Calculation of PSF base on Built-in/Land Area

Hi All,

We are starting to consider buying our first lander property and one topic that kept coming up is the calculation of psf.

Base on our initial conversation with a couple of mortgage specialist, they seem to calculate psf base on the land area and were very vague as to how the built-in area contributes to the value of the property.

However, most agents and home owners will happily use the built in or land area whichever is greater.

So as an example, a terrace with built-in 3000 and land area 2000 going for say $2M, it seems the banks will value the prop as $1000psf while the agents will say its $666psf.

Can anyone shed some light how we should go about calculating psf? How does URA and the government calculate psf?

Thanks.

For landed property, it is the norm to take the land area. psf is based on land title deed, area of land.

Those that talk about build-in is trying to cover up for the high psf price. The bank will just do a valuation based on a number of factors, including land size, renovation done and the build up.

Does the current financial crisis affecting the value of the house? It doesn't seem to be like that.