2008 Development Baseline Definition – A Guide for the Property Industry

PURPOSE

TABLE OF CONTENTS

1 INTRODUCTION

2 WHAT IS THE CHANGE TO DEVELOPMENT BASELINE

- Why the need for the change

3 THE SAFEGUARDING OF HISTORICAL BASELINE

- Situations where safeguarding applies
- Situation where safeguarding will not apply
ƒ Sites with approved value higher than the historical baseline
value
ƒ Government land sales sites and land leased to statutory boards

4 HOW TO DETERMINE THE SAFEGUARDED HISTORICAL

BASELINE
- Determining the Master Plan 2003 value
ƒ Mixed use developments
ƒ Table 1 - Landuse zones intended for mixed-use
developments
ƒ Single use developments
ƒ Table 2 – Landuse zones intended for single-use
developments

ƒ Sites without Gross Plot Ratio in MP 2003

ƒ Table 3 – Sites zoned Residential within Landed Housing
Areas
ƒ Table 4 – Sites within Residential Historic Districts of Blair
Plain, Cairnhill & Emerald Hill
ƒ Table 5 – Sites zoned Commercial, Commercial &
Residential, Residential with Commercial at 1st storey within
Historic Districts of Boat Quay, Chinatown, Kampong Glam,
Little India and Jalan Besar (part)

5 STEP BY STEP GUIDE TO DETERMINE THE DEVELOPMENT

BASELINE AND DEVELOPMENT CHARGE COMPUTATION
- Step 1 : Determine development baseline
- Step 2 : Determine development ceiling
- Step 3 : Determine development charge

6. APPENDICES
Appendix 1
Examples on how to compute the safeguarded historical baseline
- Example 1 – Historical MP use and intensity being fully
safeguarded when the MP 1958, 1980 and 2003 are for the same
land use
2008 Development Baseline Definition – A Guide for the Property Industry

- Example 2 - Historical MP use and intensity being fully safeguarded

when the MP 1958, 1980 and 2003 are for different land uses
- Example 3 - Historical baseline capped by the MP 2003 use and
intensity when the MP 1958, 1980 and 2003 are for the same land
use
- Example 4 - Historical baseline capped by the MP 2003 use and
intensity when the MP 1958, 1980 and 2003 are for different land
uses

Appendix 2
Computation of MP 2003 value for land zoned for a mixed use
development
- Example 5 - Illustration on how to compute the MP 2003 value for a
site zoned for mixed use development
2008 DEVELOPMENT BASELINE DEFINITION

A GUIDE FOR THE PROPERTY INDUSTRY

Purpose of this guide

This guide explains the change in the definition of development baseline,
which takes effect on 1 January 2008 for development applications received
on or after this date. It also provides illustrated examples showing the
computation of the safeguarded historical baseline. If you wish to seek further
clarification, please call our DCD Customer Service Hotline at Tel: 6223 4811
or e-mail us at [email protected]. Alternatively, you can make a request to
enquire the development baseline of a site for a fee.

The principles and illustrations used in the guide are not exhaustive in
covering all possible scenarios. The Competent Authority reserves the right to
decide on matters pertaining to the safeguarding of the historical baseline.

This guide is subject to revision from time to time. Nothing herein shall be
construed to exempt the person submitting an application or any plans from
otherwise complying with the provisions of the Planning Act (Cap. 232) and
any rules made thereunder or any other written law for the time being in force.

While every endeavour is made to ensure that the information provided is

correct, the Competent Authority and the Urban Redevelopment Authority
disclaim all liability for any damage or loss that may be caused as a result of
any error or omission.

Urban Redevelopment Authority

December 2007
2008 Development Baseline Definition – A Guide for the Property Industry

1 INTRODUCTION

1.1 The amendment to the definition of development baseline in the

Planning Act was approved and announced in 2003. Under the new
definition, the value of the approved development1 of the site forms the
development baseline. Historical baseline values in Master Plan 1958
& 1980 will no longer form part of the definition of development
baseline. The implementation was deferred to give advance notice to
landowners.

1.2 The revised baseline definition will take effect on 1 January 2008 for all
development applications received on or after this date. However, to
mitigate the impact on landowners who might not have yet carried out
development on their land, URA has safeguarded the historical
baseline in Master Plan 1958 & 1980 applicable to a site under the
current legal provisions. The safeguarding is capped at the maximum
use and intensity allowed under Master Plan 2003. The difference
between the development baseline and the safeguarded baseline will
be granted in the form of development charge exemption, used to
offset the development charge payable for a development proposal.

1.3 The guide explains the concept of the change and sets out the details
that will prepare the property industry for the change.

