SOHO stands for Small Office Home Office. SOVO stands for Small Office Versatile Office. There’s also SOFO which stands for Small Office Flexible Office. All are supposed to be very useful for small business owners who may be working alone or with a small team and does not need the usual shoplots. Most of the time, these small office buildings also have security arrangements which meant that it’s also safer too.
If you ask me, I think if I am working only by myself, I will prefer to get a Hot Desk in aco-working space instead. The reason is mostly due to cost as well because getting a SOHO unit will mean some downpayment is necessary. So, what’s happening to the SOHO / SOVO scene in the property market today? Let’s listen to Zerin Properties managing director and chief executive office Previndran Singhe’s opinions.
Article in edgeprop.my here Zerin Properties disagreed with CBRE|WTW managing director Foo Gee Jen in an article last week that should prices not correct substantially, it will take the next five years to clear unsold stocks of SOHOs and SOVOs. Zerin Properties managing director and chief executive officer Previndran Singhe said, “We would like to make it clear that this is misleading and untrue, given the fact that the supply is less than 20% of the total overhang nationwide of said properties.”
He explained further, “KL has been the main driving force of the recovery of the property market and based on simple extrapolation of sales of 2,500 units a year, if no new launches this would be absorbed in a year.” Previndran called on the government to be bolder to address the current overhang issue in the country. “This would include taxes reverting back to reasonable RGPT (real property gains tax) rate, faster Malaysian My Second homes processing, early announcement or HSR (High-Speed Rail) recommencement among others.” Article in edgeprop.my here
I have no idea on whether it’s 1 year or 5 years but please note that if we are really interested with these SOHO or SOVO units, then it’s super important to look at the price of such a unit as well as the potential returns. If the possible rental is super small versus the mortgage, it spells ‘danger.’ If it’s for investment, then at least understand what are the prevailing rental in the same area. It’s not good enough to just look at the discount because the price may still be too high for comfort.
If it’s for own use, then just need to make sure it meets most expectations. Just remember the unit will not be used for a very long time because when the business expands, more people will need to be hired and a single unit of SOHO may no longer be enough. Small it may be, the price may still be hundreds of thousands of ringgit. Happy understanding and deciding.
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