Serviced Apartment vs Condominium vs Apartment: What's the Real Difference?

When looking for housing options in Malaysia, it’s easy to get confused by terms like condominium, serviced apartment, and apartment. Each has its unique features, and understanding the difference between apartment and condominium or serviced apartment vs condominium is crucial for buyers and renters alike. In this guide, we’ll explore these property types and answer questions like service apartment meaning, service residence meaning, and what is a serviced apartment.

We’ll cover the essentials of land status, price point, utility charges, financial obligations, environment, and rental rates for each, so you can make an informed choice when searching for a new home or investment property.

1. Condominium (Condo)

What Is a Condominium?

A condominium, often referred to as a condo, is a type of residential building composed of individually owned units. While each unit is privately owned, residents share common areas and facilities, such as pools, gyms, and gardens. Condos are typically situated on residential land and governed under the Strata Title system, making them distinct from apartments.

Costs

• Price Point: Condos are often mid- to high-end properties, generally priced between RM 500,000 and RM 2 million or more, particularly in major cities like Kuala Lumpur.
• Utility Charges: Condos enjoy residential utility rates (lower than commercial rates) for electricity, water, and sewage services. Electricity rates fall around RM 0.21 to RM 0.57 per kWh depending on usage.
• Financial Obligations:
  • Maintenance Fees: Condos have maintenance fees typically between RM 0.30 and RM 0.50 per square foot for facilities like pools, gyms, and security.
  • Legal and Stamp Duties: Condo owners pay standard residential stamp duties, ranging between 1% and 3% of the property price, with additional legal fees for documentation.

Living Environment

Condos provide a luxurious lifestyle with amenities like swimming pools, gyms, playgrounds, and security. They’re a top choice for professionals, families, and expatriates who prefer upscale living with a community feel.

Rental Rates

Rental prices for condos typically range from RM 2,500 to RM 10,000 per month, with high-end units in central Kuala Lumpur potentially fetching even more. The variety of facilities and prime locations make condos popular with both local and international tenants.

2. Serviced Apartment (or Service Residence)

Service Apartment Meaning

A serviced apartment, also known as a service residence, is a residential unit built on commercial land. It’s a cross between a hotel and a home, offering hotel-like services such as housekeeping, concierge, and sometimes room service. So, if you’re wondering, “What is service residence or what is a serviced apartment?” it’s a residential space that’s commercial by title and offers added convenience.

Costs

• Price Point: The price of serviced apartments typically ranges from RM 500,000 to RM 1.5 million. Some premium units, particularly those located centrally, can cost upwards of RM 2 million.
• Utility Charges: Serviced apartments fall under commercial utility rates, which are around 50% higher than residential rates. This means higher monthly expenses, with electricity rates around RM 0.43 to RM 0.57 per kWh.
• Financial Obligations:
  • Maintenance Fees: Due to hotel-like services, maintenance fees are typically higher, from RM 0.40 to RM 0.60 per square foot.
  • Legal and Stamp Duties: Like condos, stamp duties and legal fees apply, but property taxes and assessment rates are higher because they’re considered commercial properties.

Living Environment

Serviced apartments offer a comfortable blend of condo living and hotel-like services, such as housekeeping and concierge. These properties are popular with business travelers, expatriates, and tourists.

Rental Rates

Rental rates for serviced apartments range from RM 2,500 to RM 8,000 per month, making them a great option for tenants seeking convenience. 

3. Apartment

What Is an Apartment?

An apartment is typically a more basic, budget-friendly high-rise unit built on residential land and governed by Strata Title. Apartments tend to offer fewer amenities and are targeted toward middle-income families or young professionals.

Costs

• Price Point: Apartments are usually the most affordable option, with prices between RM 300,000 and RM 700,000. In suburban or older developments, apartments may cost as low as RM 200,000.
• Utility Charges: Like condos, apartments benefit from residential utility rates, making them more cost-effective for daily living.
• Financial Obligations:
  • Maintenance Fees: Apartments have lower maintenance fees, generally around RM 0.10 to RM 0.25 per square foot.
  • Legal and Stamp Duties: Apartments follow the same residential legal process, with stamp duty fees that align with lower property values.

Living Environment

Apartments are typically more straightforward, offering just the essentials like parking and basic security. This environment is more practical and cost-effective, appealing to renters who prioritize affordability over luxury.

