Answer Posted on Nov 14, 2010
You are totally correct, psf for Landed property are calculated based on Land while Strata Titled properties are based on Built-up. Having said that, sometimes it's misleading to just base on land psf to gaunge the value of the Landed properties in a particular area or district as buyers do consider the Built-up of the property when committing to the selling price. Eg, a 2 storey built-up (approx 2000 sqft) may fetch a lower price then a 3 storey (approx 3000 sqft) built-up, if all other conditions being equal.
Senior Marketing Manager
ERA Realty Singapore Pte Ltd
Answer Posted on Oct 3, 2012
The agent is just trying to manage the expectations of your friend who bought the terrace. But you are right in measuring the psf based on the land size rather than the built up and I'm sure your friend had bought it with the calculations based on land size psf too.
Answer Posted on Feb 9, 2012
Some buyers tend to just use the selling price divided by the land size. But as a real estate salesperson, he/her needs to explain that this calculation is not accurate.
Supposely, the seller had spent $800k on a tear down & rebuild cost, this has to be factor into the selling price as well. If you put yourself into the seller's position, how would you feel if some buyer like your house but made an offer base on land size? It means whatever you had spent on your house, comes to zero return.
If you really wish to purchase just based on land size, i suggest to look out for those "tear down" condition house.
Answer Posted on Nov 6, 2008
Bill Tey was right in his answer, one has to look in two folds, as property developer/agents and savvy investor or specualtor's point of view. The ccalcualtion of psf is onlya figure to determines price index ratio as comparision and indicative for bank assessment for loan quantum, many property analyst used it as bench-marking for reports etc. Relatively speaking agents would like to use the lower psf based on land area whichever is higher to determines lower psf values.
It's not only psf plays a part, many other factors, key elements contributed to the sales process. Service-orientated sales personnel.
Answer Posted on Aug 26, 2008
Hi Albert Lim, Landed Sale Price calculation = Price of Land + Price of Construction (less wear & tear). Rgds Ravin 9798-5917 fr KNIGHT FRANK
Answer Posted on Mar 15, 2008
If filing a complaint is necessary & if the agent is a IEA(Institute of Estate Agent) listed agent, maybe you may want to pursue the matter with the IEA?
Their contact details is
480 Toa Payoh Lorong 6
HDB Hub East Wing #08-02
Telephone: 6323 1770
Fax: 6323 1779
Answer Posted on Dec 20, 2008
Agrees with Howard Teo, file a complaint if necessary to IEA.
Clear cut case, No further illustration is needed.
Answer Posted on Mar 24, 2008
I don't think there is any hard and fast rule about price per square foot for landed properties. this is only useful as a comparative figure between 2 different property.
In all landed property, there is a price element associated with the land and another element associated with the house. neither the PSF based on land nor the built-up space give a true picture of the value of the property. using PSF for the built-up in situation where the built-up area is significantly higher than the land area may be useful in comparing against similar living space in a condominium apartment.
I think anyone who is buying a property should be able to do a quick calculation of the PSF based on either land or built-up space and judge whether the price is realistic.