SoHo, SoFo and SoVo - What's the Difference?
Malaysia is truly blessed with a plethora of properties, from high-rise apartments to low-rise mansions. Among the abundant properties available, there are a handful of terms in real estate which may seem quirky at first glance but you might have heard of. So, what comes to mind when you come across names like SoHo, SoFo and SoVo? For starters, they refer to an exceptional mix or blend of residential and office spaces created for multi-purpose use, specifically for living and work. SoHo basically stands for small office, home office; SoFo for small office, flexible office; and SoVo for small office, versatile office.
They are conceived from the Strata Titles Act to cover stratified landed properties that fall under the amended Housing Development Act (HDA) in 2007. Such properties are generally built within high-density areas such as commercial business districts (CBDs) and also transit-oriented developments (TODs). For their significantly smaller size, they often command cheaper asking price. SoHo, SoFo and SoVo typically come with commercial titles. As such, landlords or tenants would have to pay higher utility rates compared to other properties. Securing a home loan of up to 90% is also out of the question, with loan duration lasting 25-30 years. And commercial properties are not bound by the 70% margin on the buyer’s third property purchase.
SOHO - Small Office, Home Office
They are the most common amongst the three types of home and office properties. As its name suggest, SoHos can be used either as a home or an office. Buyers are able to enjoy the perks and privileges of the standard sales & purchase agreement (SPA) as accorded by the housing development act (HDA). As such, developers are liable for any damages incurred in the event of late completion or delivery. With the defect liability period spanning two years from the date of vacant possession, developers are legally-bound to rectify any flaws during the construction period. SoHos are often accompanied by a studio or single-bedroom setting or configuration, complete with fully furnished fittings and accessories. They offer premium lifestyle facilities similar to apartments and condominiums. Also, commercial utility rates for SoHo properties can sometimes be converted into residential rates by the home owner or the joint management body.
SOFO - Small Office, Flexible Office
Similarly with SoHo, a SoFo unit can be used for both residential and office purposes. With its greater flexibility, homeowners have a free hand in the interior design of the property especially when it comes to renovation and refurbishment. Building partitions are common in SoFos to maximise living space. Whilst some SoFos offer lifestyle facilities, others provide public amenities that cater to commercial tenants. Unlike SoHo properties, SoFo and SoVo properties do not fall under the HDA, and thus lack the protection of a standard SPA.
SOVO - Small Office, Versatile Office
Built mainly for commercial purposes, SoVos have always been branded or marketed with better infrastructure and also telecoms facilities such as seamless internet connectivity with broadband capabilities, as well as targeted towards budding start-ups in an increasingly digitalized world, landscape or environment. Some management bodies even permit SoVo properties to be converted for use as homes or residences as a result of an oversupply of office spaces. Whatever the circumstance, SoVo is still primarily made as a workplace platform for those who wish to live and work from home.
CONCLUSION
Since there is no standard definition for these three property types, buyers do sometimes find themselves in a bind between residential usage and commercial facilities provided by SoHo, SoFo and SoVo developments. The differential factor is undoubtedly having HDA coverage for SoHo properties. Amid a pandemic, there are benefits of having flexible-use properties to lure or attract potential tenants. The proliferation of co-working spaces as well as work-from-home office residences today has become a trend of sorts to those who traditionally work from conventional offices. More and more homes are being rented out as offices and vice versa. The growing prospects and flexibility of SoHo, SoFo and SoVo continue to be their key selling points with aspiring homeowners and seasoned investors alike.