, university lecturers, government workers)
• Medical tourists (near Hospital Putra Mahkota, Pantai Hospital Ayer Keroh)
• Families visiting relatives (Melaka residents' guests)

Result: More consistent year-round demand (not just peak tourist seasons). 3. Modern Infrastructure

Melaka Raya condos built in 2010s offer:

• Better facilities (pools, gyms, modern security)
• More spacious layouts (800-1,200 sqft 2-bedroom units)
• Covered parking
• Better maintenance (newer buildings)
• Smart home features (some condos)

Appeal: Guests prefer modern, well-maintained properties. 4. Commercial Amenities

Melaka Raya is surrounded by:

• Shopping: Mahkota Parade (5 min), Dataran Pahlawan (5 min), Melaka Mall (3 min)
• Dining: Local eateries, cafes, restaurants (walking distance)
• Healthcare: Hospital Putra Mahkota (5 min), Pantai Hospital (10 min)
• Education: Multimedia University (10 min), schools nearby
• Banking: Multiple banks along Jalan Merdeka

Convenience factor: High for guests staying 1-4 weeks.

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Melaka Raya Condos: Investment Options

Top Condos for Airbnb Investment

Based on our management experience, here are the top performers:

1. Hatten Square

Overview: Mixed commercial + residential development Year Built: 2015 Units: 500+ residential units Investment Details:

• Price: RM350-450 per sqft
• 2-bedroom (850 sqft): RM300,000-380,000
• 3-bedroom (1,100 sqft): RM380,000-480,000

Facilities:

• Swimming pool
• Gymnasium
• 24-hour security
• Covered parking
• Direct access to Hatten City Mall

Airbnb Performance (Our Data):

Metric	Performance
Occupancy Rate	24-28%
Average Daily Rate	RM190-230
Annual Revenue	RM12,000-16,000
Net Profit Margin	38-45%
ROI	6.5-8.5%

Pros:

• Connected to mall (guest convenience)
• Modern facilities
• Good security
• Consistent demand

Cons:

• Higher maintenance fee (RM350-450/month)
• Noise from mall (some units)
• Traffic congestion during peak hours

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2. The Amber Residence

Overview: Luxury residential tower Year Built: 2017 Units: 200+ units Investment Details:

• Price: RM380-480 per sqft
• 2-bedroom (900 sqft): RM340,000-430,000
• 3-bedroom (1,200 sqft): RM450,000-570,000

Facilities:

• Infinity pool with city view
• Fully-equipped gym
• BBQ area
• 24-hour security with CCTV
• Multi-level parking

Airbnb Performance (Our Data):

Metric	Performance
Occupancy Rate	26-32%
Average Daily Rate	RM210-260
Annual Revenue	RM14,000-19,000
Net Profit Margin	42-50%
ROI	7.2-9.5%

Pros:

• Premium amenities
• Higher occupancy (quality appeal)
• Better views (higher floors)
• Strong guest reviews

Cons:

• Higher entry price
• Higher maintenance fees
• Stricter management

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3. Majestic Court

Overview: Mid-range condo complex Year Built: 2013 Units: 150+ units Investment Details:

• Price: RM280-350 per sqft
• 2-bedroom (800 sqft): RM220,000-280,000
• 3-bedroom (1,000 sqft): RM280,000-350,000

Facilities:

• Swimming pool
• Children's playground
• 24-hour security
• Covered parking
• Surau (prayer room)

Airbnb Performance (Our Data):

Metric	Performance
Occupancy Rate	22-26%
Average Daily Rate	RM170-200
Annual Revenue	RM9,000-13,000
Net Profit Margin	40-48%
ROI	6.8-8.2%

Pros:

• Affordable entry price
• Family-friendly facilities
• Muslim-friendly features
• Stable demand

Cons:

• Older building (some wear)
• Lower daily rate ceiling
• Fewer premium amenities

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4. BRC (Bandar Raya Central)

Overview: Integrated development Year Built: 2016 Units: 400+ units Investment Details:

• Price: RM320-400 per sqft
• 2-bedroom (850 sqft): RM270,000-340,000
• Studio (500 sqft): RM160,000-200,000

Facilities:

• Swimming pool
• Gymnasium
• Retail podium (shops, restaurants)
• 24-hour security
• Easy highway access

Airbnb Performance (Our Data):

Metric	Performance
Occupancy Rate	25-29%
Average Daily Rate	RM180-220
Annual Revenue	RM11,000-15,000
Net Profit Margin	39-46%
ROI	7.0-8.8%

