Sai Yee Street Project in Mong Kok begins property acquisition
The Urban Renewal Authority (URA) today (Tuesday) issues offer
letters to owners of 175 property interests affected by the Sai Yee
Street project in Mong Kok. Eligible owner-occupiers of domestic
properties will be offered $7,012 per square foot of saleable floor
area.
A spokesman of the URA said: "The acquisition offers for domestic
properties are based on the Government's Home Purchase Allowance
policy, whereby eligible owner-occupiers would receive an offer
equivalent to the market price of a notional seven-year-old flat of
similar size in the locality. The unit rate applicable for the
project was decided by an established mechanism, through which
seven independent surveyor firms have been appointed for
valuation."
The latest total development cost of this project is estimated to
be $4.56 billion, of which acquisition and rehousing cost is about
$3.1 billion.
Apart from cash compensation, the URA has decided to extend the
application of the "Expression of Interest in Purchasing
Arrangement" pilot scheme to owner-occupiers of domestic properties
in this project. As for eligible shop owners who occupy the shops
and shop tenants, apart from those terms based on the usual
acquisition policy of the URA, they will also enjoy an additional
Ex-gratia Business Allowance.
For the existing operators of sports retail business, whether they
are tenants or owners, if they choose not to receive the Ex-gratia
Business Allowance, they can take part in a "Local Sports Shops
Arrangement" whereby they will be given priority to lease a retail
unit after project completion at the then market rent for an
initial term of three years.
Affected owners will have ample time to consider the URA's offers
and to accept them within 60 days. Owners will also receive
an incidental cost allowance (ICA), where applicable, as an
incentive for them to accept the offers within the 60-day
period. The current ICA for owner-occupied domestic property
is $109,500 or $105 per square foot ($1,135 per square metre) of
saleable floor area, whichever is higher. For domestic property
that is tenanted or vacant, the ICA is $85,900.
Upon completion of the property acquisition, the URA will make
ex-gratia payment or rehousing arrangement for the eligible tenants
concerned.
(ENDS)