1) What is SOHO?
SOHO stands for Small Office, Home Office. In Singapore, it is a term used by private developers for units with home finishes and office amenities. But, officially, a specific strata unit within a development can only be approved for a single use by the Urban Redevelopment Authority (URA). For a SOHO, it has been approved for either Office or Residential use but not for both. URA does not recognise “SOHO” as a planning term. However, do note that for land zoning, URA does allow for mixed uses. For example, a white site is approved for several uses, but may have restrictions on the Gross Floor Area (GFA) for each type of use. An example would be the Central @ Clarke Quay which land site is zoned for commercial and/or hotel and/or residential uses; hence you can find residential, retail and offices units there.2) Do SOHO and the Home Office Scheme mean the same thing?
No.3) What is the Home Office Scheme then?
The Home Office Scheme was first piloted by URA in November 2001. Under this scheme, only homes in 5 selected areas, which already had a strong mix of residential and commercial activities, were allowed to conduct small-scale business operations, as long as they satisfy certain rules. Later in June 2003, this pilot scheme was officially implemented by the Ministry of National Development (MND) in which private residential properties and HDB (Housing Development Board) flats were allowed to operate certain types of small-scale businesses. To read more about the regulations of this scheme for HDB flats, go here. For private homes, go here instead.4) Must I apply for a permit if I want to use a SOHO as my office?
Yes. You have to apply for one under the Home Office Scheme if the SOHO approved use is residential.5) Will the bank grant a home loan or commercial loan for my SOHO purchase?
Most banks will grant the loan type based on the intended use of the SOHO. Some banks, however, consider a SOHO as a commercial property regardless of its approved use. Others may consider a SOHO as a residential property if it has been approved for residential use. Given the ambiguities, you may require the advice of a mortgage consultant. Email us at loans@PropertyBuyer.com.sg, or drop us a note here for a FREE consultation.About Property Buyer http://www.PropertyBuyer.com.sg/mortgage We are a research-focused Singapore mortgage consultancy which helps you compare Singapore home loans either for new loans or refinancing. We use loan reports from Singapore's best loan analysis system (exclusive to us) at http://www.icompareloan.com/consultant/ to serve our customers. Our services are completely FREE to you as the banks pay us a referral fee upon loan disbursement.
