Monday, June 30, 2008

Huh? What Are Plot Ratios?

Source : The Sunday Times, June 29, 2008

Where do you see this?

In articles about property. The term is often used by those engaged in collective sales.

What does it mean?

The plot ratio of a site is the gross floor area of the building divided by the site area.

The higher the plot ratio, the more gross floor area can be allocated to the site.

Why is it important?

It tells you the site's development intensity, or how much can be built on the site. This is of particular interest to those who are keen to sell their ageing homes en bloc.

If a site's allocated plot ratio is higher than that utilised by the existing building or if it is revised upwards, then more gross floor area can be allocated to the site.

This would raise the site's value because a developer could build and sell more homes on the site.

If the Government feels there is a need, it can revise plot ratios in its Master Plans - which are reviewed every five years - to cope with a growing population, for instance.

So you want to use the term. Just say ...

'Many developers were disappointed with the 2008 Master Plan as there were no major changes to the plot ratios.'

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