1.4 For specific clarifications, you may wish to refer to the Frequently
Asked Questions (FAQs) available in our website at www.ura.gov.sg.
You can also put in a request for Development Baseline Enquiry for a
fee to ascertain the development baseline for a specific site.

Navigation Guide
FAQs
http://www.ura.gov.sg > Developer & Building Professionals > Development Control Matters >
Other Information > 2008 Revised Development Baseline Definition

Baseline Enquiry
http://www.ura.gov.sg > Developer & Building Professionals > Download Planning Application
form > Forms For Other DC services >DC 21.

Back to contents page

2008 Development Baseline Definition – A Guide for the Property Industry

2 WHAT IS THE CHANGE TO DEVELOPMENT BASELINE

2.1 The development baseline of a site is refers to the base value above
which the development charge is payable. A development proposal on
a site that exceeds the value of the development baseline will attract
development charge. Prior to the change, the highest value derived
from the historical baseline values in Master Plan (MP) 1958, 1980 or
the approved development for which development charge was paid,
exempted, or not required to be paid, forms the development baseline.

Figure 1
Previously, the highest value forms the
development baseline in the Planning Act Development
Ceiling
Development charge
payable beyond the
Development development
Baseline baseline

Highest value forms

the development
baseline

MP 58 MP 80 Approved MP 03
value value value value

2.2 Come 1 January 2008, references to historical baseline values in MP

1958 and 1980 are removed from the definition of development
baseline in the Planning Act. The new baseline definition will apply to
development applications received on or after 1 January 2008.

Development
Figure 2 Ceiling
Approved value forms the development
baseline in the Planning Act wef 1 Jan 08 Development charge
payable beyond the
development
baseline

Revised
Development
Baseline

MP 58 MP 80 Approved MP 03
value value value value

2.3 The removal of the reference to MP 1958 & 1980 will affect landowners
with sites with MP1958 & 1980 higher than the approved development
baseline. To mitigate the impact on these landowners, when the
2008 Development Baseline Definition – A Guide for the Property Industry

changes were announced in 2003, 4 years of advance notice was

given to landowners to adjust to the revised baseline. The
implementation of the revised baseline definition was deferred. During
the advance notice period ending 31 December 2007, landowners can
develop their lands based on current MP (i.e. MP 2003) and make use
of their historical baseline for computing Development Charge.

2.4 For private landowners who have no intention or are unable to develop
their lands before 2008, URA will safeguard the historical baseline in
MP 1958 & 1980 for their site under the current legal provision (see
Figure 3). This safeguarding of the historical baseline is capped at the
use and intensity allowed under MP 2003, if the MP 1958 or 1980
baseline value is higher than the MP 2003 (see Figure 4). Development
proposals on these lands after 1 January 2008 will be exempted from
development charge for the difference between the safeguarded
historical baseline and the revised development baseline. With the
safeguarding of historical baseline, the impact of the redefinition of
baseline will be minimal. Private landowners developing in accordance
with the development potential in the current MP (i.e. MP 2003) will not
be worse off.

Development
Figure 3 Ceiling
MP 1958/1980 value < than MP 2003 value
Development charge
payable beyond the
safeguarded
historical baseline

Development charge
Revised exemption granted for
Development difference between
Baseline development baseline
and safeguarded
historical baseline
Safeguarded
historical baseline

MP 58 MP 80 Approved MP 03
value value value value

Figure 4
Development charge
MP 1958/1980 value > than MP 2003 value payable beyond the
safeguarded
historical baseline, if
Development MP parameters are
Ceiling revised
Development charge
Revised exemption granted
Development for difference
Baseline between
safeguarded
historical baseline

Safeguarded
historical baseline

MP 58 MP 80 Approved MP 03
value value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Why the need for the change

2.5 When planning permission is granted for a development to intensify the

use of a site (e.g. from 1 house to 2 houses), the value of the land is
enhanced. Development charge is a tax meant to share the
enhancement gains due to the action of the State to allow a higher
value development for the site. Under the old baseline definition, the
highest value derived from the historical baseline values in Master Plan
(MP) 1958, 1980 or the approved development1 forms the development
baseline.

2.6 The MP 1958 & 1980 were included in the baseline definition due to
historical reasons and it has created an anomaly where some
landowners do not need to pay DC due to high historical baseline in
MP 1958 or 1980, while other land owners will need to pay DC for
planning approvals granted on their land.

