Residents of the four Housing and Development Board (HDB) blocks in Ang Mo Kio who were selected for the Selective En Bloc Redevelopment Scheme (Sers) in April will receive compensation that is about 7.5 per cent higher than the estimates that were previously given to them by the authorities.

In a news release on Wednesday (Nov 9), HDB said that on top of the market value compensation, the flat owners will also receive a payment for “reasonable expense”.

This comprises a removal allowance of S$10,000 to defray their relocation cost, as well as the payment of stamp and legal fees for the purchase of a replacement unit that is equivalent in value to their Sers flat.

Eligible flat owners will also receive a Sers grant of up to S$30,000 for the purchase of a replacement unit.

HDB said that its officers went door-to-door on Wednesday to deliver “compensation notices” to residents living in Blocks 562 to 565 at Ang Mo Kio Avenue 3. The compensation for the flat owners is as follows:

HDB said that the four blocks comprise 606 units that are mainly made up of three- and four-rooms flats.

At the time of the Sers announcement in April, these flats — which were completed in 1979 — are about 43 years old and have about 57 years of remaining lease.

By the time these owners move out of their flats, which is estimated to be about end 2027 for those moving to new replacement flats at Ang Mo Kio Drive, the flats would have a balance lease of about 52 years.

FACTORS FOR HIGHER ACTUAL COMPENSATION TO OWNERS

HDB on Wednesday cited two key factors for the higher actual compensation to owners. They are:

The conditions and extent of the renovations, fittings and fixtures of each unit after a physical inspection where flats that are well renovated and well maintained command higher value

The actual compensations reflecting resale market movements between the time the estimates were prepared in February 2022 and the time of the Sers announcement in April

TODAY had previously reported that some residents of the four public housing blocks were upset that they may need to top up money for a similar-sized replacement flat. In particular, they were worried that many seniors among the 600-odd households there would be unable to afford a replacement flat without downsizing to a smaller unit.

On Wednesday, HDB said that there are a wide range of rehousing options for these Sers flat owners.

Among others, residents may opt for a new flat with a fresh 99-year lease at Ang Mo Kio Drive. HDB pointed out that on top of the payment for reasonable expenses and Sers grant, these new flats are also priced with a “generous subsidy” that make their prices “considerably lower than comparable resale flats”.

These new replacement flats have an estimated price ranging from S$292,000 to S$384,000 for a 65sqm three-room flat. For four-room flats, the estimated price ranges from S$396,000 to S$487,000 for an 80sqm unit and S$438,000 to S$563,000 for a 90sqm unit.

Registration for the new flats will start in the first quarter of 2023, HDB said.

“The flat owners will be invited to book their new homes from late 2023, during which the actual selling prices of the new flats will be made known,” it said.

HDB also highlighted two new rehousing options for the flat owners:

A shorter 50-year lease for a three-room or larger flat if the 50-year lease is able to last the youngest flat owner until at least the age of 95

A lease buyback scheme for seniors for their existing flat and the purchase of a short-lease replacement flat thereafter

“With these available options, and based on the actual (higher) compensations for flats in the four blocks in Ang Mo Kio Avenue 3, almost all (99 per cent) flat owners can purchase a new replacement flat of a similar flat type or size without cash top-up, and enjoy the benefits of moving into a new flat with a lease that can last them till the age of 95 and above,” said HDB.

OTHER REHOUSING OPTIONS AVAILABLE

HDB said that aside from the new flats at the designated replacement site, the Sers flat owners have other rehousing options to choose from.

Among them, they are able to buy a new flat elsewhere in HDB’s Build-to-Order (BTO) and Sale of Balance Flats exercises with the Sers rehousing benefits.

The owners can also buy a flat from HDB’s open booking of flats with the Sers rehousing benefits or a resale flat from the open market.

Huttons Asia's senior director for research Lee Sze Teck said that with the compensation amount determined, residents will be able to “plan for their replacement flat with more certainty”.

“The upcoming BTO exercise in November will offer about 9,500 flats and there will be another 2,900 to 3,900 BTO flats slated for launch in February 2023,” he said.

“Residents affected will have more than 10,000 BTO flats across many areas to choose from.”

HDB said that when serving the compensation notices to the Sers households, its officers would have also provided a “customised financial plan” to guide the homeowners in choosing a rehousing option that “best meets their needs and budget”.

“HDB will continue to provide personalised support for all Sers households and guide them through the entire Sers process,” it said.

Source:
courtesy of TODAY

by ASYRAF KAMIL

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