What does it mean to say a property has a high development baseline?

When a property has a "high development baseline," it means that the approved development on the site already utilizes a significant portion of the allowable gross floor area (GFA) as defined by the Urban Redevelopment Authority (URA). Here are the key points:

- Approved Use and Intensity: The development baseline is the value of the approved development based on its approved use and intensity. If the existing development is already close to or at the maximum allowable GFA, there is little room for further intensification.

- No Development Charge: In such cases, if a new development or extension is proposed and it does not exceed the existing approved GFA, no additional development charge (also known as land betterment charge) is payable. This is because the development ceiling (the value of the proposed development) is not significantly higher than the development baseline (the value of the existing approved development).

- Impact on Future Developments: A high development baseline indicates that the site is already highly utilized, which can limit the potential for future developments that might require additional GFA. This can be beneficial for buyers as it reduces the likelihood of significant changes or new constructions in the immediate vicinity that could affect the property's value or view.