2.7 The amendment refines the tax system to better reflect the intention of
the DC as a tax on land value enhancement. With the revision, the
value of the approved development becomes the development
baseline. The intention is for enhancement in value above the
approved development to be subjected to DC. To mitigate the changes
on the definition of Development Baseline, the value of the historical
MP of 1958 and 1980 will be safeguarded up to the value of MP 2003.
This safeguarding will bring such vacant or under-developed lands to
be on par with those lands which are developed according to the MP
2003. The safeguarding is for the purpose of determining the DC
exemption in future development applications. Therefore, there is no
need for landowners to rush and redevelop their sites before 1 Jan
2008.

2.8 With the safeguarding, DC will only be payable if the value of the
proposed development exceeds both the approved use and the
safeguarded historical baseline (see Figures 3 & 4). The safeguarding
seeks to balance between the policy intent to remove the anomalies of
the old system and to minimize any adverse impact on land owners..

2.9 The change will remove the excessive tax base enjoyed by owners of
sites with high historical baseline. This will result in a fairer and more
effective taxation system and allow the State to have a more equitable
share in the enhancement in land value arising from the alteration of
the Master Plan for sites in the longer term.

Back to contents page

1
Approved development for which development charge was paid, exempted, or not required
to be paid.
2008 Development Baseline Definition – A Guide for the Property Industry

3 THE SAFEGUARDING OF HISTORICAL BASELINE

Situations where the safeguarding is applicable

3.1 The safeguarding of the historical baseline from MP 1958 and 1980
only applies for sites for which:

Value of approved Use < Value of MP 1958, 1980

(less than) and 2003

Example Example
Approved use = Residential at 0.5 MP 58/80 = Residential at 1.03
GPR GPR
MP 03 = Residential at 1.4 GPR

Situations where the safeguarding is NOT applicable

Sites with approved value higher than the historical baseline value
3.2 The safeguarding of the historical baseline is not applicable if the
historical baseline has been fully utilised and the approved use is of a
higher value (see Figure 5)

Value of approved Use > or = Value of MP 1958 and

(greater 1980
Example than or
Approved use = Residential at 1.4 Example
GPR
equal to)
MP 58/80 = Residential at 1.03
GPR

Figure 5
Approved value > MP 1958/1980 baseline value
Development
Revised Ceiling Development charge
Development payable beyond the
Baseline development
baseline

Safeguarded
historical baseline
value has been fully
utilised and hence
no longer applicable.

MP 58 MP 80 Approved MP 03
value value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Government Land Sales sites and land leased to Statutory Boards

3.3 The historical baseline value of Government Land Sale site and state
land leased to Statutory Boards (SB), regardless whether the leasehold
interest is still held by the SB or its corporatised entities, are not
safeguarded because such lands were sold or alienated based on
specific terms and conditions. The initial land premium paid for these
lands were based on the specific terms and conditions and would not
have taken the historical baseline into consideration. For such sites
under the DC system, DC will be collected for enhancement beyond
the terms of the sale/alienation expressed in gross floor area or the
approved gross floor area of the existing development. The Table
below shows examples of land leased to existing SBs for specific terms
and conditions. For other leases which are not covered in the Table,
the terms and conditions of use would have be established on a case-
by-case basis.

Examples of common terms and conditions for land leased or agreed to be leased by
the State to the existing statutory body
Purpose for use or development of land leased or agreed to Gross Plot Ratio
be leased by the State to the existing statutory body
Residential (Public Housing) 2.8
Industry 2.5
Warehouse 2.5
Town Centre 3.0*
Neighbourhood Centre 3.0*
Port or port related uses 1.0
Airport or aviation related uses 1.0
*Comprising of Commercial GPR 1.2; Residential GPR 1.8

9
2008 Development Baseline Definition – A Guide for the Property Industry

4 HOW TO DETERMINE SAFEGUARDED HISTORICAL MASTER

PLAN BASELINE

4.1 To determine the safeguarded historical baseline, you will need to

compute the MP 1958, 1980 and 2003 values using September 2003
DC rates and compare among the 3 values. The development charge
rates were used as they were prevailing as at the time of the
announcement of the change in 2003. For sites that have undergone
two or more alterations to the Master Plan before 1982, the MP 1958
and 1980 values would be subject to other legal provisions in the
Planning Act and hence might not form the historical baseline of the
site.

4.2 If the MP 1958 and 1980 value of a site is below or same as the MP
2003 value, the use and intensity in the historical MP will be
safeguarded for all private land 2 (see Figure 6). Most land will fall
within this category and will not be affected by the redefinition of the
Development Baseline.

