Building Design Questions

APC Project 1 - Questions

• Hypo: A hypothetical property development project
• Direct Comparison: A valuation method comparing the subject property to similar properties
• Comparables: Similar properties used for comparison in valuation
• Adjustment: Modifying comparable values to align with the subject property's characteristics
• GDV: Gross Development Value
• Interest Rate: The rate at which interest is charged on a loan
• Professional Fee: Fees for professional services related to the project's valuation
• Developer's Profit: The profit the developer expects from the project
• Development Period: The time taken for the development to be completed
• Marketing Cost: Cost associated with market promotion and advertising for the project
• Construction Cost: Costs associated with the physical construction of the project
• CP Comparables: Comparables used for assessing construction costs.
• MLP/ Planning: Master Layout Plan required for large-scale developments
• Premium: Extra cost or charge for certain features or circumstances
• BC extension: Building Covenant extension when there is a delay in construction
• Retail: Retail component of a development.
• BS: Business space.
• Others: Miscellaneous categories for project-related items
• Project 2: A second hypothetical project, additional notes or different aspects of the topic.

Definition of Market Value

• Market Value is the estimated price a property would trade for between a willing buyer and a willing seller, fairly, knowledgeably and without compulsion.

Why is your transfer plant 3m?

• Reference to similar developments nearby indicate a 2.9m to 3.5m range for transfer plates, depending on the number of stories.
• A 3-meter thickness of the transfer plate is considered appropriate for the proposed development given the intended number of stories.

What is the purpose of a transfer plate?

• To transfer load from upper structures to lower structures, especially useful when differing floor layouts exist.
• It allows more flexibility in lower-level design, such as utilizing less columns and providing more space for common areas.

Is it accountable for GFA?

• Not accountable for GFA, if it fulfills the building's requirements
• Transfer plates not affecting GFA if it does not exceed building storey heights.

Can you explain the headroom of your hypo?

• 3.15m headroom is frequently used in nearby developments, including Phoenext, Southsky, and Novoland.
• Other comparable developments in the area are considered in the assessment to confirm 3.15m as the most appropriate headroom.

Did you notice that most of the developments in Tsuen Wan also have a lower headroom than 3.15m?

• Several developments in Tsuen Wan have lower headroom.
• 3.15m headroom is still considered marketable because there are examples in Tsuen Wan already, even if some have lower headroom.

Have you tested the other headroom?

• The difference in headroom of 0.1 meters is not substantial enough to affect the marketability given the existing examples in the market.
• A higher headroom could fetch a higher unit rate, however, the increase in GDV is not sufficient to compensate for a decrease in GDV due to the fact that a higher headroom increase size.

Why do you put the refuge floor on the top roof instead of middle floor?

• The top roof structure is considered a feasible refuge floor position, complying with Building Department regulations and providing 50% of the gross floor area for safe spaces.
• It considers less usable area for lift lobby, and more reasonable space to be utilized.

Why do you provide a 3/s podium instead of 2/s podium?

• Segregating government accommodation from residential sections enhances privacy and reduces the potential for noise/nuisance to residents, thus improving the development's overall value.
• A higher podium, offers better views for common rooms, resulting in a higher saleable ratio of the unit.

Why separate GA instead of putting on the G/F?

• Separating recreation facilities and childcare centers from residential portions improves privacy and reduces potential for inconvenience to residents.
• This gives a better image and branding.

Why is a separate lobby designated for CCC?

• More privacy/ reduced nuisance to residents from visitors.
• Ensures safety from residents.
• Required by technical ordinances.

Is there any statutory requirements of provision of CCC?

• Child Care Services Ordinance
• Child Care Services Regulations
• Operational Manual for pre-primary institutions

How many comparables in your opinion is enough?

• 2 or more comparables are considered sufficient to support the analysis in detail for the given case.

How come you propose 13 units?

• 13 units per floor is not unreasonable in the current market.
• Examples of similar developments with 11-17 units per floor are given.

Why no balcony for both your before and after scenario?

• The provision of balconies and utility platforms could increase in land value, however, additional lease modification is required.

How is the lease modification for the balcony and UP?

