The Growing Demand for Co-Living Spaces in Malaysia

Owning a home nowadays is almost impossible with the skyrocketing house prices. That is why most Malaysians prefer to rent instead. Co-living seems like an ideal option for those who seek a living space that is simplistic, flexible yet affordable. You may also leave at an instant whenever you wish with no caveats or conditions. In short, there are no strings attached with co-living. This lifestyle format appeals to young professionals with a tight budget amid rising living costs and escalating property prices. Apart from purpose-built co-living properties, a growing trend among homeowners is converting their homes into co-living spaces. This is done by exploiting (making use of) under-utilized space within their properties to generate extra income by renting out individual rooms. This allows homeowners to adapt to evolving residential landscape while maximizing a property's prospects. Komune Living, located at Bangsar South, Kuala Lumpur is an excellent example of a fine co-living space or enclave in Malaysia. 

One key benefit of co-living properties is tenants share all the costs associated with renting. By sharing communal spaces, utilities, and amenities, residents can significantly lower or reduce their overall expenditure. Compared with a standard rental unit, co-living space usually has a single bundled bill for all expenses rolled into one. You know what you are paying for because there is only one standardized bill. No utility/maintenance fees, abrupt price hikes or unreasonable rental rates increment for the duration of your stay. As co-living is supposed to be economical and appealing to young professionals and millennials alike, any price change or fluctuation is controlled by the management to ensure it remains feasible and favourable to all.

Investing in a co-living property can produce long-term capital growth. With urban areas experiencing population growth and a housing shortage, there exists strong demand for affordable housing. It is an excellent opportunity for investors to achieve high rental yields and capital appreciation. Owing to the multiple-tenancy arrangement, rental income derived from a co-living property is substantially higher compared to traditional rentals which then leads to a more lucrative return on investment. Demand hotspots such as urban townships, academic centres and employment hubs with a young population are prime locations for co-living developments. Occupancy rates remain robust and vacancy risks are minimized.

Majority of co-living spaces are always strategically situated within a city centre where the buzz or excitement lies. In Malaysia, they are abundant in metropolitan cities such as Kuala Lumpur, Penang and Johor Bahru. Living within a city certainly have its own benefits and advantages as most retail outlets, eateries/restaurants, commercial districts, and residential estates are located within closed proximity of one another. Everything is readily accessible or within easy reach whether it is public services, business amenities, healthcare facilities, and retail shopping. Having a centralized location is truly convenient and makes for the ultimate ideal living space for a co-living dweller.

Naturally, co-living spaces are conceived not merely for networking purposes. A living space must come with its own facilities, amenities, and main attraction. Such spaces also serve as entertainment venues for social events such as cool parties, corporate functions, birthday bash and get-togethers. Since these hotspots are inundated with an influx of people, the management often organize fiestas to welcome and introduce newbies or newcomers to the community. This allows residents to socialize and interact with each another, either for fun, leisure, or business. In the words of property giant Grant Cardone, “With interactions come transactions, with contacts come contracts.”

The role of the landlord (or landlady) is to manage a property, and to oversee or supervise the tenants living on the property. Apart from upkeeping/maintaining the premises and collecting rental fees, he or she imposes rules and regulations which serve as general guidelines for residents. Most landlords tend to live off premises but they do sometimes stay together with their tenants. This can create conflicts that give rise to potential tensions or disagreements in the future. However, with co-living, there is no need or requirement for a landlord, so there is no fuss or hassles associated with one. Thus, the sole responsibility for housekeeping rests on the tenants themselves.