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Saleable Area vs Gross Area

  1. #1

    Join Date
    Aug 2017
    Location
    Kowloon, Hong Kong
    Posts
    60

    Saleable Area vs Gross Area

    Hi,

    I am trying to make sense of what it means by saleable area vs gross area as often described in property sales in Hong Kong.
    From some sources, saleable area includes the wall area of the apartment. If so, I gather the actual floor space is even less?
    What is the correct definition?


  2. #2

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    5,680

    Saleable area or "net" size or SA is the total square footage including bay windows and balcony. However legally they cannot include platforms, terrace or rooftop. Some agents and landlords do bundle terraces or rooftops in their saleable area advertisement to gain an illegal advantage in attracting your enquiry. This is a violation with the EAA and could be reported if you see abuse by particular individuals.

    I am not sure if saleable area is calculated from the outermost, midpoint or innermost point of the wall.

    Gross area is the total square footage of the estate including the common areas. It doesn't necessarily reflect the size of the flat but it gives you an idea if the estate is larger and potentially has facilities or not.

    Some people say the flat has better efficiency. This means the saleable area and gross area are close to each other. There is usually a percent. Let's say 70% is very common. So if you find a flat with 90% efficiency that means there is probably a small or no lobby and no facilities. If you find something with 50-60% efficiency then there should be a full clubhouse, podium, nice lobby etc.

    However I do not believe the new flats are advertising gross area anymore, rather only saleable area. When I was a newcomer I was annoyed about gross area and thought it was "cheating" but after living here a long time and currently in the flat search phase again, sometimes you desire a building with certain minimum space as it is how you are welcomed home everyday. So be open minded and try to understand the different viewpoints is key.

    Yuhikaru, jrkob and spode like this.

  3. #3

    Join Date
    Aug 2017
    Location
    Kowloon, Hong Kong
    Posts
    60

    Thanks, this is very comprehensive and my take-away is that I have to view the unit to REALLY know what I'm getting into, as there are just too many ways to interpret the definition. The unit I am staying in now is somewhat bigger than what I think it is...so they probably include the wall area or something.

    MandM! likes this.

  4. #4

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    5,680

    Well you always have to see the flat.

    Important considerations are also direction. If you have west facing windows, your flat will be super hot and likely you'll have to keep curtains closed all day.

    There could be a full building renovation, a new building site next door (with 2 years of noise 6 days a week).

    Not so much a problem in HK but in China. Sometimes the height of the ceiling is not tall enough for a person to stand.

    However in HK there are odd shaped rooms. In fact I have even seen a window but a building built up right against the window, so now you cannot open the window and there is zero light coming in. This is quite rare though but off shaped rooms, kitchen or toilets are commonplace.

    So a flat viewing is a must. Unless you happen to know the building and are doing a full renovation.

    Yuhikaru and spode like this.