Last month you see Selangor government freeze approval of SoVo (Small office Versatile office), Soho (Small office Home office) and Service apartments for all applications of new projects submitted after Jan 1, 2016. The suspension is for 6 months, after which a new planning guideline will be issued. Will such a case happen in KK or Sabah? For the moment I don’t think so, we don’t have as many developments for  Soho and SoVo, but the sloooow… take up rate of these developments should be a wake up call to the local developers.

Peak Soho is an exception because of a few things:

1. Its located in a prime area with supreme seaviews.
2. Its built by a proven developer with a good track record there. Many have made money in the Peak collection series and this has created many loyal followers.
3. The selling price from RM286,800 to RM689,800 is certainly many times affordable than the current rage of 500k and above.

Recently there has been a lot of hoo hah over new developments of SoVos in KK, I was ask if it was a good investment. Before you put down your deposit, let’s consider a few things first. We know people still need houses or a place to stay, because 47% of Malaysian population is between 21 to 45 years old, the biggest demand from house ownership.

When you need a place to stay, where would you prefer to stay? A SoVo with no carpark and pantry? Or a condo with full kitchen and hot shower after a long day at work? The keyword is Office Here.

You will also be paying commercial utility rates, which is higher than the usual residential rates because its commercial title property. Yeah you pay more for water and electricity.

What about the usual commercial properties surrounding the development? Is it going to be noises all night long? How will you get your rest? I for one would prefer a nice quiet stay for my blissful sleep.

How about the amenities? Management fees per square feet? Do they really stake up against similar but a condo development?

If this SoVo is in a mixed development, what is the operation hours of the mix development? If the mall start operation at 11am and close at 10pm is the access going into the unit be the same? Or you need to walk quite far or the access is not safe? If the development is like many developments then its sharing the same access or ramp as the mall then if it is popular
then there is bound to be traffic, going into the home will be not so easy. Or out for the matter of fact.

Another point is the resale value of SoVos; so far there is not much evidence to support SoVos for big capital appreciation upon the issuance of OCs or CPC. Rental wise is more for office than for residential use so its a different ball game altogether.

Lastly, there is still plenty of new and secondary houses on the market, some giving very good packages and rebates, if you are buying for investment, in my opinion is a better bet.

propertykid. Always Learning. Always Investing.