Large Air-con Ledges and Balconies at Non-Landed Residential Properties

Mr Ang Wei Neng asked  the Minister for National Development whether URA is (i) reviewing the rule of allowing developers to build large air-con ledges and balconies for non-landed residential properties without them being counted as part of the gross floor area and yet are allowed to be charged to buyers for such space and (ii) making it mandatory to state the floor areas dedicated for balconies, air-con ledges and other outdoor space in the floor plans of such properties during their launches.

Madam, URA grants Gross Floor Area (GFA) exemptions to achieve certain planning objectives. For example, air-conditioner ledges below one metre in width are exempted from GFA in order to incentivise developers to house air-conditioner condensers neatly in residential developments. Balconies, on the other hand, are, in fact, not exempted from GFA, and developers must pay development charge for them. The rules on what constitutes GFA are publicly available on URA's website.

Developers factor in strata area when pricing units in their developments. Strata area measures the amount of floor space to be sold to the buyer, on the basis that the space is for the buyer's exclusive enjoyment. As both balconies and air-conditioner ledges solely serve individual units, they are considered to be strata area and, hence, chargeable to the buyer.

It is already mandatory for developers to provide prospective home buyers with a drawn-to-scale floor plan of the unit and, a detailed breakdown of the area of the unit by various types of spaces, such as bedrooms, bathrooms, air-conditioner ledges and balconies. The Member had suggested making this mandatory; it is already the case.

This information must be given to prospective home buyers before they pay the booking fee for an Option to Purchase (OTP) for the unit. The floor area of various types of spaces, including air-conditioner ledges and balconies, must also be accurately represented in the show-flats. URA will not hesitate to take action against developers who have misrepresented such information to home buyers. Home buyers are advised to review the information in order to make an informed decision over their purchases.

Madam, I thank the Minister for the answer. As I understand it, there is this Balcony Bonus Gross Floor Area (GFA) scheme. It provides the developers a bonus to build up to 10% more than the allowable GFA. Because of this, the developers apparently build extra-large balconies, sometimes, one-third to half the space of the liveable space inside the apartment. That has caused some misery among the buyers. We hope that MND can consider regulating the size of balconies.

Madam, just to be clear again, because the Member had asked about air-con ledges and balconies, air-con ledges are a separate issue. This was an issue that was publicised in the media recently. That is a separate matter from a Bonus GFA matter.

The Bonus GFA applies to balconies. Indeed, there is such a provision today. I think it has generally worked well in providing us buildings and residential developments that add to our physical landscape. Part of it is making sure that the information that is provided to buyers is very clear: what constitutes balcony space, what constitutes usable space.

As I have said, this information is mandatory and we will continue to make sure that developers publicise the information properly. We encourage home buyers to look at the prospectus carefully, especially if they are buying flats based on plans, and make informed decisions about their purchases.