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 Plot Ratio, Been reading up on this

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TSCavatzu
post Feb 7 2022, 08:34 PM, updated 4y ago

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Based on a few discussion threads, I read up a bit on plot ratios for new developments.

If you’re classed as a TOD development ie. within 400m of public transport you can build 1:8. This seems to have been the case for developments like Sunway Belfield.

I noted that the much maligned M Vertica has a plot ratio of 1:10 and I can’t really tell with the Skyline project but it seems extremely high dense for a 3 acre piece of land with over 2k units.

The only way I could get accurate information was based on information feed from Bursa. This only works for listed companies. Is there a way to get information for non listed developers?
TSCavatzu
post Feb 9 2022, 08:58 AM

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So if I understand correctly, before the highest plot ratio was 4. But under the new planning regulations introduced around 10 years ago, the plot ratio could go up to 10.

Well then ladies and gents, this is the root cause of the oversupply issue. Singapore still has a hard cap of plot ratio 4 I believe.

This post has been edited by Cavatzu: Feb 9 2022, 08:59 AM
TSCavatzu
post Feb 9 2022, 10:58 AM

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QUOTE(DragonReine @ Feb 9 2022, 10:50 AM)
Actually that's incorrect, not sure where you got the idea that 1:4 is a hard cap for residential

under URA master plan (as of 2021), 1:4 is on the "lowest density" side

Singapore can go all the way up to 2:8 or higher, they do however limit the number of stories (for safety reasons, as their land is not suitable for multiple skyscrapers)

user posted image

Note that this is for residential use land.

KL's cap of 1:10 and their subsequent implementation of capping the maximum number of storeys was done in mid 2019, so it's a recent development. Before that it was higher. Mega projects with higher plot ratios that were approved earlier had to get special approval.

Also note that these higher ratios are given to commercial land (read: "service apartments"), residential use land in Malaysia still has a much lower cap. Such land is rare and expensive these days, or has been already developed. Which is why you see most high rise projects now are classified as service apartment, not condominium.
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I didn’t mean 1.4. I meant 4 gpr as in the Singaporean table you linked. They changed the way they accord ratio.

Just for the sake of semantics, take away the 1:

Edit: ok I get it now, if it’s pure residential ie condo then it’s 4 plot ratio max. If it’s commercial ie. serviced apartment then it’s 10. Aren’t developers just converting the title anyway to commercial? It’s the dominant high rise type nowadays. I don’t believe the concept of commercial under HDA was a thing more than 10 years ago.

This post has been edited by Cavatzu: Feb 9 2022, 11:22 AM
TSCavatzu
post Feb 9 2022, 11:27 AM

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RIP residential titled condos. They’ll only exist for atas enclaves and ulu areas.

The default mass market accomodation now are dense commercial titled service apartments.
TSCavatzu
post Feb 9 2022, 11:47 AM

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The conclusion I will draw is that if developers continue churning out projects with this plot ratio of 10, it’ll definitely destroy property as an investment asset but more like a fmcg product.

Units become like a seasonal thing with the newer designs and facilities getting a lot of attention.

Funny anecdote is that when I was shopping for Sunway Belfield, the SA line was you won’t lose money instead of the “sure make money”. Times have changed.

This post has been edited by Cavatzu: Feb 9 2022, 11:51 AM

 

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