What's the difference between Condo and Serviced Apartment?
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Malaysia offers plenty of options when it comes to renting apartments. Condominiums and serviced apartments are highly sought after by first-time home buyers and urban renters, who are attracted to the prospect of living in a fully-furnished building with excellent facilities. Although these two residential properties may seem similar at first glance, there are significant differences between them that are worth noting.
What is a Condominium?
Condominiums are multi-story residential buildings constructed on residential titled land, providing more amenities than basic apartments. The units within a condominium are owned by separate individuals who benefit from round-the-clock security and at least one designated parking space. It is a popular choice among families seeking privacy and security, while still enjoying a sense of community through non-exclusive common facilities. These facilities may include exercise yards, terrace gardens, swimming pools, recreation rooms, gyms, playgrounds, and parking spaces.
What is a Service Apartment?
If convenience is a top priority for you, such as easy access to malls, restaurants, and public transportation, then a serviced apartment could be an excellent fit. Keep in mind, however, that not all serviced apartments are available for purchase by the public. Some are owned by a single corporation that manages the property either on behalf of property investors or the developer.
What’s the difference between Condominium and Serviced Apartment?
1. Land title
Condos have a "residential-titled" land status such as Bukit Jalil Condominium and The Era, Duta North. Meanwhile serviced apartments have a "commercial-titled" land status such as Tower B, The Scott Garden SOHO. This distinction results in significant differences in laws, tax rates, and functions between the two. However, there are some exceptions to serviced apartments being commercial-titled. If the residential component of a mixed development is entirely separate from the commercial component, the developer can apply for the serviced apartment to have a residential title.
2. Utility Charge
Residing in a serviced apartment would lead to higher utility bills compared to living in a condominium due to the commercial rates for utilities that serviced apartments follow. While condos fall under Tariff A - Domestic Tariff as private residential spaces, serviced apartments are considered as low-voltage commercial buildings and thus fall under Tariff B - Low Voltage Commercial Tariff.
3. Living Environment
Serviced apartments are often attached to shopping malls or retail shops, allowing unrestricted access to outsiders. However, residents usually have separate entry points for privacy. Condo residents, on the other hand, have more control over their property's use since they are specifically for residential purposes. Additionally, serviced unit residents have easy access to amenities like restaurants, convenience stores, and movie theatres, while condos may not offer such conveniences.
4. Population density
Condominiums and Serviced Apartments differ in their approach to development: while condos are built based on population density, serviced apartments are built based on plot ratio, allowing developers to maximise the allowable number of units in a certain space. For instance, a plot ratio of 1:4 would permit a developer to construct up to 240 units on a 1-acre land, each sized at 725 square feet. This means that serviced apartments tend to have a higher population density than condos, resulting in less space and comfort for residents.
Although there are differences between condominiums and serviced apartments, rental rates in Malaysia are not significantly different between the two. Instead, the rates depend on factors such as the number of amenities offered, location, and exclusivity. Serviced apartments with additional services will have higher rental rates, while those without such amenities will have lower rates. Additionally, a condominium's rental price will vary based on its location, with those situated in the heart of Kuala Lumpur commanding higher rates compared to those in the outskirts.
If you're looking for a rental property that is both affordable and convenient, the BlueDuck Zero Deposit Program might be the perfect option for you. This innovative program allows you to rent either a serviced apartment or a condo without having to pay a security deposit upfront. For more, check out our website!
Cheers,
BlueDuck!