Differences Between SoFo, SoVo & SoHo

With so many types of preperties available in malaysia such as landed properties, condominiums, serviced apartments and so on, it can be confusing when it comes to choosing the right property to invest in. The rising of property new trend such as SoFo, SoVo and SoHo has gained popularity in the past 5 years. Although these properties are commonly known in the western countries, it is still relatively a new trend in Malaysia. Many people are still asking questions such as "What is SoFo, what is SoVo or what is a SoHo". This article will guide you through the difference between SoFo, SoVo and SoHo.

Before I explain the differences between SoFo, SoVo and SoHo, it is essential to know that these properties share similar built up areas, ranging from 37 square metre to 74 square metre. They are priced approximately RM480 per square feet to RM700 per square feet. However, prices for properties may vary, depending on the locations of the properties. 

1 | SoFo 

First of all, a SoFo, also known as small office, flexible office is a small unit that gives great flexibility for the owners to decide how they want to utilize the space. As the name suggests, it can also be used for residential purpose. They can either use is for commercial purposes, residential purposes, or both. Due to its size, most people invest in a SoFo and use it for business purpose as an office. 

Each unit has a partition that can be broken down to provide the owners the flexibility to renovate or customize the unit as they wish. That being said, owners can choose to buy two SoFo units side by side to build an internal connection between the two units to enlarge the space.

2 | SoVo 

SoVo, also known as small office, virtual office is very similar to SoFo in terms of size and price. The only difference between a SoVo unit and a SoFo unit is that SoVo units are only allowed to be used for commercial purposes, unlike SoFo units, where they can be used for residential purpose as well.

As SoVo units can only be used for commercial purposes, most people invest it for business purposes. SoVo units are mainly used as small offices as they are fully equipped with infrastructural facilities and telecommunication that will allow business start ups to start immediately.

As SoVo units are considered as commercial properties, the Developer Interest Bearing Scheme (DIBS) is readily available to interested buyers. This scheme allows the buyer to only pay 10% of the price until the completion of project. However, the owners of SoVo units are required to pay the water, electricity, telephone as assessment bills based on commercial rates, where they are typically higher than the rates for residential properties.

3 | SoHo 

SoHo, also known as small office, home office is unit that has a strata title. SoHo units are also suitable and convenient for newly weds, young singles or professionals to incorporate their work space into their living area. SoHo units that are built on commercial land are allowed to function as both a workplace and also a home. The sizes of most SoHo units are the results of the confluence of the current lifestyle and economic. Thanks to the great interior design innovations of SoHo units, there is no need for large floor areas.

It is also important to know that only SoHo units come with residential title. In addition, SoHo units are also protected by the Housing Development Act (HDA). As for SoVo and SoFo units, they come with commercial title with no Housing Development Act (HDA). Moreover, there is also no standard Sales and Purchase Agreement (SPA) for SoFo, SoVo and SoHo. This could be a concern for prospective buyers as there is no protection from the Housing Development Act (HDA). 

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In conclusion, SoFo, SoVo and SoHo are different from one another, though they share some similarities such as the size and price. The functionality of each development is different depending on the owner’s intention of buying the property. SoFo, SoVo and SoHo are made more affordable for first time investors and also for young working adults who have just started working. That being said, although prices for SoFo, SoVo or SoHo are relatively cheaper than buying a condominium or a landed property, do plan your finances ahead before you purchase a unit. This is to prevent you from getting into a huge debt. After all, buying a property requires a huge sum and commitment.