• Lease modification is subject to completion of necessary lease modification and payment of premium for the modification, allowing the director to exempt floor space for balconies and other features.

Why your hypo dont have sky garden as your s.16 application scheme has

• Sky gardens are not considered in the proposed development because of the low marketability,
• The increase in GDV is not sufficient enough to compensate for the increase in construction cost.

Why do you provide a 3/s podium instead of 2/s podium?

• By raising the podium, more saleable area benefits from better views, increasing the land value,
• Raising the podium increases saleable ratio through more units.

Why not allow larger unit size, with 10 units per floor?

• Larger units potentially have lower marketability due to the higher number of units per floor
• More construction costs due to the number of units per floor

Is the surface of the transfer plate enough to put the flat roof?

• Given that the area of transfer plate meet the requirements of the flat roof structure.
• There are examples that meet the required standards concerning the area of the transfer plate.

How to access to the roof area?

• Internal staircase is available for access to the roof.
• Stair area is considered as an ancillary area for the building.

How did you arrive at the size of your reference unit?

• Size of reference units are based on comparable developments in the same area, adjusting where needed.

As you reference new development in other districts, how can you be sure these larger units are marketable in Tsuen Wan?

• Recent developments in the area already showcase similar larger unit sizes with successful sales.

Why not allow larger unit size, with 10 units per floor?

• Larger units might reduce marketability because of increased construction costs.
• Fewer units per floor is more appropriate and cost-effective.

I understand that you made reference to the development in Tsuen Wan for your flat mix, but they are all built several years ago. Any thought?

• Valuation is based on the market conditions at the valuation period.
• References are made to new developments to ensure accurate representation of current market conditions.

Will you change your flat mix today as at today's market?

• Possible adjustments may be considering the relaxation of LTV ratio and decrease in interest rates, increasing the demand for larger units.

Have you considered developing an office?

• Office building in Tsuen Wan is not suitable for the location and the current market situation. This is because:
• The permitted GFA in the area is too small for an office building.,
• Current market conditions for office buildings show high risks.

How many comparables are in your opinion enough?

• Two or more comparables are sufficient to support the analysis in detail for the given case.

Is the GA of your direct comparables also fully reimbursed?

• Reimbursement of GA depends on the specific terms of the lease. It's critical to verify the comparables' lease details as the cost associated with GFA can impact the overall project valuation figures.

What is Net Operational Floor Area refers?

• A total area of the building, excluding things like partitions, staircases, service areas etc.

What is the size of your CPS?

• Size of the parking spaces is based on comparable development size, given the surrounding environment and other related factors.

What is your basis of adopting average area for car parking space?

• Standard practice is 35-40sqm for car parking spaces.
• Comparisons to nearby developments and traffic consultancy reports helped.

Do you know the future supply of residential units in your subject location?

• There is no future supply of residential units in the area. It was concluded there is no need for extensive evaluation.

Why don't you merge the unit at the top roof into a larger special unit?

• Merging might reduce marketability by making the unit(s) too large.
• Units from comparable developments considered to have a balance of sales pace and design.

Why you did not apply the Direct Comparison Method?

• Direct comparables may need thorough adjustments in terms of location, time, and other factors which makes it not suitable.
• Direct comparison is an effective way to give a general view of the market, however, there is a substantial difference to the subject and a thorough analysis should be conducted.

What are your comps selection criteria?

• Criteria for selection is based on similar floor area, location, and transaction time.

What is arm's length transaction?

• Transaction between unrelated parties, without any influence from pressure or relationships.

In your comparable analysis, you adopted the comparables which is having 20% adjustment and the other comparables is below 10%, Do you think this is an arm's length transaction?

• Adjustments of 20% can be related to the market condition and the location of the property
• It has thorough research to ensure the comparison is appropriate to the case.

Why not use 1st hand transactions?

• Few, if any, 1st-hand transactions are available in Tsuen Wan at the time of valuation,
• 2nd hand transactions with readily available data are used.

Why do you adopt a 10% downward location adjustment for Aurora?

• Aurora is located in an area that is better than the subject site based on several factors, hence required 10% downward adjustment for its relative location.
• Locality is considered less important when considering comparable sale price in CPS.

