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Peggy Sito

The inclusion of air-conditioner platforms in the saleable area of units at the Sino Land-led consortium's Island Resort in Siu Sai Wan has renewed concerns about inadequate regulatory controls on residential sales.

 Surveyors said such an inclusion was unusual and it could confuse consumers about the efficiency ratio of the units and the effective selling prices.

 They said it might be necessary to review the definition of saleable area if other developers followed suit.

 'It is rare that a developer builds a platform to install air-conditioners in a mass housing project,' said Tony Tse Wai-chuen, chairman of the Hong Kong Institute of Surveyors' general practice committee.

 Air-conditioner platforms were usually seen in houses or luxury flats at least 1,500 square feet in size.

 Those units had a centralised air-conditioning system and needed a room to install the related facilities, Mr Tse said.

 In that case, some developers might include them in the saleable area.

 Mr Tse said the move by Sino Land to include the platforms in the saleable area was acceptable based on the existing definition.

 The definition of saleable area means the floor exclusively allocated to the unit, including balconies and verandas but excluding common areas such as stairs, lift shafts, lobbies and communal toilets.

 Mr Tse said the platforms at Island Resort were not for common use, so they could be included in the saleable area.

 However, he said it was too early to say if there was a need to review the definition, adding that it was an individual case.

 His institute might review the case if more developers followed suit, he said.

 The problem of inadequate and misleading sales information has long plagued the industry.

 One key issue is the lack of a standard definition of gross floor area.

 Different developers include different proportions of common areas in the gross floor area.

 But Hong Kong purchasers are used to thinking in terms of gross floor area when prices are all quoted on such a basis.

 In the case of Island Resort, the air-conditioner platforms are also included in the gross floor area.

 On such a basis, the average price for the first 68 units to be sold is $4,288 per sq ft.

 Analysts said the inclusion inflated the gross floor area and resulted in a lower average price, which could set a wrong base to compare the prices with other projects.

 John Hui, vice-president of the Hong Kong Institute of Real Estate Administration, said there was no statutory definition of saleable area, even though the present definition was commonly accepted and adopted in lease conditions in consent schemes.

 'Consumers may need to do a bit more homework before they make a move to purchase,' Mr Hui said.

 Mr Tse said that as long as a developer clearly stated the size of the platform in the sales brochure it would not be unfair to consumers.

 He said the inclusion of the platform in the saleable area was a marketing strategy.

 In terms of the actual area homebuyers can use in the unit, which means a deduction of the air-conditioner platform and other areas, the price will be higher.



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Sino Land Co

Sino's air-con platform raises ratio concerns