Value of MP 1958 & 1980 < or = Value of MP 2003 Value

(less than
Example or equal Example
MP 58 & 80 = Commercial at to) MP 2003 = Commercial at GPR
GPR 4.2 5.6
Safeguard use & intensity in historical MP
= Commercial at 4.2 GPR

Figure 6
MP 1958/1980 baseline value < than MP 2003 value
computed based on Sep 03 DC rates

Safeguard use and

intensity of historical
MP

MP 58 MP 80 MP 03
value value value

See examples 1 & 2 in Appendix 1 showing how to derive the

safeguarded historical baseline in the form of use and intensity of
historical MP

2
The safeguarding of the MP 1958 and 1980 value does not apply to sites which were sold
through the Government Land Sales (GLS) Programme and sites directly alienated to
Statutory Boards.
2008 Development Baseline Definition – A Guide for the Property Industry

4.3 If the MP 1958 and 1980 value of a site is above the MP 2003 value,
the use and intensity in the MP 2003 will be safeguarded instead (see
Figure 7).

Value of MP 1958 & 1980 > Value of MP 2003

(greater
Example than) Example
MP 58 & 80 = Residential at MP 2003 = Industry at GPR
EPR 2.77 2.5

Safeguard use and intensity of MP 2003

= Industry at 2.5 GPR

Figure 7
MP 1958/1980 baseline value > than MP 2003 value
computed based on Sep 03 DC rates

Safeguard use
and intensity of
M P 03

MP 58 MP 80 MP 03
value value value

See examples 3 & 4 in Appendix 1 showing how to derive the

safeguarded historical baseline expressed in the form of use and
intensity of MP 2003
.

Navigation Guide
Sep 2003 Development Charge Sector Map and Rates
http://www.ura.gov.sg > Developer & Building Professionals > Development Control Matters >
Maps > Development Charge Sector Map and Rates > Sep 2003
or
http://www.ura.gov.sg/dc/devcharge/dc_rates0903.html
2008 Development Baseline Definition – A Guide for the Property Industry

Determining the MP 2003 value

4.4 The MP 2003 value is the value derived from the permissible land use
and gross plot ratio (GPR) for a site in the MP 2003 gazetted as at 10
Dec 2003. It excludes incentive schemes such as the balcony incentive,
which are allowed over and above the MP 2003 GPR. The September
2003 rates are to be used to determine the MP 2003 value.

Mixed Use Developments

4.5 To compute the MP 2003 value for land use zones3 intended for mixed
use developments (e.g. Commercial & Residential zone), the
percentage mix of uses allowed for such zones is as shown in table 1.
For the other landuse zones in table 2, the MP 2003 value will be
computed solely based on the use intended for the zone.

Table 1 – Land use zones intended for mixed use developments

S/No. Master Plan 2003 Land % of GFA adopted for Use Group
use Zone different uses in DC rates
table
1 Residential with 80% for Residential B2
Commercial at 1st Storey 20% for Commercial A
2 Commercial & Residential 60% for Residential B2
40% for Commercial A
3 Hotel 60% for Hotel C
40% for Commercial A
4 White 100% for Commercial A

5 Business Park 85% for Business Park D

15% for Commercial A
6 Business Park – White 60% for Business Park D
zoned BP-W[40] 40% for Commercial A
7 Business 1 – White4 83.3% for Business D
zoned 3.0[B-2.5]W 16.7% for Commercial A
8 Residential / Institution 100% for Residential B2

Example on the computation of MP 2003 value for a site zoned

Commercial & Residential is in Appendix 2.

3
The gross plot ratio (GPR) for these land use zones can either be found in MP 2003 in
URA’s website or see para 4.6 for details.
4
There are no sites zoned Business 2 – White in the Master Plan 2003 as at 10 Dec 2003.
2008 Development Baseline Definition – A Guide for the Property Industry

Single Use Developments

4.6 For the other landuse zones in table 2, the MP 2003 value will be
computed solely based on the use intended for the zone.

Table 2 – Landuse zones intended for single use developments

Master Plan 2003 Land use zones without any Use Group in DC
provision for use quantum split rates table
Commercial A
Sports & Recreation A
Transport Facilities (With approval for petrol A
station or petrol filling station as at 10 Dec 03)
Residential (Landed Housing Area) B1
Residential (Outside Landed Housing Area) B2
Health & Medical Care C
Business 1 D
Business 2 D
Transport Facilities (Without approval for petrol D
station or petrol filling station as at 10 Dec 03)
Port / Airport D
Utility D
Special Use D
Rapid Transit D
Educational Institution E
Place of Worship E
Civic & Community Institutions E
Open Space F
Park F
Beach Area F
Agriculture G
Road H
Waterbody H
Cemetery H

Sites without Gross Plot Ratio (GPR) in MP 2003

5 Under MP 2003, most sites have been assigned gross plot ratio (GPR).
However, for minority of the sites without GPR, the Competent
Authority will determine and assign a site-specific GPR to derive the
2008 Development Baseline Definition – A Guide for the Property Industry

safeguarded baseline upon an application to determine the

development baseline for a site. The Competent Authority will use the
reference GPR in Tables 3 to 5 (with accompanying plans) to
determine the safeguarded historical baseline for sites within
designated Landed Housing Areas and for Conservation Areas.

