If you’ve ever searched for a property that offers the best of both worlds, a comfortable home and a functional workspace, you’ve likely encountered the term SOHO, short for Small Office/Home Office. But what is a SOHO unit, and is it genuinely worth buying in 2026?
As hybrid work continues to reshape the way we live, work, and earn, SOHO units are once again in the spotlight. They’ve become especially appealing to freelancers, start-ups, and small business owners who value flexibility, accessibility, and the ability to integrate their professional and personal lives under one roof.
These modern, efficiently designed spaces strike a delicate balance between residential comfort and business practicality, offering an urban lifestyle that blends productivity with convenience, all within a single, compact, and cost-effective property.
| Table of Contents 1. What Is a SOHO Unit? 2. Why SOHO Units Are Trending Again in 2026 3. Key Features of a SOHO Property 4. How SOHO Differs from SOFO and SOVO 5. Advantages of Buying a SOHO Unit 6. Drawbacks and Considerations 7. HDA Protection and Legal Rights 8. Loan-to-Value Ratio (LTV) Explained 9. Costs and Utility Rates for SOHO Units 10. Who Should Buy a SOHO? 11. Tips for Buying a SOHO Unit in 2026 12. Popular SOHO Developments in Malaysia 13. Is a SOHO Unit Right for You |
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What Is a SOHO Unit?
A SOHO (Small Office/Home Office) unit is a compact property designed for dual use, as both a private residence and a professional workspace.
Sizes typically range from 400 to 800 sq ft, though newer projects in 2025 offer layouts up to 1,000 sq ft to accommodate families or business owners who need more space.
These units often feature open-plan layouts, modern finishes, and condo-like facilities such as swimming pools, gyms, parking, and 24-hour security. The key idea is to allow residents to "live, work, and thrive" under one roof without the overhead of renting a separate office.
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Why SOHO Units Are Trending Again in 2026?
The rise of remote work and hybrid business models has reignited interest in SOHO units. Post-pandemic, many Malaysians are opting for homes that support both comfortable living and working.
According to The Edge Malaysia, demand for integrated live-work spaces has increased, driven by SMEs, online entrepreneurs, and digital freelancers.
Developers are responding by launching projects that blend residential design with office-grade infrastructure, high-speed fibre internet, soundproofing, and shared meeting facilities.
What are the Key Features of a SOHO Property?
SOHO properties are distinct because they combine residential and commercial features:
- Compact, efficient layouts (usually studios or 1-bedroom designs)
- Mixed-use titles (commercial property with residential functionality)
- Full condominium-style facilities: swimming pools, gyms, security, and parking
- Prime locations near business hubs or transport links (e.g., MRT/LRT lines)
- Smart home features, including some new launches in 2025, come equipped with IoT controls, energy-saving systems, and much more.
These features make SOHO units especially attractive for professionals in Kuala Lumpur, Selangor, and Penang, where lifestyle convenience and business networking opportunities are key.
How SOHO Differs from SOFO and SOVO?
Confusion often arises between SOHO (Small Office/Home Office), SOFO (Small Office/Flexible Office), and SOVO (Small Office/Virtual Office).
Here’s a quick breakdown:
SOHO
Small Office/Home Office
Yes
Residential + Work
Up to 90%
Commercial
SOFO
Small Office/Flexible Office
No
Business Use Only
70–85%
Commercial
SOVO
Small Office/Virtual Office
No
Virtual Business
70–85%
Commercial
Unlike SOFOs and SOVOs, SOHOs are protected under the Housing Development (Control and Licensing) Act 1966 (HDA), meaning buyers have the same rights and protections as those purchasing residential homes.
This table shows why SOHOs are often preferred by buyers seeking dual-purpose use without forfeiting HDA protection.
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Advantages of Buying a SOHO Unit
Before deciding whether a SOHO unit suits your lifestyle or investment goals, it’s helpful to understand what makes these compact, versatile spaces so appealing in today’s property market.
Here are some of the key advantages that have made SOHOs increasingly popular among modern buyers:
1. Convenience and Location
SOHOs are typically located in central business districts or mixed-use developments, near transportation networks and shopping amenities.
For instance, projects like J.Satine SOHO in Setapak and EkoCheras SOHO, located near MRT, are designed for urban professionals who value accessibility.
2. Flexibility in Use
SOHO units can serve as:
- A home for singles or couples
- A workspace for entrepreneurs or freelancers
- A hybrid base for small start-ups with limited staff
Owners can customise layouts, transforming the living area into a home office or creative studio without the need for separate commercial rent.
3. Protected by the HDA
Because SOHOs come with HDA protection, buyers benefit from:
- A standard Sale and Purchase Agreement (SPA)
- Defect liability period (DLP) coverage
- Regulated progress billing and developer accountability
This protection is especially valuable compared with SOFO and SOVO properties, which lack such legal safeguards.
4. Higher Loan-to-Value (LTV) Ratios
If the SOHO is your first or second property, most banks in Malaysia may grant up to 90% financing, similar to residential mortgages.
By contrast, non-HDA commercial units typically cap at 70-85%, requiring higher upfront capital.
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5. Cost-Effective Living
SOHOs are often priced lower than full-sized condominiums, making them ideal entry-level investments. They also offer:
- Reduced commute expenses
- Lower maintenance fees compared with larger developments
- Tax benefits for business use (subject to LHDN guidelines)
Overall, these advantages make SOHOs an attractive option for those seeking affordability, flexibility, and urban convenience, all within a single, smartly designed space.