Could you explain how you came up with these developments...

• Selection is based on similarities in site characteristics, location, scale, and other comparable requirements.
• Chosen comparables are in the same cluster as the subject, have high similarity.

Why don't you consider Indihome as your comparables?

• Indihome has too many units per floor.
• The transaction rate of Indihome is less.
• More appropriate comparable developments were already available.

Why don't you consider Parc City as your comparables?

• Parc City is considered too superior to the subject site concerning aspects such as locality, accessibility, and views.

Why you did not consider Po Shek Mansion and Sheung Chui Court?

• Po Shek Mansion is too old.
• Sheung Chui Court is a more recent transaction, still more recent transaction can be found for reasonable comparison.

Why does a different BR require different comparables?

• Different bedroom types might reflect different market values.

Did your comparables provide balcony?

• Some comparables had balconies, which were considered for the adjustment calculation.

Why no conversion factor for UP and Balcony but same unit rate?

• Balconies and the like are generally integrated into the saleable areas and do not warrant separate conversion factors.

Why don't you collect new comparables for your before scenario?

• The market for similar properties is deemed to be stable within a set period, this stability makes similar comparables more reliable for the Before scenario.

What are your comps selection criteria?

• Selection criteria is based on similar floor area, location, and transaction time.

What is the % adjustment for each floor you have adopted?

• 0.4% per floor, which is justified by the analysis of comparable sales in the area.

How do you make quantum adjustments?

• Larger units might command higher unit rates

Why not use 1st hand transactions?

• 1st-hand transactions are not available for direct comparison due to remoteness with valuation date.

In your comparable analysis, you adopted...

• A clear justification for the 20% adjustment was provided and thorough research to ensure that comparison is done fairly.

Have you considered "Noise" adjustment?

• Noise mitigation measures are factored into the floor adjustment.
• Noise was found to not be a major issue for the location.

Have you considered "Orientation" adjustment?

• Pair analysis shows that orientation has a minimal impact,.

Why do you adopt multiplication instead of summation for adjustment?

• Summation is less reliable compared to multiplication. The multiplication method better addresses the interrelated effects of various factors (location, size).

What is the % adjustment for each floor you have adopted?

• 0.4%, justified by analysis.

How do you perform the floor pair analysis?

• This would be a detailed comparison of the floor levels of paired properties and the adjustments required.

How did you perform the size pair analysis?

• This would involve a detailed comparison of the size/floor areas of paired properties and the adjustments required.

How did you perform the view pair analysis?

• This would involve a comparison of view aspects of comparable properties and the adjustments reflected.

How did you perform the headroom pair analysis?

• This would involve comparison of headroom to reflect the value of the comparables.

You said Ocean Pride/ Ocean Supreme is too supreme...

• Ocean Pride/ Ocean Supreme was considered too superior for direct pairing due to distinct characteristics and is not a suitable comparable.

Did you consider court case about what adjustment the court adopted?

• Court cases are considered, but the specific research findings are prioritised in this case because the site has more recent transactional history.

Why don't you consider Indihome as your comparables?

• Indihome has too many units per floor to be a good comparable, meaning that the ratio is too high and not suitable for this particular case.

How did you arrive at your view adjustment?

• View adjustments are based on view comparisons done with similar developments and the effect on price.

Why do you adopt comparables located on such a low or high floor level?

• Time is of significant value when considering comparable sales, and time-related factors are the best indicators for assessment.

What is the % adjustment for each floor you have adopted in your price list?

• 0.4% for each floor, this is justified in the analysis and research of similar/comparable properties.

How do you make quantum adjustments?

• Larger units usually command higher unit rates.

How did you do the adjustment on building age?

• Pair comparison of developments with varying ages to assess the impact.

Did you consider other factors in the building adjustment?

• Time and other relevant factors were considered for adjustments.

What is the use of sensitivity analysis?

• Sensitivity analysis is used to assess how the final price changes if one of those valuation criteria changes.

This quiz explores various aspects of building design, focusing on transfer plates, headroom specifications, and refuge floor placements. Participants will assess the relevance of these design elements in marketability and compliance. Test your knowledge on building regulations and best practices in architectural design.