Property developers use plot ratios to calculate the amount of gross floor area they can build on a plot of land. They are put in place to control the density or amount of development in an area, and play a role in buyers’ consideration to buy a house there.
Also known as Floor Area Ratio (FAR), a Plot Ratio is the size of a plot of land to the amount of floor area that can be built on it. This does not include above-ground car parks or how high a building can be built; if the base of a building uses less land, it can be built higher. Some developments can have height restrictions along with the plot ratio, and the developer will have to build underground if needed.
Plot ratios for areas within a local council are stated in its local plans (Rancangan Tempatan).
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If the approved plot ratio is 1:7 and land size is 1,000 sqft, the development can have 7,000 sqft. Of total floor area.
Local councils and state guidelines determine plot ratios in Malaysia.
Some factors include:
In KL, the plot ratio is set to a maximum of 1:10 for both commercial and residential properties. The high plot ratio in prime areas is meant to balance the high land cost and encourage more homes/ units to be built within a piece of land.
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Approved plot ratios in local plans cannot be increased without consultation and review from the local councils. Individual land owners can also apply to change the land use on their title to gain a higher plot ratio. Some developers are also granted plot ratio increases if they fulfil certain requirements such as making pedestrian walkways, escalators in public spaces or overhead pedestrian bridges. The increased plot ratio is basically to balance the expenses for these facilities.
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In recent years, a green plot ratio (GPR) has popped up and is used to calculate the amount of plans and greenery in a development. It’s not legally required but is becoming more important as architects and planners attempt to incorporate more green space into urban buildings.
It is similar to plot ratio but uses a variable called ‘leaf area index’ (LAI) instead of floor area. This is the single-side lead area (area exposed to the sun) per unit of ground area. Basically, the more leaves a plant has, the higher its LAI. A 20 sqft. Plot with trees or bushes will have a higher index than a same-sized plot with grass.
Plot ratios affect a development’s density. Your prospects should know if the infrastructure in an area can cope with its population. For example, will the roads in an area be able to cope with the traffic? Is the drainage system sufficient? They will take the answers to these questions into consideration when looking for homes.
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