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"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

EFFICIENCY

Since I do not have inside information on how much of the permissible GFA a development has utilized, I shall try and figure out an APPROXIMATION ONLY by using a deductive  method.

Now we know the permissable GFA is site area * plot ratio.
The 10% bonus GFA is added on to give a total of 110% GFA.

We can trawl the government data bases to choose recently sold out or nearly sold 99yr developments in the suburbs. One website gives the total number of units & the total number of units sold in a given development. Another website tells you the strata area of each unit sold by the developer (New Sale).  Now the developer will sell non-GFA area as GFA (ie planter boxes, PES etc) and I am assuming here than all this sold GFA must not exceed the  Master Plan GFA + 10%.

You know by now, how I love making tables:

I estimate the outstanding Strata Area of un-caveated units to be a conservative 93sqm (1000sqft). Given this conservative figure, it seems most of the estates are running at high  efficiency - remember 110% is the max.

I shall be keeping an eye on these estates to see how their actual caveats add up. This may not be the best way to figure out the efficiency, but without access to actual developer data, I cannot think of another way.

Actually, I can; if a developer is kind enough to publish the strata area of all the units in the estate either in it's sales brochure on on it's website (and very few are), then that would be a big help. I undertook to do this job last year  but after the tedious task of adding up all the units in The Interlace *, The Minton, Flamingo Valley & Lincoln Suites, I pretty much gave up the ghost. But I have added the figures to the table... and surprise, surprise - those estates have estimated efficiencies that look like 95% + 10% to me.

*I could only find the strata area for the 1040 units in The Interlace, the house strata area is therefore unknown

1 comment:

  1. Anonymous14 July, 2011

    90-95% of efficiency is the norm. It also includes 10% for balconies and planters. Any developer will sack the architect who dares to come up with a plan for 85% efficiency unless he is a world renowned professional. Developers are only interested in dollars and cents and will maximise every inch of the permitted GFA.

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