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Hong Kong Law Reform Commission |
5.1 Accurate and adequate descriptions of floor areas are of great
importance to prospective purchasers of completed flats. 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.
5.2 There are currently two principal types of measurements of
floor area: gross floor area and saleable area. Although purchasers need an
accurate and adequate indication of the floor area, there is at present no legal
requirement that the measurement adopted be disclosed in the sales literature.
However, the Commission’s First and Second Reports have made
recommendations on the disclosure of measurements of floor area on the sales of
uncompleted flats.
5.3 There is an accepted method of measuring saleable area. The
First Report recommended that a standardised definition of saleable area be
adopted for all local uncompleted residential
properties.[62] The Commission also
recommended that it should be mandatory for the standardised definition to be
used and disclosed in the sales
literature.[63] We consider that
these recommendations should also be extended to local completed residential
properties in the first-hand market.
5.4 The Sub-committee came across
an example of a developer including the "exempted areas" in the calculation of
the saleable area 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. The consultation paper therefore
recommended that the exempted areas should not be included in the calculation of
saleable areas of the individual
units.[64]
5.5 In its
submission on the consultation paper, one respondent noted that some exempted
areas, such as internal air-conditioning plant rooms, are situated within the
enclosing walls of a unit and are for the exclusive use of its occupants. The
respondent took the view that these exempted areas should be included in the
calculation of the saleable area of the unit. We agree that if any exempted
areas are situated within the enclosing walls of a unit and are for the
exclusive use of its occupants, these areas should be taken into account in the
calculation of the saleable area of the unit. As these areas are for the
exclusive use of the unit, they fall within the commonly held concept of
saleable area.[65] We have adjusted
the original recommendation accordingly.
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Recommendation 11 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 (including 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 a 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. |
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Recommendation 12 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 of 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 car-park space, the area of that car-park space measured from the interior of its demarcating lines or enclosing walls, as the case may be; and We also recommend that where the property includes any item incorporated in the definition (such as a cockloft, bay window, car-park space, yard, terrace, garden or flat roof), the saleable area of each of them should be specified and described separately in the sales literature. |
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Recommendation 13 We also recommend that: (1) the definition of saleable area should be recognised as the standard method to describe saleable area in all sales literature in respect of local completed residential properties; However, if any areas exempted from the calculation of gross floor area are situated within the enclosing walls of a unit and for the exclusive use of its occupiers, such areas may be taken into account when calculating the saleable area of the unit. |
5.6 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.
5.7 The First Report
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.[66]
5.8 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. In their comments on the consultation paper, two respondents
endorsed our view that it would be desirable to have a standardised definition
of gross floor area. One respondent shared our view that general use of
saleable area should be the ultimate objective in the description of floor area.
5.9 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.
5.10 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 from 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.
[62] 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 windows, car-park spaces,
yards, terraces, and gardens which are for the exclusive use of the owner are to
be listed separately (see the First Report, at paragraph
1.25.)
[63] The First Report, at
paragraph 1.25.
[64] 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 for refuse storage chambers, refuse storage and material recovery chambers, material recovery chambers, refuse storage and material recovery rooms, refuse chutes, refuse hopper rooms and other types of facilities provided to facilitate the separation of refuse to the satisfaction of the Building Authority, or for access faciliities for telecommunications and broadcasting services, or occupied solely by machinery or equipment for any lift, air-conditioning or heating system or any similar service."
[65] To promote green and
innovative buildings in Hong Kong, the Buildings Department, in collaboration
with the Lands Department and the Planning Department, issued in February 2001 a
practice note on green features for new building developments. It set outs the
incentives to be provided by the Government to encourage the design and
construction of green buildings. Certain green features may be excluded from
the Gross Floor Area and/or Site Coverage calculations. These features include
balconies; wider common corridors and lift lobbies; communal sky gardens;
communal podium gardens; acoustic fins; sunshades and reflectors; wing walls,
wind catchers and funnels. See Green and Innovative Buildings, Buildings
Department, Lands Department and Planning Department Joint Practice Note No.1
(February 2001). See also Press Release of the HKSAR Government dated
27.2.2001, “Government offers incentives for green
buildings”.
[66] The
First Report, at paragraphs 1.18 to 1.20.