Plot Ratio

From Financial Literacy Wiki

Plot ratio refers to the gross floor area of a building divided by the site area. Meaning, the higher the plot ratio, the more gross area can be allocated to the site.

Higher plot ratio is good news to developers because it tells developers how much they can built on the site. This is of interest to those keen to sell their homes en bloc. A site's value could be raised if the current plot ratio is lower than the designated plot ratio of the site because developer can build and sell more homes.

In Singapore, the Government reviews the plot ratio in its Master Plans every five years.