Acquisition offers to owners of Nga Tsin Wai Village
The URA today (Thursday) issues acquisition offer letters to the
owners affected by the Nga Tsin Wai Village project. Because of the
unique circumstances of this project site, which is an urban
village with some indigenous villagers, the URA has introduced a
special compensation package, in addition to the two standard ones,
based on the practices adopted by the Government for the resumption
of urban area village.
Standard Compensation Package
The first method is based on Government's current Home Purchase
Allowance (HPA) policy for domestic property interests, which is
commonly known as the "seven-year rule." HPA is the difference
between the market value of a notional seven-year-old flat in a
comparable quality building in a similar locality and that of the
acquired property. In addition to the market value of the acquired
properties, owner-occupiers will receive the full HPA amount
whereas owners of tenanted and vacant domestic properties will
receive a supplementary allowance up to half of the HPA. The unit
rate of the notional seven-year-old flat for the Nga Tsin Wai
project is $5,202 per square foot of saleable area.
In addition, the owners to whom the offers are made will receive
an incidental cost allowance, where applicable, as an incentive for
them to accept the URA's offer within 60 days. This allowance also
serves as a subsidy for the removal and other expenses normally
incurred in the purchase of a replacement flat. The incidental cost
allowance for an owner-occupied domestic property is $106,400 or
$98 per square foot ($1,050 per square metre) of saleable floor
area, whichever is the higher. For a domestic property that is
tenanted or vacant, the amount is $83,600.
For non-domestic properties, compensation will be based on market
value plus an ex-gratia allowance. The allowance for an
owner-occupied non-domestic property is 35 per cent of its market
value or four times the rateable value, whichever is the higher.
The allowance for a tenanted or vacant non-domestic property is 10
per cent of its market value or one time the rateable value,
whichever is the higher.
The second standard method applies to properties in single
ownership, which are also commonly found in the Nga Tsin Wai
Village. Using this method, compensation is based on the existing
use value of a property plus relevant allowances for shops and
domestic units in the property or its redevelopment value plus an
ex-gratia allowance of five per cent, whichever is the
higher.
Compensation Package for Urban Village
The special method is a "government compensation practice plus 10
per cent" package. Currently, Government's compensation practice
for resumption of urban area village properties is based on a rate
representing the value of building land affected, which is also
known as notional ex-gratia compensation. Furthermore, an
additional allowance is given to indigenous villager-owners and for
those villager-owners who occupy the properties, an ex-gratia
removal allowance is payable to them as well. Using this government
compensation formula as a benchmark, the URA has decided to make
its offers more attractive by taking whatever is the result
calculated by this formula and adding 10 per cent more to it as an
incentive if the URA's offer is accepted within 60 days.
Commenting on how the value of a notional seven-year-old domestic
flat is determined, the spokesman said that in accordance with its
established practice the URA has appointed seven professional
surveyor firms to produce valuations independently. Subsequently,
the lowest and highest valuations are eliminated and the remaining
five are averaged out to arrive at a per-square-foot unit rate that
will be adopted for calculating the compensation. "This is a
broad-based, objective and professional method that has proved to
be well accepted by most owners in previous projects," the
spokesman said.
"For the purpose of this project, this mechanism also applies in
the calculation of the per-square-foot unit rate of the notional
ex-gratia compensation and the additional allowance for indigenous
villager-owners," the spokesman added.
As for the assessment of existing use values and redevelopment
values for individual properties, two professional firms of valuers
have been appointed by tender for their assessment.
Apart from cash compensation, the URA has decided to extend a
newly introduced "Expression of Interest in Purchasing Arrangement"
pilot scheme to this project so that owner-occupiers of domestic
properties can express to the URA their interest in getting an
opportunity to purchase a new flat in the new development at market
price when the project is offered for sale. "This is designed for
those who will have a need to move back to the same location for
personal reasons such as to maintain their social networks," the
spokesman said.
Separately, any shop owner or tenant of a multi-owned building,
who runs a shop within the project site will enjoy an additional
Ex-gratia Business Allowance up to three times rateable value
(roughly equivalent to 36 months' rent) payable at the rate of 0.1
time rateable value for each year of continuous occupation of the
premises up to a maximum of 30 years, subject to a minimum amount
of $70,000 and a maximum of $500,000; this is intended for
alleviating the possible business loss due to redevelopment.
Upon completion of the property acquisition, the URA will give
cash compensation to tenants or make rehousing arrangements for
them if they are eligible for public housing. The total cost of the
project including compensation, preservation and redevelopment is
estimated at about $1.24 billion.
The Nga Tsin Wai Village has an area of about 49,900 square feet.
About two-thirds of the village houses have already been demolished
by private owners over the past two decades. The structures
currently remaining are very decrepit and the living conditions are
highly unsatisfactory due to poor maintenance and lack of
sanitation facilities. It is estimated that about 60 households are
residing in 57 dilapidated village houses. Since an announcement of
the project by the former Land Development Corporation, the
affected residents have repeatedly urged the URA for its early
implementation so as to improve their living environment.
Apart from improving the living environment of the residents, the
URA has adopted an innovative conservation-by-design approach to
achieve a "conservation-paramount" objective to preserve as many
authentic structures and core elements as possible in the village
whilst designing and recreating a walled village park to resurrect
the ambience of the village history. At the same time, the design
will enable residential development to proceed in parallel.
The URA will hold several briefing sessions to provide detailed
information to the owners and tenants respectively on the
arrangement for acquisition, compensation and rehousing. An urban
renewal social service team of professional social workers from The
Salvation Army will provide counseling service and practical
assistance to residents who may encounter personal or family
problems. Affected residents may call them on 2391 6733 for
assistance. Interested parties may also call the URA hotline at
2588 2333 for any enquiries they may have.
(END)