Due to the pandemic happening in November 2019, the prices of properties in Singapore have been on the rise. Be it the public housing HDB flats, the private non-landed housing, and last but not least, landed houses in Singapore.
Work at home now is a new norm across the whole island. Even now, all measures have been easing off, yet the percentage of people working at home is much higher than before the pandemic.
Space is one of the important factors when you are purchasing a property for your own use.
Landed houses will be another option for families who need more space.
Many of my clients ask me. If I buy an old landed house, should I rebuild, reconstruct, or just A&A?
Old landed house, rebuild, reconstruction or A&A?
Let takes a look at the differences and the cost of each of these.
1. Rebuilt
3. A&A
1. Rebuilt (New erection)
Rebuilt or also known as New Erection.
A new erection is completely pulling down the whole entire landed property to build a brand new house. It will be very costly.
But for extremely old or uninhabitable houses, this is necessary.
Of course, sometimes is also an investment decision, eg. the current property doesn't take up the full GFA where it was given or you just wanted to have a house to your own taste.
Cost for Rebuilt (New Erection)
Construction Costs | from S$1.5M |
Procession Fees | S$20,000 |
Architect Fees | S$60,000 |
Structural Engineer Fees | S$30,000 |
Mechanical and Electrical Engineer Fees | S$20,000 |
2. Reconstruction
This means you are going to maintain the existing structure, with some possible changes.
1. The increase in Gross Floor Area (GFA) exceed half (50 percent) of the current GFA, to be considered reconstruction. Any change in elevation (e.g. adding one more story) also cannot exceed 50 percent of the current height.
2. The removal and replacement of existing external walls with new walls or the construction of new walls exceed more than 50 percent of the current GFA.
3. Structural elements e.g. columns, beams, slabs – The removal and replacement of existing columns/beams/floor slabs or the construction of new columns/beams/floor slabs are more than 50 percent of the current GFA.
4, Increase in storey height – Changes/ replacement of the entire roof involving an additional storey.
5. Change in housing form – Works which result in a change to the landed dwelling housing form, for example, from semi-detached house to detached house.
3. A&A (Additional and Alteration)
What are Additional and Alterations (A & A)?
Similarly, A&A refers to the renovation changes to the existing property or the building without affecting the foundation or the structure, but the changes are not more than 50% of the GFA
Example,
1. Propose an additional Gross Plot ratio not to exceed 50% of the approved Gross Floor Area (GFA)
2. External walls that are removed or replaced with a new wall do not exceed 50% of the approved external wall
3. Structural changes to the existing landed house, constructing new columns or beams not exceeding 50% of the existing building
so let's say you add an attic, the increase of GFA cannot be more than 50%.
4. Changes or replacement of the entire roofing, does not involve an additional storey
5. Extending the wet kitchen on the ground floor or adding another en-suite room on the 2nd floor is also considered an A&A job.
So now, what will be the cost of doing an A&A? will it be very costly?
Let's take a look at the various breakdown cost for doing A&A work on your landed house.
Construction Cost | S$1M or Less |
Procession Fees | S$10,000 |
Architect Fees | S$30,000 |
Structural Engineer Fees | S$20,000 |
Mechanical & Electrical Engineer Fees | S$5,000 |
I hope the above comparison can give you a better idea of which choice to select.
Lastly, appreciate that you have followed this article till the end and if the contents of this article do benefit your friend, please forward and shared with them.
In the event that you need assistance in your landed house, whether to sell, lease, or buy, I am always contactable at 94896105.
Peter Tan Choon Guan,
The Real Estate Guy.
Real Estate Trainer, Coach & Mentor
Associate District Director and Project IC with Huttons Group.
Since 1995, he has been providing professional consulting services to clients in Singapore and beyond. From strategic planning to innovative solutions, his focus is always on building an efficient and results-driven relationship.
He will work with you to create a customized plan of action for yourself or your organization.
Peter joined the Real Estate Industry in the year 1995 as a part-timer while running his own business. He decided to close down his business in 2013 and become a full-time Real Estate Consultant, Property Wealth Planner.
He start to invest in property himself with the Knowledge he acquired and provides consultation and planning for his clients. To date, he has assisted more than 350 property investors to build their wealth in property investment.
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