In Malaysia, flat is a term which tends to be more commonly used to describe affordable housing at the lower price ranges, particularly relating to public housing.
Apartment, on the other hand, is a word which had previously been used as an overall term for stratified properties in Malaysia, until the word condominium made its challenge for the title.
A condominium is now widely seen as a luxury property which offers much more facilities and appealing characteristics than your average apartment. The term 'condo' is almost like a helpful marketing tool to show off the fancy nature of the property.
The term apartment is now commonly used to refer to more middle-value properties, those that are still accessible to many income groups, but lacking the comprehensive facilities (and price tag) of a condominium.
Interestingly, from a Malaysian perspective, what is widely called an apartment in the US (and now Malaysia), is more commonly called a flat in British English.
While the word apartment is creeping in to some usage in the UK, the term 'flat' is still widely used to cover all such stratified property types.
'Apartment' is a term that’s widely used around the world to describe a self-contained unit in a strata-titled property.
Condominiums in Malaysia today tend to be defined by luxury. They make up a large share of the stunning new launch properties you find emerging in desirable or up-and-coming areas of Malaysia’s urban centres.
While prices for property can be influenced by a range of key factors, that almost-RM400,000 price tag is a good affordable baseline price for a luxury condominium.
Prices can go lower, but it’s rare to find price tags for a condo for sale at less than RM300,000-RM500,000, and starting prices are often much higher, particularly in desirable addresses located close to hotspot areas.
Luxury condo prices are a place where the sky knows no limit, with the most luxurious condominiums going for hundreds of millions of Ringgit!
Affordable apartments in less competitive areas in Malaysia can be listed for asking prices as low as RM35,000-RM100,000, significantly less than the benchmark price for even the cheapest condominium.
These properties often have limited facilities onsite, as well as lacking the extensive integrated public and social spaces of the more upmarket condo complexes.
Apartments cover a wide range of property values and types however, providing an important opportunity for homeowners from a diverse range of income groups.
It offers simple facilities such as a swimming pool, basketball court, and playground, alongside a relatively affordable opening price point at RM290,000-RM363,000.
As we've discussed earlier, the question of condo vs apartment is sometimes just a matter of word preference.
For that reason, you can often find luxurious apartments that overlap heavily with what you might expect of a condo, particularly in the lucrative area of serviced apartments.
Serviced apartments are basically fully-furnished units, with regular housekeeping and convenient nearby amenities like supermarkets.
They're generally more affordable than hotels, especially if you’re planning for a longer stay. Of course like most questions about property, there are some key points that can change that equation - amenities and location.
Serviced apartments are commercially-titled, thus, the laws and taxes governing this type of property are completely different.
Although condominiums and serviced apartments have amenities that are rather similar, there are actually some notable differences between both property types.
One clear difference between the two is that a service apartment is almost always flagged for commercial use, as opposed to residential stays at condominiums. Here are some key differences:
Land status
A condominium is registered as a private residential area, with its individual units owned by different people/ owners.
Serviced apartments are built on land registered for commercial use, and operate more like hotels. They tend to have a single owner who owns all units in the building.
As serviced apartments sit on commercial land, owners need to fork out higher amounts for costs such as quit rent, electricity and water charges, as well as monthly maintenance fees.
For example, the minimum water tariff in Malaysia for domestic use is RM6. For commercial use, this amount is six times higher at RM36!
The minimum electricity tariff in Malaysia for residential use is RM3, while the low-voltage commercial tariff is RM7.20.
Local authorities impose slightly higher assessment rates for serviced apartments, compared to landed and stratified residential properties. 3.5% assessment rate on stratified properties such as condominiums, but 5% on serviced apartments.
Financial Obligation | Serviced Apartment vs. Condominium |
Utility Deposits | Higher for Serviced Apartment |
Utility Charges | Higher for Serviced Apartment |
Quit Rent | Higher for Serviced Apartment |
Assessment Tax | Higher for Serviced Apartment |
Maintenance Fees | Tend to be Higher for Serviced Apartment |
https://www.propertyguru.com.my/property-guides/serviced-apartment-condo-malaysia-16623
Condominiums are more suited for families as they provide shared, non-exclusive amenities such as a swimming pool, gym, and party rooms.
If you're looking to rent a condominium unit, there’s also a chance you’re going to be living in a more bustling and active environment.
Although bustling does also sometimes mean more noise.
Serviced apartments, on the other hand, have fewer units and cater to short- and long-term stays. They're also usually right above, or next to, shopping malls.
Rental prices for serviced apartments vary according to the services and facilities they provide. Depending on the length of your stay, some places may offer you a discount for longer periods of time. There are real benefits in being a repeat customer!
A fully-furnished apartment unit can cost about RM2,400 per month. Such apartments will come with the basic necessities. While they aren't five-star experiences, they're pleasant enough.
You can definitely find cheaper rentals starting from RM1,200 per month, but these may not come with comprehensive facilities (for example, you may find they don’t provide bed sheets).
On the other end of the scale are the luxury serviced apartments. These are high-end, and more extravagantly furnished. Such serviced apartments usually cost at least RM10,000 a month.
A flat in Malaysia usually refers to the more economical end of the market, providing a unit that's accessible to those from the low-income and middle-income groups.
With that push for affordable homes being a real drive in the national property market, it therefore makes flats an essential part of the country’s property ecosystem.
Once again, it’s worth pointing out that there’s no single guaranteed rule on what makes a flat defined as such, and neither is there any hard and fast rule for an apartment or a condo.
The lowest priced flats on cover the RM25,000-RM35,000 range, overlapping significantly with the lowest prices for apartments.
Flats tend to have very limited facilities compared to the luxurious condominiums shining out like beacons across the cityscape of cities like.
The upper price limit for flats tends to be much lower than for other apartment types, with a limited number of more expensive flats reaching prices of around RM1 million.
Defining features
Very affordable homes, limited or no facilities
Affordable or accessible middle-class properties, range of facilities, broad price range.
Extensive facilities and integrated design, high starting price, affluent communities.
Low asking prices
RM25,000 - RM35,000
RM35,000 - RM100,000
RM300,000 - RM500,000
High asking prices
RM1mil
RM20mil+
RM100mil+