Drawbacks and Considerations
Before exploring whether a SOHO unit suits your lifestyle or investment goals, it’s equally vital to weigh the potential downsides of this property type.
Here are a few key considerations to keep in mind:
1. Commercial Title and Utility Rates
SOHO properties hold commercial titles, which means higher assessment rates, quit rent, and utility tariffs.
However, you can apply to Tenaga Nasional Berhad (TNB) or Indah Water Konsortium (IWK) to convert utilities to residential rates, provided you can prove the unit is used primarily for living.
2. Space Limitations
While layouts are efficiently designed, SOHOs remain compact. Families with children may find them restrictive compared with larger apartments or landed homes.
3. Resale and Rental Market
Though SOHOs attract urban renters, the resale market can fluctuate due to their niche appeal.
When understood clearly, these factors can help you make a more balanced, well-informed decision about whether a SOHO truly fits your long-term plans.
HDA Protection and Legal Rights
It’s essential to understand how the Housing Development Act (HDA) plays a crucial role in protecting SOHO buyers and ensuring fair practices across the property market.
The Housing Development Act (HDA) ensures:
- Developers deliver projects as promised.
- Buyers receive compensation for late delivery.
- Maintenance charges and sinking funds are regulated.
If disputes arise, buyers can refer to the Tribunal for Homebuyer Claims (TTPR) under the Ministry of Housing and Local Government (KPKT).
Loan-to-Value Ratio (LTV) Explained
As per Bank Negara Malaysia (BNM) ‘s guidelines, LTV limits are:
- Up to 90% off for first- and second-time residential-type purchases.
- 70% for third properties onwards.
SOHO loans, because they are HDA-protected, usually fall within residential financing brackets, making them accessible to younger buyers and small investors.
Costs and Utility Rates for SOHO Units
Expect higher annual assessments and utility charges than those of typical residential properties; rates vary by council and utility provider.
- Assessment rate: RM0.08-0.12 per sq ft annually (varies by council)
- Quit rent: Approx. RM0.30-0.50 per sqm
- Utilities: Commercial tariffs unless converted
While these costs may seem higher initially, they often balance out through the added convenience, prime locations, and potential business flexibility that SOHO ownership provides.
Who Should Buy a SOHO?
Before deciding whether a SOHO suits your lifestyle or investment goals, it helps to understand who typically benefits most from this hybrid property type.
These compact yet versatile spaces cater to specific needs and living patterns. Here’s who they’re best suited for:
SOHOs are ideal for:
- Freelancers or digital entrepreneurs needing workspace flexibility
- Young professionals seeking affordable urban living
- Investors are looking for dual-use properties in high-demand locations.
They’re less suited to large families or to those who prefer traditional residential neighbourhoods.
Tips Before Buying a SOHO Unit in 2026
These compact, dual-purpose spaces can be financially rewarding, but success depends significantly on due diligence and timing, especially in Malaysia’s evolving property landscape of 2026.
Keep the following tips in mind to make a well-informed choice:
- Check Developer Reputation: Look for established names, such as UEM Sunrise, Tropicana, or Exsim. A reputable developer not only ensures build quality and timely delivery but also enhances your property’s long-term value and resale appeal.
- Verify HDA Coverage: Always confirm that the unit is indeed HDA-protected. This protection provides buyers with legal safeguards and financial assurance under the Housing Development (Control and Licensing) Act, which is especially crucial for off-plan projects.
- Compare Loan Offers: Use the mortgage comparison tool to assess bank rates. Even a slight percentage difference in interest rates can translate into thousands of ringgit saved over your loan tenure, so explore multiple options before committing.
- Review Maintenance Costs: Factor in higher commercial charges when making a purchase. SOHO units often carry commercial utility rates and maintenance fees, which can significantly impact your monthly expenses and rental yields.
- Assess Location Demand: Focus on areas near MRT/LRT lines and commercial hubs. Proximity to key transport links and vibrant neighbourhoods drives stronger tenant demand and helps maintain stable property values over time.
- Plan for Resale Value: Choose developments with mixed-use appeal or strong rental potential. Units located in well-integrated developments with lifestyle amenities or business activity tend to attract a wider pool of buyers and tenants in the future.
By taking these factors into account early on, you can avoid costly oversights and position yourself for stronger capital appreciation or rental returns.
Popular SOHO Developments in Malaysia
Some notable SOHO projects gaining traction in 2026 include:
- J.Satine SOHO, Setapak
- EkoCheras SOHO, KL
- M Vertica SOHO by Mah Sing
- Sunway Geo SOHO, Subang Jaya
- i-SOHO @ i-City, Shah Alam
Right SOHO investment
Explore SOHO units across Malaysia to find the one that fits your lifestyle and goals.
Is a SOHO Unit Right for You?
A SOHO unit in Malaysia can be an innovative and forward-looking investment for those who value flexibility, affordability, and the convenience of city living. While these properties come with inevitable trade-offs, such as compact layouts and higher commercial utility rates, their advantages often outweigh the drawbacks.
From strong HDA protection and competitive loan-to-value (LTV) ratios to prime urban locations and dual-use versatility, SOHOs are increasingly suited to the needs of today’s dynamic professionals.
As Malaysia’s workforce continues to adopt hybrid arrangements and digital entrepreneurship, the appeal of SOHO living extends beyond practicality to how it mirrors a modern lifestyle, one that seamlessly blends comfort, creativity, and career under a single roof.
If you’re considering taking this step, explore the latest sales listings on PropertyGuru Malaysia to find a space that suits both your ambitions and lifestyle.
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