Short-Term Rentals as a Strategic Solution to Malaysia’s Property Overhang

admin841153
5 days ago
2 min read

A Slight Dip in Deals

The Malaysian property market entered the first half of 2025 with a mixed outlook. According to The Edge Malaysia, total property transactions declined by 1.3% year-on-year to 196,232 units, although transaction value inched higher by 1.9%, reaching approximately RM107.7 billion.

The residential sector continued to dominate activity, with 120,307 transactions valued at RM49.37 billion. However, new residential launches saw a sharp decline—falling almost 46%, with only 23,380 units introduced, of which just 24% were sold.

The Persistent Overhang Challenge

The national property overhang remains a pressing issue. Completed but unsold residential units surged by 16.3%, totaling 26,911 units worth RM16.44 billion.

Interestingly, serviced apartments told a different story. Overhang in this segment recorded an 8.6% drop in volume (to 17,883 units) and an 8.1% decline in value (to RM14.43 billion). While still substantial, this downward trend indicates improved absorption and presents opportunities for repositioning.

Malaysia faces a dual challenge. On one hand, unsold properties weigh heavily on developers and the broader real estate market. On the other, the tourism sector requires a constant stream of high-quality, alternative accommodations to attract and retain international visitors.

COBNB’s Role: From Overhang to Opportunity

As one of the country’s leading short-term rental operators, COBNB believes we are uniquely positioned to help alleviate this challenge while contributing positively to the tourism economy. By transforming unsold serviced apartments and commercial-titled units into short-term rental assets, we help developers and property owners unlock immediate cash flow. At the same time, we boost Malaysia’s tourism capacity with curated stays that meet global traveler expectations.

In other words, this is killing two birds with one stone:

Reducing the national property overhang by absorbing excess inventory.
Fueling tourism growth by expanding quality accommodation supply.

Respecting Regulatory Boundaries

We recognize the government’s sensitivities around short-term rentals in residential developments. COBNB’s focus is therefore deliberate: we do not operate in purely residential properties. Instead, we partner with developers and owners of commercial-titled serviced apartments, where the alignment with urban tourism and business travel is strongest.

This ensures that our solution respects policy concerns while still unlocking value for the market.

A Call to Developers and Property Owners

COBNB specializes in turning vacant, unsold properties into cash-generating machines through short-term rental platforms like Airbnb and Booking.com. For developers, this means a new path to monetize overhang inventory. For property buyers and new owners, it means a way to maximize yield without the complexities of self-management.

With our tech-enabled hospitality management system, we streamline everything—from marketing to guest management to operations—allowing stakeholders to benefit without the usual friction.

Building a Stronger Ecosystem Together

Malaysia’s property market doesn’t exist in isolation. Every vacant property is a lost opportunity—both economically and socially. By working together with developers, investors, and policymakers, we can transform a national challenge into a growth opportunity that strengthens our real estate market and tourism sector alike.

At COBNB, we are ready to partner with forward-looking developers and property owners who want to turn unsold units into profitable assets while helping Malaysia tackle its property overhang problem head-on.