5.1 The reference GPRs (in Tables 3 to 5) and site-specific GPRs are not
be taken as the absolute development entitlement for specific sites.
Unique constraints affecting a site will have an impact on the actual
development intensity achievable. The development potential of a site
is guided by the land use and intensity of the prevailing Master Plan,
development control parameters and any relevant restrictions on the
land that are applicable as at the point a development application is
received.

Table 3 – Sites zoned Residential within Landed Housing Areas

Landed Housing Area Reference GPR

Mixed Landed Area & 1.4

Semi-Detached Area

Bungalow Area 1.2

Good Class Bungalow Area 1.0

Table 4- Sites within Residential Historic Districts of Blair Plain,

Cairnhill & Emerald Hill

Historic Residential Conservation Reference GPR

District
Blair Plain 2.77

See plan RHD1

Cairnhill 2.08

See plan RHD2

Emerald Hill Part 2.77/ Part 2.08

See plan RHD3

2008 Development Baseline Definition – A Guide for the Property Industry

Table 5 - Sites zoned Commercial, Commercial & Residential and

Residential with 1st storey Commercial within Historic Districts of :

Boat Quay (see plan HC1);

Chinatown – Kreta Ayer (see plan HC2);
Chinatown – Telok Ayer (see plan HC3);
Chinatown – Bukit Pasoh(see plan HC4);
Chinatown – Tanjong Pagar (see plan HC5);
Kampong Glam (see plan HC6);
Little India (see plan HC7); and
Jalan Besar (part) (see plan HC8)

Storey height of main building* Reference GPR

2-storey 2.8
3-storey 3.5
4-storey 4.2
5-storey 4.9
6-storey 5.6
*The storey height of the main building for the purpose of prescribing reference gross
plot ratio shall be based on the original storey height of the existing building fronting
the main road when it was first built. Subsequent approved additional storey or
insertion of floor, if any, shall not be construed as part of the original building storey
height. The reference GPR will apply to the whole site.
Back to contents page
2008 Development Baseline Definition – A Guide for the Property Industry

5 STEP BY STEP GUIDE TO DETERMINE THE DEVELOPMENT BASELINE

AND DEVELOPMENT CHARGE COMPUTATION

5.1 Development charge is payable when the development ceiling exceeds the
development baseline, i.e.

Development Charge Payable

= Development Ceiling – Development Baseline

Step 1 – Determine Development Baseline

5.2 The development baseline of a site refers to the base value above which the
development charge is payable.

Step 1a: Determine the approved floor area and use of the site

5.3 If you have records on the approvals for the site, you may refer to the Grant of
Written Permission stating the approved gross floor area (GFA) under the current
gross floor area definition.

5.4 For developments approved prior to 1989 based on nett floor area computation or
density computation, you will need to update the approved floor area based on
the 1993 definition.

5.5 You can make a search on the past decisions for the site to help establish the
approved floor area and use for a site.
Navigation Guide
http://www.ura.gov.sg > eServices >Development Control > Search Electronic Development Register

Step 1b: Determine if the safeguarding of the historical baseline applies

Identify MP 1958, MP 1980 and approved use of a site. Compute
the MP 1958, 1980 & approved values using the Material DC rates.

Scenario 1: If the value of the approved use is higher than or same as that for
the MP 1958 and 1980 (taking the higher value between the MP
1958 and 1980 values), then the development baseline of a site will
be the approved use. As the MP 1958 and 1980 had previously
been fully utilized, safeguarding of the MP 1958 and 1980 does
not apply. Proceed to Step 1d. 2008 Development Baseline
Definition – A Guide for the Property Industry
2008 Development Baseline Definition – A Guide for the Property Industry

Scenario 2: For a site that has not undergone rezoning to the MP arising from
development application

If the value of the approved use is lower than that of MP 1958 and
1980, safeguarding of the historical baseline will apply.
Proceed to Step 1c

Scenario 3: For a site that has undergone rezoning to the MP arising from
development application

The development baseline of the site is likely to be the approved

use 5 . Safeguarding of the historical baseline will not apply.
Proceed to Step 1d

5.6 The set of development charge rates to be used will depend on the “Material
date”. The “Material date” refers to the date of Provisional Permission (PP), or
Date of 2nd or subsequent extension of PP. You may obtain information on the
DC rates, use groups and sector maps from our website.
Navigation Guide
http://www.ura.gov.sg > Development Control > Overview > Maps > Development Charge Sector Maps
& Rates

Step 1c: Determine the safeguarded historical baseline, when safeguarding

applies.