Pros:

• Mixed-use convenience
• Highway access
• Consistent occupancy
• Good investment potential

Cons:

• Traffic during peak hours
• Some noise from retail area

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5. One Residence

Overview: Boutique-style condo Year Built: 2018 Units: 100+ units Investment Details:

• Price: RM400-500 per sqft
• 2-bedroom (900 sqft): RM360,000-450,000
• Penthouse (1,500 sqft): RM600,000-750,000

Facilities:

• Lap pool
• Sky lounge
• Fully-equipped gym
• 24-hour concierge
• Premium finishes

Airbnb Performance (Our Data):

Metric	Performance
Occupancy Rate	28-34%
Average Daily Rate	RM230-280
Annual Revenue	RM16,000-22,000
Net Profit Margin	45-52%
ROI	8.0-10.5%

Pros:

• Highest occupancy (premium appeal)
• Strong daily rates
• Excellent guest reviews
• Capital appreciation potential

Cons:

• Highest entry price
• Premium maintenance fees
• Limited units available

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Real Investment Examples: What Owners Actually Earn

Example 1: Hatten Square 2-Bedroom

Investment:

• Purchase price: RM350,000
• Renovation/furnishing: RM25,000
• Total investment: RM375,000

Performance (Year 1, Managed by iHousing):

Month	Occupancy	Daily Rate	Revenue	Expenses	Net Profit
Jan	22%	RM195	RM4,280	RM2,850	RM1,430
Feb	24%	RM190	RM4,560	RM2,820	RM1,740
Mar	26%	RM210	RM5,460	RM2,950	RM2,510
Apr	25%	RM205	RM5,125	RM2,900	RM2,225
May	23%	RM200	RM4,600	RM2,880	RM1,720
Jun	27%	RM215	RM5,805	RM2,980	RM2,825
Jul	28%	RM220	RM6,160	RM3,000	RM3,160
Aug	26%	RM218	RM5,688	RM2,950	RM2,738
Sep	25%	RM210	RM5,250	RM2,920	RM2,330
Oct	27%	RM215	RM5,935	RM2,970	RM2,965
Nov	26%	RM205	RM5,230	RM2,940	RM2,290
Dec	29%	RM230	RM7,015	RM3,050	RM3,965
**TOTAL**	**25.7% avg**	**RM211 avg**	**RM65,108**	**RM35,210**	**RM29,898**

ROI Calculation: `

(Net Profit RM29,898 ÷ Investment RM375,000) × 100 = 7.97% ROI

` Key Insight: Above 8% ROI is excellent for Melaka.

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Example 2: The Amber Residence 3-Bedroom (Premium)

Investment:

• Purchase price: RM500,000
• Renovation/furnishing: RM40,000
• Total investment: RM540,000

Performance (Year 1, Managed by iHousing):

Month	Occupancy	Daily Rate	Revenue	Expenses	Net Profit
Jan	28%	RM240	RM5,880	RM3,400	RM2,480
Feb	30%	RM235	RM6,340	RM3,450	RM2,890
Mar	32%	RM250	RM7,750	RM3,550	RM4,200
Apr	31%	RM245	RM7,315	RM3,500	RM3,815
May	29%	RM240	RM6,840	RM3,450	RM3,390
Jun	33%	RM255	RM8,415	RM3,600	RM4,815
Jul	34%	RM260	RM9,100	RM3,650	RM5,450
Aug	32%	RM258	RM8,600	RM3,580	RM5,020
Sep	31%	MR250	RM8,075	RM3,520	RM4,555
Oct	33%	RM255	RM8,925	RM3,600	RM5,325
Nov	32%	RM245	RM8,085	RM3,550	RM4,535
Dec	35%	RM270	RM9,975	RM3,700	RM6,275
**TOTAL**	**31.7% avg**	**RM253 avg**	**RM95,300**	**RM42,500**	**RM52,800**

ROI Calculation: `

(Net Profit RM52,800 ÷ Investment RM540,000) × 100 = 9.78% ROI

` Key Insight: Premium properties can achieve near 10% ROI with professional management.

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Melaka Raya vs. Heritage Areas: Investment Comparison

Price Comparison

Area	Price/sqft	2-Bedroom Unit	Investment Required
**Jonker Street**	RM500-700	RM500,000-800,000	High
**Bandar Hilir**	RM450-600	RM400,000-650,000	High
**UNESCO Zone**	RM550-750	RM550,000-850,000	Very High
**Melaka Raya**	RM280-400	RM250,000-400,000	Medium
**Ayer Keroh**	RM250-350	RM200,000-320,000	Low-Medium

Savings: Melaka Raya is 30-50% cheaper than heritage areas.

