SELECTIVE EN-BLOC REDEVELOPMENT SCHEME

Dr Kanwaljit Soin asked the Minister for National Development if he will give (i) more details on the compensation package for the affected tenants of rental flats and the affected owners of 1-room flats in the Ang Mo Kio Selective En-bloc Redevelopment Scheme; and (ii) an assurance that these people will not be affected adversely.

Mr Lim Hng Kiang: The Government has put together a very attractive compensation package for lessees affected by the Selective En-bloc Redevelopment Scheme (SERS) so that no one would be deprived of a home.

The compensation package for lessees in the Ang Mo Kio site is the same as that announced for the other sites. This is as follows:

(A) Compensation Package for Flat-Owners (including 1-room flats)

Under SERS, owners of flats, including the 1-room flats at Block 309 Ang Mo Kio Avenue 1, are compensated at the prevailing market values of their existing flats as at 30th June 1996 when SERS was announced. For the 1-room flats, this is estimated to be about $50,000 to $70,000.

In addition, the flat owners are given a package of rehousing benefits as follows:

(a) assured allocation of a new replacement flat (4- or 5-room) at the vacant site south of Townsville Primary School;

(b) discount equivalent to 20% of the selling prices of the replacement flats, subject to a maximum of $30,000 for eligible owners. If they sell their flats to eligible buyers, their flats command a significant premium because of the SERS benefits.

The selling prices of the new replacement flats are frozen as at the date of the SERS announcement ranging from $182,000 to $232,000 for a 4-room flat (90/95 m²) and $303,000 to $369,000 for a 5-room flat (110 m²).

For some of the affected 1-room flat owners who are unable to afford the new 4-room replacement flats, the following options are available:

(a) they can include their parents/children as co-lessees of the new replacement flats to assist in the payment of the new replacement flats;

(b) they can purchase directly from HDB 3-room buy-back flats or 2-room upgraded flat (subject to availability);

(c) they can sell their existing flats with their rehousing benefits to eligible buyers (who must be eligible to buy flats directly from HDB). The sale will fetch a premium for the rehousing benefits. Combining the sale proceeds with their CPF savings, they should be able to buy a 2-room or 3-room resale flat from the open market.

(B) Relocation Benefits to Tenants of Rental Flats

In tandem with the redevelopment of Blocks 307,308, 309, 315 and 316 at Ang Mo Kio Avenue 1 under SERS, 6 units of 1-room rental flats at Block 309 and 154 units of 2-room rental flats at Block 310 Ang Mo Kio Avenue 1 will be relocated.

The relocation benefits for the affected eligible flat tenants are as follows:

(a) Priority allocation of:

(i) surplus new flats to be built at the vacant site south of Townsville Primary School for tenants of Block 309 and at the present site of Blocks 309, 315 and 316 for tenants of Block 310 (see site plan at Annex A (Cols. 473 - 474)); or

(ii) new flats in non-mature estates under the Registration for Flat System; or

(iii) 2-room upgraded flats or 3-room buy-back flats (subject to availability).

(b) waiver of registration fees for tenants purchasing flats under the Registration for Flat System;

(c) waiver of booking fees for tenants purchasing 4-room (90 m²) or smaller flats;

(d) higher quantum of mortgage loan for tenants if they purchase an HDB flat as follows:

(i) for 4-room (90 m²) or smaller flats, up to 100% of the selling price or the market valuation, whichever is lower;

(ii) for other flats, 90% of the selling price or 90% of the market valuation, whichever is lower.

(e) for those whose new sold flats allocated are under construction, allocation of rental flats as temporary accommodation;

(f) for tenants wishing to continue to rent a flat, priority allocation for rental flats in the same or nearby estates; and

(g) a removal allowance of $1,000. Annex A - ANG MO KIO/AVE 1/ST 32 REDEVELOPMENT (Cols. 473 - 474)

In all the seven SERS sites announced to-date, the response from the lessees and tenants has been very good. Most residents opt for bigger flat-types as their replacement flats. This is so even for those living in smaller flats. For example, from a survey done amongst 1-room lessees in the Redhill SERS site, 68% indicated that they would opt for a 4- or 5-room flat. Only 32% of the lessees indicated that they would opt for a 2-room upgraded or 3-room buy-back flat.