Sengkang BTO buyers to be compensated S$2,270 to S$6,360 for 'extended delays': HDB

HDB said the latest round of delays put the expected date of completion between May and July 2023.

Fiona Tan | May 23, 2022, 02:10 PM

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Buyers can expect to be compensated for "extended delays" in the Anchorvale Village Build-To-Order (BTO) project in Sengkang.

Delayed from Q1 2022 to May-July 2023

The Anchorvale Village BTO project has 207 two-room Flexi and three-room units across two blocks.

Launched for sale in November 2017, Mothership understands that the project was intended to be completed in the first quarter of 2022.

The Housing Development Board (HDB) informed the Anchorvale Village BTO buyers on Dec. 22, 2020, that the project's completion date would be delayed by nine months.

This was followed by another email around a year later, on Dec. 27, 2021, where HDB stated that the project was pushed back yet again to the fourth quarter of 2022.

In an email sent on May 4, 2022, seen by Mothership, HDB said the estimated date of completion has been set between May and July 2023, based on their latest assessment.

This means that the total waiting time for the Anchorvale Village BTO flats will be at least 66 months, or 5.5 years.

Compensation between S$2,270 and S$6,360

The latest round of delays is after the project's Delivery Possession Date (DPD), or the date that HDB is required to hand the new flats over to BTO buyers under its contractual agreements with buyers.

According to HDB, the Anchorvale Village BTO's DPD is on Jan. 31, 2023.

However, the buyers will only be able to collect their keys some four to six months beyond this DPD, since the project's expected completion has been delayed to between May and July 2023.

As a result, HDB said it will compensate Anchorvale Village BTO buyers, who can expect a payment between S$2,270 to $6,360.

This is dependent on the purchase price of the flat and the length of delay beyond the DPD.

If buyers get their keys earlier in May 2023, they will be reimbursed between S$2,270 and S$4,240, said HDB. If the delays are till July 2023, they will receive between S$3,400 and S$6,360.

Payments meant to reimburse costs like rental of alternative housing

HDB explained that these payments are being made as reimbursement for "out-of-pocket qualifying costs" that are incurred between the DPD and the date of flat delivery, such as costs for rental of alternative housing.

But buyers do not need to submit any claims, and HDB will disburse the maximum amount that each buyer is eligible for.

Buyers will be informed of the reimbursement amount when their keys are ready for collection, said HDB.

HDB added that buyers can expect to receive the lump sum one-off payment about two months after they have collected the keys to their flats.

Delays due to Covid-19 and weather conditions


In the May 4 email seen by Mothership, HDB said Anchorvale Village's "extended delays" were largely due to the Covid-19 pandemic and its restrictions, which disrupted construction activities.

For instance, construction activities ground to a complete halt for two months when the Circuit Breaker kicked in in 2020.

Construction was also impeded by labour and supply disruptions due to the tightening of border controls for workers from South Asia, and the Movement Control Order in Malaysia.

Weather conditions

Most recently, HDB said the "frequent rain" in March and April 2022 hindered the project's construction progress on the superstructural phase of construction, or the part of the project that is above ground level.

This is on top of the project's "tight site footprint", a further complication in the project's construction, said HDB.

The Anchorvale Village project will be integrated with a neighbourhood centre, and is located on a built-up site surrounded by existing developments such as Sengkang Riverside Park and Sengkang Sports Centre.

Speaking to The Straits Times (ST), HDB said the existing developments surrounding the project have restricted access for heavy vehicles and equipment.

Image from HDB website.

HDB apologises for delays

The tight site footprint and surrounding developments have "posed additional constraints and challenges" and significantly constrained the project's construction progress as compared to other delayed BTO projects, HDB told ST.

HDB apologised to Anchorvale Village BTO buyers for the delays.

It added that buyers who have queries or require assistance can contact HDB via the e-feedback form found on HDB InfoWEB, and that HDB will do its best to assist them.

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Top image from HDB website and from Google Street View