Why This New Condo Rule Makes New Launch Condos More “Expensive”: GFA Harmonisation Explained

As we get more and more new launches with the new Gross Floor Area (GFA) harmonisation in effect, it may get more confusing for new buyers as they try to make sense of the new changes. On the surface, it looks like a simple change in technical definitions; but in reality, it could make condo floor plans more efficient; even as it has a distorting effect on price psf.

So how does this new change really work? Here’s what you need to know:

What is GFA harmonisation?

On paper, this is just a way to standardise how GFA is measured by different government agencies like URA, SLA, BCA, and so forth. Prior to this, the methods used were all different. Beyond this, however, GFA harmonisation matters because it fixed two big issues:

First, developers can no longer squeeze extra dollars out of buyers, with tricks like huge planter boxes, oversized air-con ledges, or other space-wasting features that add to the square footage they can sell.

Second, strata void space – which is measured vertically from for to ceiling – is gone; a move that might revive the popularity of high-ceiling units, as buyers no longer feel they need to pay for “empty air.”

How it’s already taken effect

Lentor Mansion has the honour of being the first new launch to follow the GFA harmonisation rules. You can already see how it’s affected the floor plans, in the linked review: notice that all the usual shenanigans, like big bay windows, are gone (while some units have balconies, they’re not monstrously oversized). We previously showed how this matters in terms of price comparison: 

Even if the actual square footage of the unit is smaller, you might be getting more space than you’d find at, say, The Line or these two other condos, because every square foot is actual, usable space. There’s no point having an extra 100 sq. ft. if it’s just taken up by protruding bay window ledges.

As we’ve already seen, a common sales pitch is how much more value for money you’re getting, between recent launches and the older 2000s-era condos. Now, we will see more sales pitches highlighting why a new condo with the GFA harmonisation is better than even the recent new condos on the market. One example would be the about-to-launch Nava Grove (that has the new GFA harmonisation in effect), as compared to Pinetree Hill next door.

A look at how GFA harmonisation is affecting pricing

Due to the changes made, pricing in the current market can get a bit distorted. You’ll find the older and less efficient layouts will end up looking much cheaper, although they’re not. Let’s consider a theoretical three-bedder condo unit:

If this condo were launched pre-harmonisation, it might be sold as 1,001 sq. ft., inclusive of features like air-con ledges, void space, etc. The price tag is $1.6 million, so that comes to about $1,598 psf. 

Next, let’s look at a similar unit, but post-harmonisation. Once we deduct the air-con ledge, void spaces, etc., the actual square footage drops to 947 sq. ft. The price is the same, at $1.6 million. But this would come to about $1,690 psf, which appears to be much more expensive. 

This can have quite an impact on how buyers perceive new launches. It is, for instance, a norm for new launches to be priced at $2,200+ psf these days. However, if you factor in the inefficiencies of pre-harmonisation projects, the price discrepancy might be a little less shocking.

There’s also some concern over older resale projects, where the square footage data hasn’t been properly updated.

It’s only been around two years, and there’s quite a number of resale condos out there. Some of the projects may still be using older data. For example, a high-ceiling unit, which was built in 2010, may still be marketed with the strata void space factored in. This may not be out of any intent to cheat you; the seller may just be following the old specifications from when the unit was bought.

So again, when comparing between pre and post-harmonisation units, bear in mind the pre-harmonisation ones might look deceptively cheaper. 

For these reasons, we’d suggest you look beyond simplified comparisons of price psf: pay more attention to the floor plan and quantum, to get a sense of actual value. This is a good idea in general anyway, as certain unit variations – such as dual-key layouts – also cause distortions in price on a per-square-foot basis.