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Hong Kong Law Reform Commission |
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Chapter 8 - Methods of measurement
of floor area to be used by developers
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Introduction
| 8.1 | Accurate
and adequate descriptions of floor areas are of great importance to prospective
purchasers of completed flats.[56]
Where completed flats in new developments are offered for sale, prospective
purchasers may not be allowed to inspect all the units which they are interested
in buying. They may only visit show or mock-up flats put up by developers.
Purchasers thus have to look to the sales brochures for information as to the
floor area. |
| 8.2 | There
are currently two principal types of measurements of floor area, viz, gross
floor area and saleable area. Although purchasers need an accurate and adequate
indication of the floor area, there is presently no legal requirement that the
measurement adopted be disclosed in the sales literature. However, the
Commission has made recommendations on the disclosure of measurements of floor
area in their previous reports on the sales of uncompleted
flats. |
Saleable
area（出售面積）
| 8.3 | There
is an accepted method of measuring saleable area. The Commission recommended
that a standardised definition of saleable area be adopted for all local
uncompleted residential
properties.[57] The Commission also
recommended that it should be mandatory for the standardised definition to be
used and disclosed in the sales
literature.[58] |
| 8.4 | We
take the view these recommendations should also be extended to local completed
residential properties in the first-hand market. Even in the case of completed
properties, prospective purchasers may still have to rely on the sales
literature for information on the saleable area. We have come across a recent
example of the developer including the "exempted areas" into the calculation of
the saleable areas of the individual units. In calculating the plot ratio of a
development, the exempted areas are not considered part of the overall gross
floor area of the whole development. Likewise, therefore, we consider that the
exempted areas should not be included in the calculation of saleable areas of
the individual
units.[59] |
Recommendation
11
We recommend that in respect of local
completed residential properties offered for sale in the first-hand market,
"saleable area" should mean:
(1) in
relation to any cockloft, the floor area of that cockloft measured from the
interior of its enclosing walls;
(2) in
relation to any bay window which does not extend to the floor level of a unit,
the area of that bay window measured from the exterior its enclosing walls or
glass windows and from the point where the bay window meets the wall dropping to
the floor level of a unit, but excluding the thickness of that
wall;
(3) in relation to any carparking
space, the area of that carparking space measured from the interior of its
demarcating lines or enclosing walls, as the case may
be;
| (4) | in
relation to any yard, terrace, garden, flat roof or roof, the area of that yard,
terrace, garden, flat roof or roof measured from the interior of their boundary
lines. Where the boundary consists of a wall, it shall be measured from the
interior of that wall. |
We
also recommend that where the property includes any incorporated item in the
definition (such as a cockloft, bay window, carparking space, yards, terrace,
garden, flat roof or roof), the saleable area of each of them should be
specified and described separately in the sales
literature.
Recommendation
12
We recommend that in respect of local
completed residential properties offered for sale in the first-hand market,
"saleable area" in relation to a unit enclosed by walls, should mean the floor
area of that unit (which shall include the floor area of any balconies and
verandahs), measured from the exterior of its enclosing walls except where those
enclosing walls separate two adjoining units in which case the measurement shall
be taken from the middle of those walls, and shall include the internal
partitions and columns within such unit; but shall exclude the common parts
outside its enclosing walls. Provided that if any of the enclosing walls abut
onto a common area, then the whole thickness of the enclosing walls which so
abut shall be
included.
Recommendation
13
We also recommend
that:
(1) the above mentioned
definitions of saleable area should be recognised in legislation as the standard
method to describe saleable area in all sales literature in respect of local
completed residential
properties;
(2) the inclusion of
saleable areas in sales literature should be made mandatory by
legislation;
(3) any areas exempted from
the calculation of gross floor area should be excluded from the calculation of
saleable areas of the individual units.
Gross floor
area（建築面積）
| 8.5 | Although
developers invariably state in the sales brochure the gross floor area of the
units, there is no standardised definition of gross floor area. Gross floor
area essentially means the saleable area plus a share of the common areas and
facilities. At present, different developers adopt different proportions of the
common areas, thus leading to much confusion. The confusion over gross floor
area goes further in that even Government departments use different definitions
of gross floor area. |
| 8.6 | The
Commission recommended that the definition of gross floor area of local
uncompleted properties should be standardised and should follow the definition
of that term in regulation 23(3) of the Building (Planning) Regulations
(Cap 123), subject to certain
modifications.[60] |
8.7 Whilst
we consider that the definition of gross floor area should be standardised, we
take the view that the general use of saleable area should be the ultimate
objective.
Quoting of lowest
price
| 8.8 | It
is usual practice for developers to quote in advertisements and sales brochures
the lowest price of the units being offered for sale. It is not uncommon to
find such statements as "from X dollars per square foot" or "at Y dollars per
square metre". Gross floor area is invariably the method of floor measurement
being used in arriving at these prices because that area will give a lower price
than saleable area, giving the impression that the properties represent good
value. |
| 8.9 | We
are of the view that the long-term objective should be that the lowest price
stated is calculated on the basis of saleable area only. The fact that the
definition of saleable area is one agreed by the Consumer Council and the
relevant professional bodies should serve to remove much uncertainty. While we
consider that where the lowest price is quoted this should always be calculated
on the basis of saleable area, that should not preclude a developer in
addition quoting the lowest price calculated on the basis of gross floor
area should he wish to do so. In our view, the more information which is
provided to purchasers, the better. |
[56]
The Government published the Sales Descriptions of Uncompleted Residential
Properties Bill as a White Bill in the Government Gazette on 7 April 2000. The
Bill intends to implement most of the recommendations in the First Report
relating to the sales descriptions of local uncompleted residential
properties. It contains various provisions on the measurement of floor
areas.
[57]
Under the recommended definition, saleable area essentially means the area
contained within the enclosed walls of the unit measured up to the exterior face
of an external wall or the centre line of a separating wall between adjoining
units, as the case may be. Saleable area thus includes the thickness of
external walls, internal columns and partitions. Ancillary areas such as bay
window, carparking space, yard, terrace, garden which are for the exclusive use
of the owner are to be listed separately (see the First Report, at paragraph
1.25.)
[58]
The First Report, at paragraph
1.25.[59]
The exempted areas refer to those areas being exempted under regulation
23(3)(b) of the Building (Planning) Regulations (Cap 123) from the calculation
of the overall gross floor area of the development. Under regulation 23(3)(b),
exempted areas are any floor space "constructed or intended to be used solely
for parking motor vehicles, loading or unloading of motor vehicles or occupied
solely by machinery or equipment for any lift, air-conditioning or heating
system or any similar service."
[60]
The First Report, at paragraphs 1.18 to 1.20.