What Does Serviced Residency Mean In Kuala Lumpur

Condo vs Serviced Apartment in Malaysia: What'south the divergence and which one is better?

These two residential properties are pop among first-fourth dimension home buyers and renters in urban areas – after all, who doesn't love living in a fully-furnished building with crawly facilities? They may appear to accept the same characteristics, only at that place is actually a pretty big deviation between condominiums and serviced apartments – in terms of living surroundings, tax rates and homeownership benefits.

© chee gin tan | Getty Images

On the surface, serviced apartments seem like the fancier sibling of the condominium – and that is partly true. All the same, not all serviced residences come up with the benefits that most homebuyers will expect and there are some considerations in which the condominium trump a serviced unit. In this commodity, we will take a closer await at both housing options to assistance you make up one's mind which volition be a improve fit for you:

What is a Condominium?

Condominiums are multi-storey residential buildings built on residential titled country – think of them as an upgrade from apartments, which only provide the bones amenities. The units in a condominium are endemic by different individuals, where owners have at least i allocated parking space and enjoy circular-the-clock security. It is usually a favourite selection amongst families for the sense of privacy and security it provides.

Despite having individual ownership, condominiums ooze a community vibe with its affluence of not-exclusive mutual facilities. Most condominiums have exercise yards, terrace gardens, swimming pools, recreation rooms, gyms, playgrounds, and parking spaces which are all overseen by the articulation management body (JMB) or Management Corporation (MC). Some condominiums even have a residence club and daycare centres!

What is a Serviced Flat?

Serviced apartments are commonly marketed every bit being more luxurious and exclusive every bit they were initially built to cater to travellers and businessmen who prefer something more comfortable than a hotel – these fully furnished units with hotel-like amenities are mostly located in busy commercial hubs. They are usually role of an integrated or mixed development which features connected access to a mall and/or office units.

Serviced apartments are pop choices amongst those who want to spend their vacation or business organization trip in a homey environment and yet enjoy all the luxuries of a hotel. It is not surprising to encounter that many Airbnb units in the Klang Valley, Penang and Johor are usually serviced units.

However, that does not mean that you cannot alive here for the long term. If you are a person who prioritises convenience similar having easy accessibility to a mall, eateries and public transport nodes, then a serviced apartment will suit your needs extremely well. Comport in mind that non all serviced apartments are available for sale to the public – some are owned by a single corporation who manages said property, either for property investors or on behalf of the developer.

What's the divergence between Condo and Serviced Flat?

State title

The land status of condos is "residential-titled" whereas the country status of serviced apartments is "commercial-titled." That is why the laws, tax rates and the functions betwixt the two are very different.

Utility Charges

If yous live in a serviced apartment, your electricity, sewage and water tariff or bills volition exist much higher than the residential rates charged for condos, as they follow commercial rates for utilities. As condominiums are private residential spaces, they fall nether Tariff A – Domestic Tariff whereas serviced apartments are low-voltage commercial buildings, hence they fall under Tariff B – Low Voltage Commercial Tariff.

Here we lay out the electricity tariff charge per unit from Tenaga Nasional Berhad (TNB) to assist you lot estimate the electricity toll departure betwixt condo and serviced apartment.

Tariff A – Domestic Tariff (Condominium)
	Unit	Utility Charges
Minimum monthly charge = RM3.00
For the first 200 kWh per month	sen/kWh	21.80
201 – 300 kWh per month	sen/kWh	33.40
301 – 600 kWh per month	sen/kWh	51.60
601 – 900 kWh per month	sen/kWh	54.threescore
901 kWh or above per calendar month	sen/kWh	57.10
Tariff B – Low Voltage Commercial Tariff (Serviced Apartment)
Minimum monthly charge = RM seven.xx
For the first 200 kWh per month	sen/kWh	43.50
201 kWh and higher up per month	sen/kWh	50.ix

Source: TNB ( Residential & Commercial )

Equally for water bills, according to Air Selangor, the minimum water tariff for commercial buildings such as serviced apartments is RM36 whereas the domestic rate for condominiums with residential land titles is only RM6 – that is one/6th the cost you pay for a serviced residential unit!

Is there a way to convert the commercial utility charges for Serviced Apartments to Residential utility rate?

This ultimately depends on your developer. Sometimes, developers of serviced apartments tin can negotiate with the utility companies for a lower toll. And then, before you purchase a serviced unit, it is better to first ask if such an organization is possible every bit it can salvage yous quite a chip of money on monthly utility bills.

Parcel Rent and Assessment Charges

Before we discuss the rates, here's what Parcel Rent and Assessment Tax hateful.

krisanapong detraphiphat | 123rf

Parcel rent is a type of land tax that is specifically meant for strata properties – it is governed by the Strata Management Act (SMA) 2013 and the Strata Titles Human action (STA) 1985. Each parcel (unit) owner would be billed packet hire for the entire square footage of the building. Strata owners were previously charged Quit rent, this was replaced with packet rent from June 2018 onwards.

Cess Charges or Cukai Taksiran on the other paw is collected past local authorities to finance the construction and maintenance of public infrastructures. Since Serviced Residences are built on commercial land, both their Parcel Hire and Assessment Charges are relatively higher than Condominiums.