Rental Rates

Rental rates for apartments are lower, generally between RM 1,000 and RM 2,500 per month, making them a suitable option for students, families, or young professionals.

Key Differences Between Condo, Serviced Apartment, and Apartment

Property Type	Land Status	Price Point	Utility Charges	Maintenance Fees	Environment	Rental Rates
Condominium (Condo)	Residential	RM 500,000 - RM 2M+	Residential (lower)	RM 0.30 - RM 0.50 / sq. ft.	Luxurious, high-end facilities	RM 2,500 - RM 10,000 / month
Serviced Apartment	Commercial	RM 500,000 - RM 1.5M+	Commercial (higher)	RM 0.40 - RM 0.60 / sq. ft.	Hotel-like services, prime areas	RM 2,500 - RM 8,000 / month
Apartment	Residential	RM 300,000 - RM 700,000	Residential (lower)	RM 0.10 - RM 0.25 / sq. ft.	Basic, fewer amenities	RM 1,000 - RM 2,500 / month

Understanding Costs Between Condo, Serviced Apartment, and Apartment

Just take a look at the table to see how consumption costs can vary between residential (condominium) and low-voltage commercial (serviced apartment):

TNB Tariff A - Domestic (Residential) Tariff

Usage Range	Current Rate
For the first 200 kWh (1 – 200 kWh) per month	21.80 sen/kWh
For the next 100 kWh (201 – 300 kWh) per month	33.40 sen/kWh
For the next 300 kWh (301 – 600 kWh) per month	51.60 sen/kWh
For the next 300 kWh (601 – 900 kWh) per month	54.60 sen/kWh
For usage beyond 901 kWh onwards per month	57.10 sen/kWh

TNB Tariff B - Low-Voltage Commercial Tariff 

Usage Range	Current Rate
For the first 200 kWh (1 – 200 kWh) per month	43.50 sen/kWh
For the next 100 kWh (201 – 300 kWh) per month	50.90 sen/kWh
For usage beyond 300 kWh onwards per month	44.10 sen/kWh

This tariff is applicable for commercial consumers, including serviced apartments and similar properties. For more details, visit the official TNB page: TNB Pricing and Tariffs.

When choosing between a condo, serviced apartment, or apartment in Malaysia, consider your budget, lifestyle, and whether you need added services or prefer affordability.

• Condos offer a luxurious living experience with extensive facilities and are ideal for families and professionals.
• Serviced apartments or service residences provide hotel-like amenities with higher utility charges but are ideal for short-term stays or expatriates.
• Apartments are the most affordable choice, appealing to those looking for practical living with essential amenities.

Hopefully, this clears up the condominium and apartment difference and helps answer questions like "service apartment vs condo" and "what is service residence." Whether searching for service apartments near me or deciding on a condo investment, understanding these distinctions will help you find the perfect place in Malaysia!

Serviced Apartments Worth Looking Into!

Here’s a list of some well-reviewed serviced apartments in Malaysia that have received positive feedback for their amenities and location.

1. Lot 163 Kuala Lumpur (Fraser Place)

Lot 163 Kuala Lumpur (Fraser Place) is a premium serviced apartment located near the iconic KLCC area in Kuala Lumpur. It provides a convenient and comfortable living experience for both business and leisure travelers. 

Features: Offers stylish, fully furnished apartments with kitchen facilities, a rooftop infinity pool, a fitness center, and a 24-hour front desk.

Click to know more!

2. Sky Suites @ KLCC

Sky Suites @ KLCC combines luxury living with the convenience of serviced apartments, making it a top choice for both short-term and long-term stays in Kuala Lumpur.

Features: Offers modern, fully furnished apartments with kitchen facilities, an infinity pool, a fitness center, and a 24-hour front desk.

Click to know more!

3. Vortex Suite KLCC

Vortex Suite KLCC is a contemporary serviced apartment located in the vibrant KLCC area of Kuala Lumpur. It offers stylish and fully furnished apartments, complete with kitchen facilities, catering to both short-term and long-term guests. 

Features: Offers fully furnished units, rooftop pool, and a fitness center.

Click to know more!

Other Article:

• Studio Apartment for Rent in KL and Selangor below RM 1300!
  
• Top Property Projects in Iskandar Puteri and Forest City
• 20 International Preschools and Kindergartens in Iskandar Puteri