Some condo developments have doubled their green areas in their developments from 5% to 10% due to recent changes in condo development legislation.
This will affect both the developer and potential buyer in several ways, some negative and some positive. Firstly let’s look at this from the developer’s point of view. An increase in green area in the development means there will be less land to build on, up to 5% less space for constructing living space. This will affect the unit cost, size for size compared to earlier developments the cost of a square meter of condo space will need to be increased in order to realise similar profits. One approach here is to reduce condo unit size, maintaining a similar price scale to previous constructions, but this still results in in an increase in the cost per square meter of a condo to the buyer.
On a positive note, green areas in a condo development can create a more harmonious living environment than those without. In turn this can be used as a great marketing tool for promoting a more environmentally sound way of modern living, this is a strong selling point especially if the units are smaller.
Another way in which the developer can maximise use of space is through clever design. Some smaller units can be compact and use space effectively with sound, intelligent modern architectural and interior design. The use of mirrors, for example, can give the illusion of space and is very effective in helping to sell a property.
From the buyer’s perspective, it is much nicer to live in a condo development with well thought out green areas. The space and sense of freedom in a green environment will help the buyer feel they are getting good value for money too. But the reality is that if a larger percentage of land space is having to be set aside for green areas the buyer will either have to pay more for a large condo or purchase a smaller unit.
The developers will need to focus on lifestyle and facilities in order to stay ahead in this very competitive market. Increasing land costs are also fuelling the unit size reduction in order for the developer to realise good profits. It might be worth comparing older established re-sale condo prices to the newer developments and compare unit size, facilities, swimming pool size and overall construction quality. You could be in for a surprise.