Kota Kinabalu: The V by Jesselton, a mixed-use development by Jesselton International Sdn Bhd comprising commercial suites, retail shoppes and corporate offices, illustrates how integrated developments can support short-term rental activity when properly managed.
This contrasts with more isolated residential developments lacking on-site commercial activity, such as standalone guarded and gated communities, where Airbnb-style operations may face regulatory, management or resident resistance.
Advertisement
These views were shared at Beyond Airbnb – Smarter Property Investment in Kota Kinabalu, held at the Jesselton International Sales Gallery on Saturday, January 17.
The session featured renowned property and investment experts from KL Peter Yong (Mr Money TV) and architect-turned-property analyst Sean Tan (Iherng).
Yong is the host of the Mr Money TV platform and a registered financial planner with more than a decade of experience in financial education and investment advisory, while Tan is a property analyst and investor with formal training in real estate and extensive exposure to residential and mixed-use developments nationwide. Much of the discussion drew on their familiarity with the West Malaysian property market.
Both speakers emphasised that the success of short-term rental investments depends less on individual unit appeal alone, and more on location fundamentals, including surrounding retail offerings, food and beverage outlets, accessibility and sustained daily activity.
“We judge the building by the commercial vibrancy. You look into the Airbnb residence, but downstairs, wow, so happening, must be good. But if downstairs goes down, no matter how fabulous your unit, no point,” said Tan.
Drawing from his experience reviewing developments nationwide, Tan noted that investors should assess a developer’s long-term commitment, particularly their willingness to curate and manage commercial components rather than treating them purely as short-term cash flow drivers.
He also observed that pricing remains a key consideration, adding that developments offering lower entry points relative to location, design and future rental potential tend to provide investors with greater holding power, particularly in higher-priced urban markets.
Yong, meanwhile, urged prospective investors to adopt a numbers-first approach, cautioning against decisions driven primarily by emotion or lifestyle appeal.
“Look at the ROI, the costs, the risks. Numbers don’t lie,” he said, adding that Airbnb-style properties are generally more suitable as portfolio additions, rather than first-time property purchases, unless intended for long-term leasing.
The discussion also touched on Sabah’s post-pandemic tourism recovery, which both speakers noted has been gaining momentum. Rising tourist arrivals, an increase in direct international flights, and renewed interest linked to MM2H programmes have contributed to growing demand for alternative accommodation options beyond traditional hotels.
In a separate interview, Yong said The V by Jesselton stood out due to its purpose-driven design.
“If you look at their units, they are en suite units instead of developing it like a standard apartment where bedrooms share a toilet. Here, each bedroom has its own toilet. This helps establish the fact that for tourists who want to come and rent this place, Airbnb operators, etc., it is very much more designed for that purpose, so you are going to get much more value out of it.”
In another interview, Sean Tan said one of the key strengths of The V lies in the developer’s experience and familiarity with the local market. From an investment standpoint, he added that the project’s pricing appears commercially reasonable when assessed against prevailing rental levels.
“Based on numbers, it’s pretty sincere. Meaning, if you compare price per square foot against the current rental rates, from a long-term point of view it makes sense,” he said.
Both speakers agreed that while Airbnb investments can be attractive, they should be approached as an active business model, requiring proper management, service standards and operational discipline, rather than being viewed as a purely passive income strategy.