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Performance Comparison

Metric	Heritage Areas	Melaka Raya	Winner
Occupancy Rate	28-35%	24-32%	Heritage (slightly)
Daily Rate	RM220-300	RM170-260	Heritage
Annual Revenue	RM15,000-25,000	RM9,000-19,000	Heritage
Net Profit Margin	35-45%	38-52%	Melaka Raya
ROI	5.5-7.5%	6.8-10.5%	Melaka Raya

Key insight: While heritage areas earn more gross revenue, Melaka Raya offers better ROI due to lower entry prices and higher profit margins.

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Demand Profile Comparison

Heritage Areas (Jonker, Bandar Hilir):

• Primary demand: Short-term tourists (1-5 days)
• Source: Singapore, KL, international tourists
• Seasonality: High peaks (CNY, school holidays), low troughs
• Booking pattern: Last-minute (1-7 days before)
• Guest profile: Couples, families exploring heritage sites

Melaka Raya:

• Primary demand: Mixed (tourists + expats + medical visitors + families)
• Source: KL, Singapore, local visitors, regional (Indonesia, Thailand)
• Seasonality: More consistent (year-round demand)
• Booking pattern: Mix of last-minute and advance bookings
• Guest profile: Families, business travelers, medical tourists, expats

Advantage: Melaka Raya has more stable, year-round demand.

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Who Should Invest in Melaka Raya?

Ideal Investor Profile #1: First-Time Investor

Budget: RM200,000-350,000 Goal: Positive cash flow from day one Risk tolerance: Low-medium Time horizon: 5-10 years Why Melaka Raya works:

• Affordable entry (doesn't require huge capital)
• Consistent occupancy (less volatile than tourist areas)
• Professional management available
• Lower monthly costs (reasonable maintenance fees)
• Exit strategy (sell to local buyers or upgrade)

Recommended: Majestic Court or BRC (affordable, proven performance)

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Ideal Investor Profile #2: Portfolio Builder

Budget: RM500,000-1,000,000+ (multiple properties) Goal: Build portfolio of 3-5 units Risk tolerance: Medium Time horizon: 10+ years Why Melaka Raya works:

• Can purchase 2-3 units vs. 1 in heritage area
• Diversification across different condos
• Economies of scale (management efficiency)
• Consistent cash flow across portfolio
• Capital appreciation potential (area developing)

Recommended: Mix of Hatten Square (steady) + One Residence (premium)

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Ideal Investor Profile #3: High ROI Seeker

Budget: RM400,000-600,000 Goal: Maximize ROI (not total income) Risk tolerance: Medium-high Time horizon: 5-7 years, then sell Why Melaka Raya works:

• Higher ROI than heritage areas (6.8-10.5% vs. 5.5-7.5%)
• Faster appreciation (emerging area)
• Lower exposure (smaller investment)
• Flexibility (sell individually or as portfolio)

Recommended: The Amber Residence or One Residence (premium units)

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Operating Costs: What to Expect

Monthly Fixed Costs (Melaka Raya Condos)

Cost	Hatten Square	Amber Residence	Majestic Court	BRC	One Residence
Maintenance Fee	RM350-450	RM400-500	RM250-300	RM300-380	RM450-550
Assessment	RM80-120	RM100-140	RM60-90	RM70-100	RM120-160
Sinking Fund	RM60-90	RM70-100	RM40-60	RM50-70	RM80-110
Insurance	RM150-200	RM180-220	RM120-150	RM140-170	RM200-250
Internet	RM120-150	RM120-150	RM100-130	RM100-130	RM150-180
**TOTAL**	**RM760-1,010**	**RM870-1,110**	**RM570-730**	**RM660-850**	**RM1,000-1,250**

Key takeaway: Maintenance fees vary significantly by condo. Factor this into your ROI calculations.

