If you’re considering a new condo launch, you might have heard the term “GFA harmonisation” being thrown around a time or two. This change is already influencing property prices and designs in Singapore. But what does it really mean, and how could it affect you as a buyer?
Let’s get into the nitty-gritty details so you can better understand this significant update.
Table of contents
- What is GFA harmonisation?
- How does GFA harmonisation work?
- How GFA harmonisation affects your property pricing
- What does this mean for developers?
- Case studies: Condo A (pre-harmonisation) and Condo B (post-harmonisation)
- How GFA harmonisation affects the resale market
- So, does PSF not matter anymore?
- What else should drive your buying decisions?
What is GFA harmonisation?
GFA harmonisation, or Gross Floor Area harmonisation, refers to the effort to standardise the measurement of floor area across Singapore’s regulatory agencies, such as the Urban Redevelopment Authority (URA), Singapore Land Authority (SLA), and Building and Construction Authority (BCA).
In the past, there were inconsistencies in how GFA was calculated, which often led to confusion for both developers and buyers. This new rule eliminates those discrepancies, making it easier for everyone to interpret floor area measurements. Ultimately, it aims to create a fairer and more transparent property market.
How does GFA harmonisation work?
Under the harmonised rules, certain non-livable features are no longer included in the GFA calculation. This includes planter boxes, air-conditioning ledges, and large void spaces, which were previously counted.
High-ceiling void spaces, also known as strata voids, have also been excluded. This ensures that you won’t end up paying for vertical space that cannot be used. By focusing only on functional, livable areas, GFA harmonisation promotes efficient floor plans and gives you better value for your money.
How GFA harmonisation affects your property pricing
One immediate effect of GFA harmonisation is that the sellable floor area in new condos is smaller, which leads to higher per square foot (PSF) values. However, the total cost of units may remain similar since you’re no longer paying for non-functional areas.
For buyers like you, this means the emphasis has shifted toward usable space. Developers are now encouraged to optimise layouts, ensuring that every square foot you purchase serves a purpose. While the PSF rate might seem high, it reflects the enhanced usability of the space you’re paying for.
What does this mean for developers?
Developers now face the challenge of designing smarter, more efficient layouts. Instead of relying on inflated GFA figures to justify higher prices, they are focusing on creating functional living spaces.
High-ceiling units, which were once penalised for their void spaces, may see a revival. Similarly, balconies are being redesigned to offer better utility, making them more than just an aesthetic feature.
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Case studies: Condo A (pre-harmonisation) and Condo B (post-harmonisation)
Condo A (Pre-harmonisation)
| Unit size | 1,200 sqft (listed) |
| PSF price | S$2,000 |
| Total cost | S$2.4M |
| Livable area | 1,140 sqft |
| Non-livable area | 60 sqft (planter boxes, air-conditioning ledges, and a high-ceiling void) |
At first glance, Condo A appears to offer 1,200 sqft of space. However, approximately 60 sqft consists of non-livable elements such as air-conditioning ledges, planter boxes, and minor void space.
While this proportion may seem small, it still affects the true cost of usable space. The effective livable area is closer to 1,140 sqft. When calculated against the S$2.4M purchase price, the effective PSF based on usable space is about S$2,105 (S$2.4M ÷ 1,140 sqft), rather than the advertised S$2,000 PSF.
Condo B (Post-harmonisation)
| Unit size | 950 sqft (listed) |
| PSF price | S$2,300 |
| Total cost | S$2.185M |
| Livable area | 950 sqft |
| Non-livable area | 0 sqft (all non-essential features excluded from GFA) |
Condo B, developed under GFA harmonisation rules, offers a smaller listed size but excludes major non-functional elements such as air-conditioning ledges, planter boxes, and strata void spaces from the calculation.
This means the 950 sqft more closely reflects the functional internal floor area buyers can actually use. While internal walls and structural elements still exist, large “inflated” components that previously distorted unit sizes are no longer included.
Although the PSF price is higher at S$2,300, it more accurately represents the value of usable space. In this case, the effective PSF aligns closely with the listed PSF, improving transparency for buyers.
How GFA harmonisation affects the resale market
The resale market is also being influenced by GFA harmonisation. Older projects, which still use outdated square footage data, might seem more affordable on paper. However, these measurements often include inefficient spaces like high-ceiling voids, which can distort their actual value.
For high-ceiling units built before harmonisation, their listed square footage may seem attractive. But as a buyer, you need to remember that these figures include non-livable void space, making them appear cheaper than they are.
So, does PSF not matter anymore?
In light of GFA harmonisation, relying solely on PSF as a metric can be misleading. Pre-harmonisation units may look cheaper on a PSF basis, but they often include inefficient designs. Post-harmonisation units, on the other hand, reflect the true value of usable space.
This shift encourages you to focus more on the total quantum price and the functionality of the layout. Developers might still use high PSF rates in their sales pitches, but understanding what you’re really paying for is key to making informed decisions.
What else should drive your buying decisions?
When evaluating properties, consider metrics beyond PSF. Quantum pricing is particularly important, as it impacts your loan eligibility, stamp duties, and rental yield. Floor plan analysis is equally critical, allowing you to assess the functionality and value of the unit.
For instance, dual-key units, which feature separate entrances for different living spaces, can further distort PSF calculations. By focusing on the overall utility and livable space, you’ll make better-informed choices.
What do you think about the updated Gross Floor Area harmonisation? Share your thoughts in the comments section below or on our Facebook page.
About Sophiyanah David
Sophi, a seasoned copywriter specialising in Singaporean real estate and property, is one of the minds behind 99.co's informative articles. Like her colleagues at 99.co, Sophi is dedicated to keeping you informed about the ever-changing world of real estate so you can find your forever home. When off the clock, you can find her giggling and kicking her feet as she reads her romance novels, watching anime - if FMBA is not your fave, she might fight you (but you'll probably win) and looking up latest skincare trends.
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