- Accountancy services
- Architectural services
- Consultancy services (Business, engineering, IT management or education)
- Design/Advertising services
- Insurance/Financial planning services
- Real estate agencies
- Technology based and knowledge intensive businesses
- Transportation services
- Trading offices
Under Lot number Mukim MK03-04324P.
The land query indicates that the plot of land is owned by JTC corporation; therefore it is uncertain if the reversionary land rights will be transferred back to JTC at the end of the 99- year lease. Or if this land that is being transferred to the property developer now will be returned to the state at the end of the 99-year lease. Reversionary rights and top ups of 99-year leasehold properties shall be a separate topic and a discussion for another time.
The zone for this One North Residence is “Residential with commercial at 1st storey”.
(Source: http://www.ura.gov.sg/uramaps/?config=config_preopen.xml&preopen=Sales%20Of%20Plans&saleIndex=1)
The property description captured from one of the websites are: -
“One-north Residences, developed by Vista Development, will have about 400 residential units and 20 street retail units. Its design concept leans towards glass and steel, with blocks connected by sky bridges, and fits in with the area’s master plan to create a ‘fenceless’ community.
‘Because there is a limited supply of residential projects there in one-north, demand for housing will be extremely great from expatriates who work there,’
‘People who buy see the potential of the hub. After all, the government has committed to spend $15 billion to develop this city within the city.’
This development will ‘allow like-minded experts and professionals to get together, mingle and socialise within a short walk of their home’ ..”
The units on the 1st floor (Ground level) are supposedly retail units. However the rest of the units are marketed as SOHO.
If you look at the zoning definition, URA master plan states that it’s zoned at 1st floor for Commercial while the rest are zoned as residential. Only the 1st floor is zoned for commercial use, in this case, as retail.
The rest of the units are presumably marketed as SOHO units while the zoning definition is Residential.
Therefore, if anyone is thinking of using the SOHO units for business use, they will still have to apply under the Home Office Scheme as there is no such category of SOHO within URA’s planning terminology.
The Scotts Tower SOHO
As can be seen from the map, the Scotts Tower is zoned under Master Plan 2008 as Residential. Therefore, these are technically speaking residential units.
Part of the marketing collateral says, “This development comprises 231 SOHO-concept apartments that offer breathtaking views over the height of 31 storeys, with recreational facilities abound at the sky terraces on Level 2 and Level 25.”
Nonetheless they are marketed as SOHO-concept apartments.
Bank loans for SOHO
Many banks' internal policies dictate that a property, whether it is considered residential or commercial is determined by its intended use. For example, if you buy a SOHO unit and then use it as an office, the bank will use commercial loan terms and interest rates.
Some banks, however, treat SOHO as commercials because they are considered as commercial regardless of the zoned use.
Other banks strictly look at SOHO or any property as residential as long as they are zoned as residential properties under URA’s master plan.
As such, getting a bank loan for SOHO properties will require some understanding of the issues. Do consult with www.iCompareLoan.com, our consultants will be most happy to guide you through and get the best home loan or commercial loan for you.
Summary
Therefore, it is very important to understand and plan your property purchase accordingly to make sure that your intended business falls within the approved office use. If in doubt, seek out a mortgage consultant who is independent of the property buying process such as www.iCompareLoan.com for a discussion.
About Property Buyer http://www.PropertyBuyer.com.sg/mortgage We are a research-focused Singapore mortgage consultant which helps you compare Singapore home loans either for new home loans or home loan refinancing. We use state- of- the-art home loan reports at http://www.icompareloan.com/ to serve our customers. SMS : (65) 9782 8606 Email: loans@PropertyBuyer.com.sg
Hi,
I’m always confused with the term SOHO, after reading from your website, I have more understanding. However, I’m still very confused.
Understand that you have discused about the bank loan, some banks treat SOHO as commercial loan, some banks treat SOHO as residential loan.
I’m thinking of buying a SOHO property at Soho @ The Central. Some people told me that this is treated as Residential because there is residential component. Some people told me that it is Commercial. I’m very confused. With the introduction of ABSD and SSD for residential, it is important to know what I am buying. Understand that Commercial properties also attract GST. If The Central is under commercial, then I have to pay GST and I don’t have to worry about ABSD and SSD. How do I know, can you advice?
Thank you.
Daniel Choy
Dear Daniel,
Thank you for your query.
I would like to clarify that buyer’s stamp duty is applicable to all property types – be it commercial, industrial or residential.
In contrast, ABSD is only applicable for residential, as you have correctly pointed out.
For land zoning, URA allows for mixed uses.
For the Central, at Eu Tong Sen Street, the land parcel is zoned for both commercial and residential uses; hence you can find both commercial and residential units there. The latter has also been marketed as SOHOs.
But according to URA’s regulations a specific unit in a development can only be approved for a single use.
The SOHOs at Central should have been approved for residential use by URA. If so the applicable taxes for a residential unit will apply. In other words, there will be no GST.
Do note that even for commercial units, no GST is charged if you are buying from a non-GST -registered company.
In short, to determine whether residential or commercial taxes apply, you have to look at URA’s (or HDB’s in the case of developments that fall under its purview) approved use for the unit.
I hope this clarifies.
Hi! Thanks for this useful article. One question, how about the PUB bills? Will they be charged at commercial rates or residential rates in SOHO apartments? Who can help (example: any consultant) with the legality of the property so I can ensure all is right before buying.?