Compute MP 1958, 1980 & 2003 values using the September 2003
DC rates.

Scenario 1: If the value of the MP 1958 and 1980 is the same as or lower than
the MP 2003 value, the use and intensity in the MP 1958 or 1980
giving the higher value will be safeguarded.

Scenario 2 : If the value of the MP 1958 and 1980 is higher than the MP 2003
value, the MP 2003 use and intensity will be safeguarded.

5.7 You may obtain information on the Sep 2003 DC rates corresponding to the
respective use groups and sector maps from our website.
Navigation Guide
http://www.ura.gov.sg > Development Control > Overview > Maps > Development Charge Sector Maps
& Rates Sep 2003

or

http://www.ura.gov.sg/dc/devcharge/dc_rates0903.html

                                                            
5
 You are advised to put in a request to enquire the development baseline for a site with a complex
rezoning history. 2008 Development Baseline Definition – A Guide for the Property Industry 
2008 Development Baseline Definition – A Guide for the Property Industry

Step 1d: Determine the development baseline

Compute the respective value using the Material DC rates

Scenario 1: Deriving development baseline value from Step 1b

Development Baseline = Approved gross floor area x Material DC rate for the
relevant use group and sector where the site is located

Scenario 2: Deriving baseline value (including safeguarded historical value

exempted from development charge) from Step 1c

Development Charge Baseline = Safeguarded gross floor area x Material DC rate

for the relevant use group and sector where the site is located

5.8 The set of development charge rates to be used will depend on the “Material
date”. The “Material date” refers to the date of Provisional Permission (PP), or
Date of 2nd or subsequent extension of PP. You may obtain information on the
DC rates, use groups and sector maps from our website.
Navigation Guide
http://www.ura.gov.sg > Development Control > Overview > Maps > Development Charge Sector Maps
& Rates.

Step 2 - Determine Development Ceiling

5.9 Development ceiling is the value of the development proposed for a site and
allowed by URA. You can work out the development ceiling by using the following
formula:

Development Ceiling =
Proposed Gross Floor Area x Material DC rate for the relevant use group
and sector where the site is located

Step 3 - Determine development charge

Development Charge Payable

= Development Ceiling (derived in Step 2) – Development Baseline
(including safeguarded historical value exempted from development charge
as derived in Step 1d)
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-1

Examples on how to compute the safeguarded historical baseline

Example 1 –
To show historical MP use and intensity being fully safeguarded when
the MP 1958, 1980 and 2003 are for the same land use

Site information
Site Area (SA): 4,000 sqm

MP 1958: Residential @ max density 150 persons per acre (ppa)

(Equivalent plot ratio (EPR): 150 x 2.471 x 0.0056 = 2.0756)
Gross Floor Area (GFA) = EPR 2.0756 x SA 4,000 sqm
= 8,302.40 sqm

MP 1980: Residential @ max density 370 persons per hectare (ppha)

(Equivalent plot ratio (EPR) : 370 x 0.0056 = 2.0720)
Gross Floor Area (GFA) = EPR 2.0720 x SA 4,000 sqm
= 8,288.00 sqm

MP 2003: Residential @ gross plot ratio (GPR) 2.1

Gross Floor Area (GFA) = GPR 2.1 x SA 4,000 sqm
= 8,400.00 sqm

Sep 2003 DC rates Geographical sector: 103

Group B2 (Residential (non-landed)) $ 1,350 psm

Computation of safeguarded historical baseline

i) Value derived from MP 1958 :

= 8,302.40 sqm x $1,350psm = $11,208,240

ii) Value derived from MP 1980 :

= 8,288.00 sqm x $1,350psm = $11,188,800

iii) The highest of the MP 1958 and 1980 is used. In this case, the MP
1958 value giving a higher value forms the historical MP value.

MP MP 1958 MP 1980
Value @Sep 03 rates $11,208,240 $11,188,800

iv) Value derived from MP 2003:

= 8,400 sqm x $1,350psm = $11,340,000
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-2

v) The historical MP value is lower than the MP 2003 value. The

historical baseline safeguarded is based on Residential use at 8,302.40
sqm of GFA.

