Hi all,

Let say got two properties with almost same size and price in the same area. One with commercial title and another with residential title.

Will there be a big difference in the rate of quit rent and assessment fee for both types of title? Will it be 10%, 20% extra for commercial?

Yes

Yes, commercial rate will definitely be higher, which is why if buying "commercial under HDA" properties must be prepared to fork out extra $$$ for costs of long term ownership.

This post has been edited by DragonReine: Oct 8 2021, 12:29 PM

extra by roughly how much?

Commercial title assessment rate can easily be almost double the amount of residential title assessment rate.

Assessment rate (cukai taksiran) is based on estimated annual rental value.

This varies from area to area, from district to district (even within same state), from property to property (size, type, location, condition of property), so cannot give an accurate amount of difference, but for the sake of easy calculation here, let's fix annual rental value as same.

For DBKL, the assessment rate for service apartment (commercial under HDA) is based on 7% of the estimated annual rental value, while a residential title property is 4%.

Assuming both are same annual rental value, service apartment is paying 75% more than residential title.

For Shah Alam, residential strata is 3.5%, service apartment is 5%, so approximately 43% higher for service apartment assuming both same estimated annual rental value.

Bear in mind also that city councils tends to charge higher annual value for service apartment, so that also drives assessment tax higher.

This post has been edited by DragonReine: Oct 8 2021, 05:17 PM

thanks a lot for such details explanation