Harmonization of Floor Area Definitions in Singapore: What You Need to Know

Have you ever been confused by different floor area measurements when dealing with property in Singapore? You're not alone. Previously, various government agencies used different methods to calculate floor areas, leading to discrepancies and confusion. However, recent changes have been made to address these issues, creating a more unified system.

What Was the Problem?

Before the harmonization, agencies like the Urban Redevelopment Authority (URA), Singapore Land Authority (SLA), Building and Construction Authority (BCA), and Singapore Civil Defence Force (SCDF) all had their own ways of measuring floor areas. For instance, URA's Gross Floor Area (GFA) included the full thickness of external walls, while SLA's strata area was measured to the middle of the wall. These differences created problems for building professionals and property owners alike. Qualified Persons (QPs) had to spend a lot of time calculating different floor areas to meet the requirements of different agencies. Also, property owners could be confused when they wanted to do additions or alterations to their units.

What Changed?

To solve these problems, the four agencies have worked together to create harmonized floor area definitions. These new guidelines were implemented starting June 1, 2023. The key changes include:

• Measurement to the middle of the wall: All agencies now measure floor areas to the middle of the wall.

• Inclusion of all strata areas in GFA: All strata areas are now included in the GFA.

• Exclusion of voids and air con ledges from strata area: All voids and air con ledges are excluded from the strata area.

• Aligned SGFA definition: BCA and SCDF have adopted an aligned definition for Statistical Gross Floor Area (SGFA) computation.

What Does This Mean for You?

These changes mean there will be more consistency when it comes to floor area measurements. This will help to make the approval process more transparent. The new guidelines aim to improve productivity for those working in the built environment profession. The revised definitions apply to all development applications submitted to URA on or after June 1, 2023, as well as Government Land Sale (GLS) and industrial Government Land Sale (iGLS) sites launched for sale on or after September 1, 2022.

Example of the Impact of New Guidelines

Imagine two identical condominium units, with the same floor plan and a price of $2.83 million. The only difference is how their floor area is calculated. One unit uses the old guidelines, and the other uses the new, harmonized guidelines.

Calculations using old guidelines:

• The developer could market the unit as 1,356 square feet (sqft), which included the air conditioning ledge in the computation.

• To calculate the psf: $2,830,000 (price) / 1,356 sqft (area) = $2,087 psf

Calculations using new guidelines:

• The developer can no longer include the air conditioning ledge in the computation.

• After subtracting the air conditioning ledge, the unit can only be marketed as 1,270 sqft.

• To calculate the psf: $2,830,000 (price) / 1,270 sqft (area) = $2,228 psf

Implications on Home Owners and Buyers

Impact on Buyers:

• Perception of Size: Under the old guidelines, developers could include areas like air conditioning ledges in the floor area calculation. This could result in a unit being marketed as larger than its actual liveable space. With the new guidelines, such areas are excluded from the computation. Therefore, a unit that might have been advertised as 1,356 sqft previously, might now be marketed as 1,270 sqft.

• Price per Square Foot (psf): The change in how floor area is calculated directly affects the psf price. In the example, a unit priced at $2.83 million might have appeared to have a psf of $2,087 under the old guidelines. However, with the new calculation method, the psf increases to $2,228, even though the actual liveable space is the same. This can make properties seem more expensive under the new guidelines.

• Transparency: The new guidelines provide a more transparent and consistent method of calculating floor area. This makes it easier for buyers to compare properties and understand the actual living space they are purchasing. With the unified standard, the approval process is also more transparent.

• Comparison: Buyers need to be aware of the change in measurement when comparing properties built before and after the implementation of the new guidelines. Two units with the same size might seem to have a different psf. Therefore, buyers should focus on the actual liveable space rather than solely relying on the advertised floor area.

Impact on Homeowners:

• Additions and Alterations: The harmonization of floor area definitions impacts homeowners planning additions and alterations to their strata units. Under the old system, homeowners might have encountered an increase in GFA even if there was no increase in strata floor area. With the new guidelines, the measurements are standardized across different agencies. This should reduce confusion and simplify the process for homeowners wanting to modify their properties, as all strata areas are now included in the GFA and voids are excluded.

• Consistency: The harmonized definitions ensure that the floor area calculations are consistent for various purposes, which means that homeowners will encounter less confusion when it comes to regulations that are related to floor area

Conclusion

In conclusion, while the new harmonization guidelines might lead to an initial perception of higher psf prices, they ultimately provide a more standardized and transparent approach to floor area measurements. This helps buyers make better comparisons and helps homeowners understand regulations and requirements for renovations or additions.

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