MP MP 1958 MP 2003
Value @Sep 03 rates $11,208,240 $11,340,000
Use & Intensity Residential Residential
GFA: 8,302.40 sqm GFA: 8,400 sqm

Figure 8
- Example 1
Step iii – Compare higher of
MP 58 & 80
Step v – Compare lower of
Step iii & MP 03

Step i Step ii Step iv Safeguarded

historical MP58 use
and intensity

MP 58 MP 80 MP 03
value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-3
Example 2
To show the historical MP use and intensity being fully safeguarded
when MP 1958, 1980 and 2003 are for different land uses.

Site information
Site Area (SA): 4,000 sqm

MP 1958: Residential @ max density 75 persons per acre (ppa)

(Equivalent plot ratio (EPR): 75 x 2.471 x 0.0056 = 1.0378)
Gross Floor Area (GFA) = EPR 1.0378 x SA 4,000 sqm
= 4,151.20 sqm

MP 1980: Residential @ max density 185 persons per hectare (ppha)

(Equivalent plot ratio (EPR) : 185 x 0.0056 = 1.036)
Gross Floor Area (GFA) = EPR 1.036 x SA 4,000 sqm
= 4,144.00 sqm

MP 2003: Residential with 1st storey Commercial @ gross plot ratio

(GPR) 2.0
Gross Floor Area (GFA) = GPR 2.0 x SA 4,000 sqm
= 8,000 sqm
Residential GFA = 8,000 sqm x 80% = 6,400 sqm
Commercial GFA = 8,000 sqm x 20% = 1,600 sqm
(Refer to Table 1 for % of GFA adopted for different uses)

Sep 2003 DC rates Geographical sector: 104

Group A (Commercial) $1,400 psm
Group B1 (Residential (landed dwelling-house))6 $ 1,150 psm
Group B2 (Residential (non-landed)) $ 1,350 psm

Computation of safeguarded historical baseline

i) Value derived from MP 1958 :
= 4,151.20 sqm x $1,150 psm = $4,773,880

ii) Value derived from MP 1980 :

= 4,144.00 sqm x $1,150 psm = $4,765,600

iii) The highest of the MP 1958 and 1980 is used. In this case, the MP
1958 value giving a the higher value forms the historical MP value.

MP MP 1958 MP 1980
Value @Sep 03 rates $4,773,880 $4,765,600

6
Use Group B1 rates are applicable for determining the historical baseline value for:
Land zoned Residential at 75 persons per acre or less in MP 1958; and
Land zoned Residential at 185 persons per hectare or less in MP 1980.
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-4

iv) Value derived from MP 2003 :

Commercial value = 1,600 sqm x $1,400
= $2,240,000

Residential value = 6,400 sqm x $1,350

= $8,640,000

MP 2003 value = Commercial value + Residential value

= $2,240,000+ $8,640,000
= $10,880,000

v) The historical MP value is lower than the MP 2003 value. The

historical baseline safeguarded is based on Residential use at 4,151.20
sqm of GFA.

MP MP 1958 MP 2003
Value @Sep 03 rates $4,773,880 $10,880,000
Use & Intensity Residential Commercial
GFA: 4,151.20 sqm GFA: 1,600 sqm
Residential
GFA: 6,400 sqm

Figure 9
- Example 2
Step iii – Compare higher of
MP 58 & 80
Step v – Compare lower of
Step iii & MP 03

Step i Step ii Step iv Safeguarded

historical MP58 use
and intensity

MP 58 MP 80 MP 03
value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-5

Example 3 –
To show the safeguarding of the historical baseline capped by the MP
2003 use and intensity when the MP 1958, 1980 and 2003 are for the
same land use.

Site information
Site Area (SA): 4,000 sqm

MP 1958: Residential @ max density 200 persons per acre (ppa)

(Equivalent plot ratio (EPR): 200 x 2.471 x 0.0056 = 2.7675)
Gross Floor Area (GFA) = EPR 2.7675 x SA 4,000 sqm
= 11,070 sqm

MP 1980: Residential @ max density 495 persons per hectare (ppha)

(Equivalent plot ratio (EPR) : 495 x 0.0056 = 2.7720)
Gross Floor Area (GFA) = EPR 2.7720 x SA 4,000 sqm
= 11,088 sqm

MP 2003: Residential @ gross plot ratio (GPR) 2.1

Gross Floor Area (GFA) = GPR 2.1 x SA 4,000 sqm
= 8,400 sqm

Sep 2003 DC rates Geographical sector: 103

Group B2 (Residential (non-landed)) $ 1,350 psm

Computation of safeguarded historical baseline

i) Value derived from MP 1958 :
= 11,070 sqm x $1,350psm = $14,944,500

ii) Value derived from MP 1980 :

= 11,088 sqm x $1,350psm = $14,968,800

iii) The highest of the MP1958 and 1980 is used. In this case, the MP
1980 value giving a higher value forms the historical MP value.

