At long last, a new standardized definition of Saleable Area in uncompleted residential properties is now in place.
The new measure which is now a requirement under the Consent Scheme of the Lands Department, came into force on October 10 this year.
Gone will be the days when the term Saleable Area could vary in interpretation as well as in representation, much to the confusion and chagrin of prospective buyers.
The Consumer Council which is at the forefront of advocating for transparency and disclosure in the sales of uncompleted flats, welcomes the introduction of the standardized definition of Saleable Area.
This means uncompleted first-hand residential properties which are approved for pre-sale by the Lands Department from that date onwards, must adopt the standardized Saleable Area definition in their sales brochures.
Under the new definition, the Saleable Area covers only the area of the unit inclusive of the balcony and the utility platform (if any).
Significantly, other areas such as the bay windows which previously were often presented as part of the Saleable Area, are excluded henceforth.
Instead, all these areas - bay window, air-conditioning plant room, roof, flat roof, garden, etc. - should be separately listed out item by item and not to be counted as part of the Saleable Area.
Because of the lack of a standardized definition and practice in the descriptions of Saleable Area, many a consumer complaint and dissatisfaction has arisen in the past.
This has led to cases of buyers moving into their new flats only to realize that the size of the flat was not quite what they had in mind.
The situation was further aggravated in the use of different terminology in Chinese to describe the area - such as 銷售面積，可售面積 or 實用面積.
The Real Estate Developers Association (REDA) has issued (a) a set of new guidelines and (b) a standardized price list template.
REDA has required its members to adopt the standardized definition and presentation of Saleable Area in the sales brochures and price lists of uncompleted first-hand residential properties approved for pre-sale from October 10, 2008.
For projects approved under the Consent Scheme before October 10, a footnote will be added on the price list to alert prospective buyers that the area information presented is still in the old format.
The Consumer Council urges developers to adopt the new measure in the sale of uncompleted properties including those approved prior to the effective date.
Prospective buyers of uncompleted flats are advised to refer to the article on the new standardized definition of Saleable Area in this November issue of CHOICE.
In addition to a detailed account of the issue, the article presents also the measurement method of Saleable Area.
According to the Code of Measuring Practice issued by the Hong Kong Institute of Surveyors, the Saleable Area of a unit is the area contained within the enclosing 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.
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