ABSTRACT
For decades, residential properties were purchased and sold in Hong Kong without a standardized method of measurement on saleable area. Yet, as the definition of saleable area includes the area of balconies, utility platforms and prefabricated walls, the Scheme operates harmoniously under the new regulatory framework based on the Ordinance. The Steering Committee and Legislative Council had the opportunity to give a new definition in drafting the legislation, yet they were justifiably reluctant to deviate from the established method of calculation by the Consent Scheme. They used to be part of saleable area. In 2001, the Lands Department required that 'The areas of any cockloft, bay window, car-parking space, yard, terrace, garden, flat roof, roof and any other area as may be permitted by Legal Advisory and Conveyancing Office (LACO) to be included in the saleable area is specified separately'. The fact that the first-hand residential real estate market in Hong Kong is always a seller's market is definitely relevant.
