GFA is the core asset in real estate
GFA – Gross Floor Area is considered as the core valuable asset in real estate. One of the significant governing regulation to GFA stated in Buildings Ordinance is Building (Planning )Reg 23. The Reg 23 (3)(b) have listed in literal form the areas which can be subject to non-accountable GFA whereas the Reg 23(3)(a) has included all areas within the external of buildings as GFA countable.
The Ordinance allows some accountant GFA in 23(3)(a) becomes considered as non-accountable GFA through the power vested to Buildings Authority by section 42 of Buildings Ordinance and explained by the ADV – 02 (PNAP 30 in former version). Some GFA calculation cases are further complicated by the injection of sustainable development requirements stated in APP 151.
Existing Building GFA vs Regulation 23(a)
In existing Building which was built in decade ago plus , the control to the non-accountable GFA was relied by Reg 23(3)(b) which generally covered the essential plants / duct / carpark etc. When the landlord wants to review/revamp the existing GFA hoping for unlocking the hidden potential, the latest requirements in 23(3)(a) mentioned before will kick in to the backdrop.
Some areas within the building which had been exempted from accountant GFA in the past may have to re-examine under Reg 23(3)(a) and is assessed in the ADV -02. The interesting but painful point is that some typically exempted in the past may now become accountable unless the modification is granted by BA. In some case, the modification is not straight-forward but under complex assessment such as BEAM requirement in APP 151. Obviously, the latest GFA requirements has blocked the unlock of some potential GFA.
Example showing the effect impact from tightening of GFA assessment
Assuming there is plant room , this plant room is assumed be acceptable by Reg 23(b). The implication of GFA will be manifest because the protected lobby going with the plant room will be exempted. To the contrary, If the said “plant room” is NOT in Reg 23(b), the GFA exemption will be at the stakes. The wall and associated protected lobby solely serving for plant rooms will be subject to the “non-mandatory features”. The area of wall and associated protected lobby will be barred by the overall cap of 10% in paragraph 4 APP 151 for non-mandatory features) . The capping 10% will effect some GFA from non accountable back to accountable.
Case by Case assessment
Valuable assets in the urban areas are all GFA driven for the best maximization of property value. This is the key driving incentive to closely review and revamp from time to time to unlock the potential hidden GFA in the active asset management.
(Reader is advised to look also other strategies which have been shared in our other blog” of this website)