Occupants of serviced apartments are expected to have access to public facilities such as those found in other housing areas with the establishment of two housing guidelines (GPP) – the Mixed-Use Development GPP and the Serviced Apartment GPP, reported Bernama.
According to Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, the present policy on the development of serviced apartments are different at local and state authority levels.
Moreover, it is not also subject to the terms and conditions for usual housing development, which is to provide public facilities as well as having controls on sales prices.
In a statement, Abdul Rahman revealed that buyers are usually “not aware of the high cost of living in a serviced apartment, which has higher utility tariff rates and higher tax rates, because it was built on a commercial land.”
The matter, he said, was decided in the National Physical Planning Council (NPPC) meeting that was chaired by Prime Minister Datuk Seri Najib Tun Razak.
NPPC also noted of the proposal to place serviced apartment under the category of commercial properties, and not permanent residences, shared Abdul Rahman.
He said the implementation of serviced apartment projects must be reviewed as it had become a lifestyle trend since it started in 1998.
As of Q4 2014, Malaysia saw a total of 63,689 existing units of serviced apartments; 83,968 units under construction while 71,569 had their development plans approved.
Johor had the highest number of serviced apartments, with 78,571 units. It is followed by Kuala Lumpur with 61,489 units, Selangor (56,527), Negeri Sembilan (8,426) and Pahang (4,250).