The table showcases the Packet Rent charges divergence betwixt Condo and Service Apartment:

	Residential	Commercial
Freehold	RM 0.26 per metre square (Limited to a minimum of RM 25/packet)	RM 1.27 per metre foursquare (Limited to a minimum of RM 55/parcel)
Leasehold	RM 0.19 per metre foursquare (Express to a minimum of RM xx/bundle)	RM 1.21 per metre square (Limited to a minimum of RM 50/parcel)

Source: Federal Territories Land and Mines Function

Meanwhile, Cess Revenue enhancement is based on the almanac rental value of your property, which is estimated to be around 2-7%. This tax will likewise vary based on the size and type of property. Since serviced apartments often come with more facilities and conveniences then condominiums, the Assessment tax will be slightly higher

All the same, don't be discouraged past the high prices to be borne for serviced apartments – you commonly get to enjoy a better range of facilities and conveniences than their condominium counterparts. As well, some developers practise try to go lower Bundle Rent and Assessment Taxation for serviced apartments if they can secure a loophole in zoning laws to reclassify them. To know more, read Quit Rent, Packet Rent and Assessment Charges in Malaysia

What is the tax rate difference between Condo and Serviced Apartment?

Other than the Parcel Rent and Assessment Taxation, there are no other differences in tax rates betwixt serviced apartments and condominiums.

How does the maintenance fees differ between Condos and Serviced Apartments?

The maintenance fees for serviced units is college than condos as they are based on commercial rates instead of the residential rate.

Living Environment

• Most condos are private residential spaces with a security arrangement in place to monitor who comes in or out of the holding.
• As for serviced apartments, since most are attached to shopping malls or retail shops, outsiders could enter the compounds of these properties with unrestricted access. However, most serviced residences accept separate entry points for residential and common use so that residents are given some privacy.
• Residents of serviced units don't have whatever control over the business organisation that ready store in the development chemical compound or the people coming in and out of the property. Condo residents, however, accept more than say in the matter since these strata backdrop are specifically for residential use.
• When living at a serviced unit, you lot have the privilege of easy access to practiced restaurants, civilities like laundromats, convenience shops and movie theatres. Condos on the other manus don't necessarily take such conveniences at your disposal.
• If y'all prefer peace and quiet but nonetheless want to alive in a serviced apartment, you can also opt to expect for one which is non attached to whatsoever shopping malls. These may be hard to observe but not impossible.

MORE: A beginner'due south guide to strata properties in Malaysia

Population Density

© Muhammad Fikri Kassim / EyeEm | Getty Images

A condominium is congenital based on population per land size or density. The development of Serviced Apartments meanwhile, is based on plot ratio which is the full congenital-up area per land size. This allows developers to increase its maximum commanded units in a certain infinite compared to Condominiums.

For case, if you are immune to build a condominium with 180 people per acre, and you gauge that 3 people can live in a 725 square feet unit, then you can build a maximum of lx units.

On the other manus, if you are building a serviced apartment, you lot take to adhere to the plot ratio. Allow's say a developer is immune to build a serviced apartment on a plot ratio of one:iv. Hence, if you lot have 1 acre of land (43,560 sq ft), you will be able to build up to 174,240 sq ft of floor surface area – this means you can build approximately 240 units sized at 725 square feet each inside the same size of land.

As a consequence, the population density of condominiums is oftentimes less than serviced apartments, giving residents more space and condolement.

Are in that location dissimilar housing regulations for Condos and Serviced Apartments?

Both serviced apartments and condominiums are covered under the Housing Evolution Act (HDA) 1966. Although serviced apartments are built on commercial land, this belongings type qualifies as it is partially or wholly used for residential purpose. Both holding types have the standard Auction and Purchase Agreements (SPAs) and fall under the jurisdiction of the HDA.

The defoliation over homebuyer rights for owners of serviced apartments and condominiums mostly stems from the misunderstanding that SoFo, SOVOs, SOHOs are serviced apartments. Do note that serviced apartments are separate from all of the higher up.

Sometimes, developers may sell y'all these units equally serviced apartments. Hence, brand sure to check the fine print of the marketing brochures as SoFo, SOVO or Flexi Designed Suites are essentially made for office/business use and not primarily for residential purposes. Developers of SoFos and SoVos are not obliged to observe the rules and regulations under HDA and are complimentary to set all terms in the SPA as they see fit.

In that location is an exception for the Minor Function Home Office (SoHo) – it could work equally either a home or office. Since SoHos are 'residential-purposed', they are considered as housing accommodation and thus falls nether the Housing Development Human activity (HDA).

Related Stories

Is it worth purchasing a serviced flat in Malaysia?

It boils downwards to the lifestyle yous prefer, your hobbies and what matters to you – Is prime location a deal-breaker? Is admission to retail and commercial conveniences a acme priority?

If yous answered yes to the above questions, then serviced apartments would ameliorate suit y'all. For example, if your aspiration is to alive in a posh, fully furnished residential unit in the centre of Kuala Lumpur, you can check out Vortex Service Residence in KLCC   or M Vertica in Cheras – both are built in strategic locations with mall amenities and various transport nodes such as LRT and monorail stations nearby. The Sky Park Residences in Bukit Jalil is also perfect for working professionals and expats based in the city centre. Looking for more serviced apartment options? Browse these listings!

Should you prefer something more conducive or a living space for your family, yous tin opt for a condo unit such as Casa Greenish Condominium in Cheras or Armanee in Damansara Damai as these take big spacious layouts from one,500 sq ft onwards with all the conveniences your family could dream of right at your doorstep. More condominium options here.

Now, if you are looking for a new serviced apartment or fifty-fifty a condominium at a good deal in the current market, have a expect at these brand new launches nether the Great Holding Deals campaign . These featured properties include discounts such as the HOC, free legal fees and more, prices get-go from RM266,000 and in various locations such equally Puchong, KL City, Subang Jaya, Kota Kemuning and more than.

Read this article side by side: HOC 2020 extended until 2021! Hither's what homebuyers should know

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