Discover the contrasts between serviced apartments and condominiums in Malaysia, from their land status to pricing and living environments.
Malaysia offers a wide range of housing options, which can be rather interesting. The decision-making process is more exciting while looking at places for rent. In Malaysia, there are numerous options accessible in this regard. It can be challenging to comprehend the distinctions between a serviced apartment and a regular condominium.
It’s important to explore the subtler aspects of differentiation among the market’s wide range of possibilities. Why do some renters favor serviced apartments over condos? Is the preference merely based on practicality, or is there something special about the warm, well-kept atmosphere? Let’s investigate this issue in more detail.It’s important to explore the subtler aspects of differentiation among the market’s wide range of possibilities. Why do some renters favor serviced apartments over condos? Is the preference merely based on practicality, or is there something special about the warm, well-kept atmosphere? Let’s investigate this issue in more detail.
Understanding the Concept of a Service Apartment
In its simplest form, a service apartment is a building with fully furnished apartments, frequent housekeeping, and nearby facilities like supermarkets.
For prolonged visits, these lodgings are frequently more affordable than hotels. The variety of facilities and the location in particular might have an impact on this equation, as is frequently the case with real estate enquiries.
For instance, if the lodging is in proximity to Kuala Lumpur City Centre (KLCC) or other prominent tourist destinations, the rates may be higher compared to securing a stay on the outskirts of Selangor. Notably, a service apartment holds commercial status, and as a result, the legal and taxation framework surrounding this property type is markedly distinct.
Distinguishing Characteristics Between Condominiums and Service Apartments:
While there are certain similarities in terms of amenities between condominiums and serviced apartments, there exist notable differentiators between these two categories of properties.
One prominent difference lies in the fact that a service apartment is typically designated for commercial utilization, unlike residential occupancy that characterizes condominiums. Below, we outline key distinctions:
1. Land Status
A condominium is officially designated as a private residential space, with individual units owned by different individuals or entities.
In contrast, serviced apartments are erected on land zoned for commercial use and function more akin to hotels. Often, a single proprietor holds ownership of all units within the building.
2. Price Range
Cost plays a pivotal role, and in the realm of housing, it holds a position of prominence. This is where the divergence in pricing between serviced apartments and condominiums becomes evident.
Due to the commercial land designation, owners of serviced apartments are obligated to bear higher expenses encompassing elements such as quit rent, electricity, water charges, and monthly maintenance fees.
To provide an example, the minimum water tariff for domestic usage in Kuala Lumpur or Putrajaya stands at RM6. In the commercial context, this figure escalates sixfold to RM36. Similarly, the minimum electricity tariff for residential consumption is RM3, while the corresponding rate for low-voltage commercial usage is RM7.20.
Compared to landed and stratified residential buildings, serviced apartments are subject to slightly higher assessment rates from local authorities, such as the Shah Alam City Council.
On stratified properties like condominiums, they only charge a 3.5% assessment rate, but they charge 5% on serviced flats. Let’s investigate a broad overview of comparing prices!
It’s easy to understand why renters of serviced apartments typically have to pay higher rental prices.
Condominiums are better suited for families, offering communal amenities like a shared swimming pool, gym, and even party rooms that aren’t reserved for exclusive use.
Opting for a condominium rental might also mean embracing a livelier and more dynamic living setting. However, the vibrant atmosphere can occasionally be accompanied by increased noise levels. In this case, we’ll humorously point our fingers at the ever-entertaining party room.
On the other hand, serviced apartments contain fewer units and are designed for both short- and long-term stays. They frequently stand just above or near to shopping centers.
Rental Rates For Serviced Apartments
The rental prices of serviced apartments vary based on the range of services and amenities they offer. Depending on your duration of stay, certain locations might extend discounts for longer-term occupancy, making repeat patronage quite advantageous.
For a fully-furnished apartment unit, the monthly cost could hover around RM2,400. While these apartments provide fundamental necessities, they may not reach the pinnacle of a five-star experience. Nevertheless, they offer a comfortable living arrangement.
For those on a tighter budget, more economical rentals can start as low as RM1,200 per month. However, it’s important to note that these options might lack comprehensive facilities; for instance, you might discover the absence of amenities like bed sheets.
At the opposite end of the spectrum lie the luxury serviced apartments. Distinguished by their opulent furnishings and high-end features, these accommodations typically command a starting monthly rate of at least RM10,000.