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Variable Costs (Per Stay)

Cost	Per Stay	Annual (at 40 stays)
Professional Cleaning	RM80-120	RM3,200-4,800
Supplies (TP, soap, etc.)	RM30-50	RM1,200-2,000
Utilities	RM25-45	RM1,000-1,800
Wear & Tear Reserve	RM50	RM2,000
**TOTAL**	**RM185-265**	**RM7,400-10,600**

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Maintenance & Repairs (Annual Budget)

Category	Budget
Routine Maintenance	RM800-1,200
Repairs	RM1,000-2,000
Replacements	RM500-1,000
Emergency Fund	RM300-500
**TOTAL**	**RM2,600-4,700**

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Financing Your Melaka Raya Investment

Mortgage Options

For Malaysian Citizens:

Loan Type	Interest Rate	Max Loan	Tenure
Conventional	4.2-4.8%	80-90%	Up to 35 years
Islamic	4.3-4.9%	80-90%	Up to 35 years

Example: RM300,000 property, 90% loan, 4.5% interest, 30 years

• Monthly installment: ~RM1,365
• Annual mortgage: RM16,380

Can Airbnb cover mortgage?

• Amber 2-bedroom: RM29,898/year net profit
• After mortgage: RM13,518/year positive cash flow

Yes, cash flow positive from year one.

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For Foreigners

Restrictions:

• Minimum property value: RM500,000 (varies by state)
• Maximum loan: 50-60%
• Stricter approval process

Recommendation: Consider premium units (One Residence) that meet minimum value requirements.

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How to Maximize Your Melaka Raya Investment

Strategy #1: Choose the Right Unit

Best Features for Airbnb:

• Floor: Higher floors (better views, less noise)
• Position: Not facing main road (noise reduction)
• View: City view or pool view (guests pay more)
• Layout: Open concept (modern appeal)
• Parking: Covered parking (essential)

Avoid:

• Ground floor units (noise, privacy)
• Units facing highway (noise, dust)
• Units with poor natural light

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Strategy #2: Furnish for Guest Appeal

Must-Have Amenities:

• High-speed WiFi (100 Mbps+)
• Smart TV with Netflix
• Air conditioning (all bedrooms + living)
• Hot water heater
• Kitchen (basic cooking equipment)
• Washing machine
• Hair dryer
• Iron & ironing board

Furnishing Budget: RM20,000-35,000 for full setup

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Strategy #3: Professional Photography

Impact:

• Professional photos = 25-35% more bookings
• Better reviews (property matches expectations)
• Higher nightly rates (+15-25%)

Cost: RM800-1,500 (one-time) ROI: Pays for itself in 1-2 months.

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Strategy #4: Dynamic Pricing

What it is: Automatically adjust rates based on demand Example:

• Low demand (Tuesday, November): RM160/night
• High demand (Saturday, December): RM250/night
• Peak demand (CNY, school holidays): RM300+/night

Result: +20-30% annual revenue vs. static pricing

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Strategy #5: Multi-Platform Listing

Don't just list on Airbnb.

We list on:

• Airbnb (45% of bookings)
• Booking.com (25%)
• Agoda (15%)
• VRBO (8%)
• Expedia (7%)

Result: 60% more bookings than single-platform.

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Get Started with Your Melaka Raya Investment

Free Investment Consultation

We offer Melaka property investors:

• ROI analysis for specific condos/units
• Revenue projections based on real data
• Market comparison (heritage vs. Melaka Raya)
• Financing guidance (mortgage options)
• Unit selection (best floors, positions)
• Furnishing recommendations (budget optimization)
• Management quote (transparent pricing)

What we analyze:

1. Your investment budget
2. Your ROI expectations
3. Your risk tolerance
4. Your time horizon
5. Best condos for your situation
6. Expected cash flow
7. Exit strategies

For Parkland Avenue by the Sea:

Lock in flat fee pricing: RM200-300/month

Official launch: August 2025

For Melaka Raya Condos:

WhatsApp us for custom pricing and ROI analysis.

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Take Action Today: Enter your phone number and we'll WhatsApp you with a free investment analysis for Melaka Raya.

Don't invest blindly. Get real data, expert analysis, and a clear ROI projection before you purchase. We manage 30+ properties in Melaka Raya and know exactly what performs and why.

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About iHousing

We're Melaka's leading Airbnb property management company:

• 8 years experience in Melaka market
• 100+ properties under management
• 30+ properties in Melaka Raya area
• 60%+ average occupancy
• 5-platform listing strategy
• In-house cleaning team
• responsive guest support
• Transparent pricing

We understand the Melaka Raya market intimately and can help you maximize your investment returns.

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Considering Melaka Raya investment? Let's talk. We'll help you choose the right condo, select the best unit, and manage it for maximum returns. WhatsApp us for a free consultation.