Service Suite vs Condo TPC =E2=80=93 Law Q7
20/06/2018= 28/07= /2018 Thomas Sim PEA2066
Q.
What is =E2=80=9Cservice suite=E2=80= =9D if compared to =E2=80=9Ccondominium=E2=80=9D?
A.
Some answers are like:
Service Suite is of higher standard! I= t is used as =E2=80=9CHotel=E2=80=9D! It is commercial use. It has commerci= al activity, etc.
In fact, service suite is just a strat= a product under =E2=80=9Ccommercial land title=E2=80=9D. Under National Lan= d Code, land is divided into 3 categories of use.
Agricultural
Building
Industrial
Under building, it is subdivided into = Residential and Commercial. When a plot of commercial land is used to build= hotel, or for dwelling purposes, it is deemed commercial use. Of course, l= and for residential use is not allowed for commercial purpose. Commercial l= and can be Hotel as in an accommodation. So, this segment of market is natu= rally a evolution of needs in the market.
When a commercial land is built, it ma= y have mixed commercial activities. It can be used as Hotel, Offices, Shopp= ing Mall and Cinema. So, the part of hotel emerges to become service suite.= People staying there becomes long term tenant. As it does not comply to re= sidential measurement (plot ratio), the commercial suite only need to compl= y with some council requirements. These are like public parking, publ= ic toilet, public hygiene etc, hence the parking becomes a limited commodit= y, as it may be owned by management, not by parcel owner themselves.=
Being in the category of commercial de= velopment, service apartment is NOT regulated under Housing Development (Co= ntrol & Licensing) Act, 1966. Hence, it does NOT need to have the equiv= alent stringent safeguards like the residential condos.
However, due to the safeguards the Schedule H of Housing Development (Co= ntrol & Licensing) Act, 1966 (HDA 1966), some developers use SOHO to ca= tegorize Commercial Strata Living into "Residential within Commercial Title= " making it look like "Residential HOME", to use Schedule H as a selling po= int.
In such context, the property although is commercial in title, however f= ollows the HDA Sch H in dealings. This might encourage more buyers as they = find the law being safeguards to their rights. Therefore, SOHO (Small Offic= e Home Office) and SOVO (Small Office Versatile Office) are regulated also = by HDA 1966.
https://estateagentexam.online/2018/0= 5/condominium-vs-service-suite-any-difference.html/
https://www.propertyguru.com.my/prope= rty-news/2016/7/131267/chang-not-all-apartments-are-similar
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