We have known of the crazy land prices in certain hotspots near KLCC. It can be as high as RM3,500psf and potentially even higher in future. In comparison, my friend’s uncle’s land somewhere in Teluk Intan was sold for just RM8 psf not too long ago. Haha. Yes. RM8 psf versus RM3,500 psf. What’s happening anyway? Well, it depends on the potential gross development value for that piece of land. Surely a piece of land right next to KLCC is going to be expensive because it is a desirable place to stay for the super wealthy. They want to wake up with a view of the tallest twin towers of the world today.
Another reason why certain plots of lands, even if they are nearby one another is different in pricing is also because of the plot ratio. In brief, plot ratio determines how much a developer can build on that piece of land. Assuming the plot ratio is 1:10. This meant that the developer can build something which is 10 times the size of the land area. How? Build up into the sky lah. Now you know why buildings are growing ever taller every year on ever smaller plots of lands?
Sometimes, the plot ratio is also revised upwards for certain reasons such as for affordable housing. Of course, this would also meant that the density is getting higher and the supporting infrastructure such as roads etc must also be upgraded in tandem. Otherwise, welcome to jam havoc in the future. The usual plot ratio for DBKL is 1:6 but it was reported in news reports that for Kampung Baru, the plot ratio can be 1:10. In an article in theedge some months back, according to James Goh, head of investment at Rahim & Co Chartered Surveyors Sdn Bhd there were instances where the plot ratios approved were as high as 1:12 He gave an example, UEM Sunrise Bhd’s parcel, which is the old Wisma Angkasa Raya, has a plot ratio of 1:12
I think if a certain area is well connected via roads, LRTs and even the future MRTs, the plot ratio can be approved higher. Historical numbers may meant nothing more than just historical numbers. Higher plot ratios may also mean a slightly cheaper unit. After all, higher density projects are always priced lower than the lower density ones, right? Happy buying higher density if you are okay with it.
written on 28 June 2015
next suggested article: Low Density is not luxurious, ok?
Higher plot ratio better, right?
Comments
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Hi Chialih,
Too much of high density is quite hectic in term of maintenance control in long term, it is quite challenging for management to manage the building and facilities, for instance, the delay of maintenance fee payment, parking issue, security matter, rubbish management and so on, you know lah, problem exists when there is a people. It is not an easy task unless the management has to be really really strong, enforcement has to carry out for any rule violation, however, look at the situation, how confident do you think … for maintenance of high rise in Malaysia?
Personally, i do not prefer to that type of property with high plot ratio, my answer is.. not a better, sometimes, there is no choice due to the factor of affordability but quality in maintenance and services are also need to be taken under consideration apart from affordability. it is also my concern.
Actually, the people who benefit the most is developer, after they have completed the project and it is not their matter anymore by then. please correct me if i am wrong, it is solely my personal opinion.-
Ang, I think developer would definitely benefit. However, for management, I have been to projects which the density is lower but the maintenance is totally lacking. My friend’s apartment in Greenland is considered lower end but the maintenance is superb. My current condo is 733 units, also considered high density but the maintenance is second to none. I am more confident if the mgt is from the owners themselves versus the developers’s people, definitely. Cheers.
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Hi Chialih,
It is quite subjective, it still depends on the management, Agreed with you that if the management committee come from the owner of the building, definitely, it is more advantages. : ) -
Plot ratio verses maintenance of management? Think again. Plot ratio determination is from the authority Master Planner. The relevant department will determine which part of city density needs to revised or changed. It is the structural planning for development of the city or state. They zoned the land for agriculture, commercial, residential, industrial etc. and then next the density as development determines. It can be interceded by politicians to favour certain categories or areas. Mathatir before he retired, re- zoned an entire area of agriculture land of his faithful supporters into an industrial area, making them( padi farmers) millionaires almost overnight.
Density or plot ratios are determined by population growth of the respective cities. The inner city areas are likely to be revised upwards( plot ratios) when populations of urban areas grow. In inner city areas, when population grow, density or plot ratio has to be revised upwards, matter of time. Heights of buildings are actually limitations rather than enablers. E.g. When plot ratio (PR) is 1:10, the Gross Development Areas is 10 times the land area. Land area x 10 is the Gross Development Areas or Built-up. Maximum Height given becomes a limitation. One need not build up to its height given but broad or horizontally to use up to its max of Gross Development Areas base on other restrictions such as setbacks etc.
Maintenance is actually a temporary thing. Usually after the developer’s period, usually a year or two after completion, the developer hands over to the owners by calling AGM elections for owners to manage their own estates. Weak or strong committees would very much depends on the owners themselves. If owners of estates believe in cheap monthly/ quarterly maintenance fees, they will elect those committee representatives to believe in short term gains at the expense of those long term stayers. Imagine a family who share in housekeeping of individual units. If a family does not believe in contributing appropriate amount of fees to upkeep giving excuses like ‘ we are going to sell soon’ , the condo will soon run down. Nothing to do with employed managing agents. It is the elected committee representatives who are owners to decide. They then employ managing agents to run the daily operations for the elected committee of the estate. Most of the time, the elected committees change annually. It is the same as a country when we elect governments. We elect poor government we only have ourselves to blame. Good maintenance is actually decided by the owners who elect their representatives.-
Thanks Frederick. Some very valid points.
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