Plot ratio is a specialized term used in urban planning, and you may have heard it occasionally in the real estate industry. It is an important indicator of urban development, but do you know about the definition?

Plot ratio is linked to many land planning issues, so it is a topic worth exploring. In this article, Spacious digs deeper into this topic and explore the development constraints behind it.

Jump to: What is plot ratio | Transfer of plot ratio | Relaxation of plot ratio | Restrictions and Challenges | FAQ

What is Plot Ratio?

Plot ratio refers to the ratio between the gross floor area of a building and the area of the site on which it is erected.

Generally speaking, according to the regulations of the Hong Kong Planning Department, the highest plot ratio for residential use is about 8 to 10 times, mainly on Hong Kong Island, while the highest ratio allowed for commercial use and other areas is 15.

If a site has an area of 1,000 square feet and a plot ratio of 8, the maximum gross floor area for development would be 8,000 square feet.

Why Plot Ratio is Set?

Plot ratio is a key indicator for defining building density, and it affects the population of the area. As land resources in Hong Kong are scarce, it is important to make efficient use of land while balancing the needs of the community, providing sufficient facilities to support the population.

The ideal plot ratio is one that can make full use of land resources without putting excessive pressure on the community.

Transfer of Plot Ratio

It refers to the concept of transferring unused plot ratios from one building to another. It may also involve the transfer of development rights. Transferring plot ratio can help increase the flexibility and efficiency of land development.

Lower Albert Road, Central

Transfer of Plot ratio is often used for heritage conservation projects. For example, in 2011, the government proposed to reconstruct the historic buildings owned by the Anglican Church on Lower Albert Road in Central. The church is allowed to transfer its unused plot ratios to another site.

The entire reconstruction plan involved an area of over 30,000 square meters, which was 10,000 square meters larger than the size of original site. To balance the plot ratio, the government approved part of the building complex (including a kindergarten and a theological seminary) to be transferred to other site on Mount Butler for reconstruction.

HSBC Main Building, Central

According to existing regulations, if a developer wants to widen the street where a building is located or convert the ground floor space into public use, they can transfer unused plot ratios to increase the total floor area of the building. The HSBC Main Building in Central is an example of this, where the ground floor space was converted into public space to increase the total building area.

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Relaxation of Plot Ratio

In addition to transfer of plot ratio, many people also suggest the government to relax the plot ratio for developers to construct more housing.

There are several benefits to the relaxation of the ratio. One of those is to increase supply to meet the housing needs of Hong Kong.

Secondly, increasing the plot ratio in certain areas can strike a better balance between urban and rural development.

The plot ratio for residential development on Hong Kong Island can be as high as 10 times, but may be less than 3 in remote areas of the New Territories. Also, many areas with low conservation value are abandoned. The land resources go to waste.

If the plot ratio for some New Territories land can be relaxed for building homes or other infrastructure, it can enhance rural living with more housing options.

Thirdly, relaxing the plot ratio can speed up redevelopment of old districts. Developers are reluctant to reconstruct immature districts in the New Territories as the plot ratios are relatively lower.

For example, Tsuen Wan just has a plot ratio of 5, compared to 7.5 in Sham Shui Po. The developer is more reluctant to carry out redevelopment in TW due to insufficient space.

If the government is willing to relax the plot ratio restrictions, it can attract developers to rebuild districts with lower plot ratios, and hence speed up urban development.

Restrictions and Challenges

Whether it is transfer or relaxation of plot ratio, there are various limitations and considerations under the existing regulations.

Firstly, the government has already formulated the “Outline Zoning Plan” to specify the plot ratios of each area. If developers want to change plot ratio, they need to go through complex processes prior to Town Planning Board’s approval. Such procedures include modifying land leases, exchanging land, and paying land premium.

Another major consideration is whether the transportation network, infrastructure and even environmental factors can support the increased density of the land after the relaxation of plot ratio.

If existing infrastructure is not sustainable, the Urban Renewal Authority may have to carry out urban renewal projects prior to the relaxation of plot ratio.

The plot ratio can determine the building and development density of an area. Before buying a property, pay attention to the plot ratio of a residential area to predict its livilbility. A low plot ratio may indicate insufficient facilities and development for the community..

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