MP MP 1958 MP 1980
Value @Sep 03 rates $14,944,500 $14,968,800
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-6

iv) Value derived from MP 2003 :

= 8,400 sqm x $1,350psm = $11,340,000

v) Since the safeguarding is capped at the MP 2003 use and intensity,

the historical baseline safeguarded is based on Residential use at
8,400 sqm of GFA.

MP MP 1980 MP 2003
Value @Sep 03 rates $14,968,800 $11,340,000
Use & Intensity Residential Residential
GFA: 11,088 sqm GFA: 8,400 sqm

Figure 10
- Example 3 Step iii – Compare higher of
MP 58 & 80

Step v – Compare lower of

Step iii & MP 03

Step i Step ii Step iv Safeguarded MP 03

use and intensity

MP 58 MP 80 MP 03
value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-7

Example 4
To show the safeguarding of the historical baseline capped by the MP
2003 use and intensity when the MP 1958, 1980 and 2003 are for
different landuses.

Site information
Site Area (SA): 4,000 sqm

MP 1958: Residential @ max density 75 persons per acre (ppa)

(Equivalent plot ratio (EPR): 75 x 2.471 x 0.0056 = 1.0378)
Gross Floor Area (GFA) = EPR 1.0378 x SA 4,000 sqm
= 4,151.20 sqm

MP 1980: Residential @ max density 185 persons per hectare (ppha)

(Equivalent plot ratio (EPR) : 185 x 0.0056 = 1.036)
Gross Floor Area (GFA) = EPR 1.036 x SA 4,000 sqm
= 4,144.00 sqm

MP 2003: Business 1 @ gross plot ratio (GPR) 2.5

Gross Floor Area (GFA) = GPR 2.5 x SA 4,000 sqm
= 10,000 sqm

Sep 2003 DC rates Geographical sector: 104

Group B1 (Residential (landed dwelling-house))7 $ 1,150 psm
Group B2 (Residential (non-landed)) $ 1,350 psm
Group D (Industrial) $425 psm

Computation of safeguarded historical baseline

i) Value derived from MP 1958 :
= 4,151.20 sqm x $1,150 psm = $4,773,880

ii) Value derived from MP 1980 :

= 4,144.00 sqm x $1,150 psm = $4,765,600

iii) The highest of the MP1958 and 1980 is used. In this case, the MP
1958 value giving the higher value forms the historical MP value.

MP MP 1958 MP 1980
Value @Sep 03 rates $4,773,880 $4,765,600

7
Use Group B1 rates are applicable for determining the historical baseline value for:
Land zoned Residential at 75 persons per acre or less in MP 1958; and
Land zoned Residential at 185 persons per hectare or less in MP 1980.
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 1-8

iv) Value derived from MP 2003 :

= 10,000 sqm x $425 psm = $4,250,000

v) Since the safeguarding is capped at the MP 2003 use and intensity,

the historical baseline safeguarded is based on Industry use at 10,000
sqm of GFA.

MP MP 1958 MP 2003
Value @Sep 03 rates $4,773,880 $4,250,000
Use & Intensity Residential Industrial
GFA: 4,151.20 sqm GFA: 10,000 sqm

Figure 11
- Example 4 Step iii – Compare higher of
MP 58 & 80

Step v – Compare lower of

Step iii & MP 03

Step i Step ii Step iv Safeguarded MP03

use and intensity

MP 58 MP 80 MP 03
value value value
2008 Development Baseline Definition – A Guide for the Property Industry

Appendix 2-1

Example 5 –
Illustration on how to compute the MP 2003 value for a site zoned for
mixed-use development

Site information
Site Area (SA): 4,000 sqm

MP 2003: Commercial & Residential @ gross plot ratio (GPR) 3.0

Gross Floor Area (GFA) = GPR 3.0 x SA 4,000 sqm
= 12,000 sqm
Commercial GFA = 12,000 sqm x 40% = 4,800 sqm
Residential GFA = 12,000 sqm x 60% = 7,200 sqm
(Refer to Table 1 for % of GFA adopted for different uses)

Sep 2003 DC rates Geographical sector: 103

Group A (Commercial) $ 1,400 psm
Group B2 (Residential (non-landed)) $ 1,350 psm

Computation
Value derived from MP 2003 provision:
Commercial value = 4,800 sqm x $1,400
= $6,720,000

Residential value = 7,200 sqm x $1,350

= $9,720,000

MP 2003 value = Commercial value + Residential value

= $6,720,000 + $9,720,000
= $16,440,000

Back to contents page