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The compensations for flat owners at Ang Mo Kio Avenue 3 were, on average, about 7.5 per cent higher than the estimated market values provided at the point of the Selective En bloc Redevelopment Scheme (SERS) announcement, in a press release by HDB on Nov. 9
With the housing options provided by HDB, and based on the actual higher compensations for the flats, HDB estimated that 99 per cent of the flat owners in Ang Mo Kio selected for SERS can purchase a new replacement flat of a similar flat type or size without needing a cash top-up.
HDB compensated 606 households living in Blocks 562 to 565 at Ang Mo Kio Avenue 3, who were selected for the SERS.
They are compensated for their flats in line with the Land Acquisition Act, based on the prevailing market value at the time of the SERS announcement.
The market compensation is assessed by a professional private valuer, and takes into account factors like the transacted prices of comparable resale flats in the vicinity, the remaining lease and individual flat attributes like floor area.
It also factored in the amenities in the area, like parks, schools and proximity to an MRT station.
Higher than estimated compensation
HDB highlighted that the actual compensations were, on average, higher after taking into account two key factors.
The first is the conditions and extent of renovations, as well-maintained and well-renovated flats held higher values.
The second is a reflection of resale market movements between the time the estimates were prepared in Feb. 2022, and the SERS announcement in Apr. 2022.
Additional payment
On top of the market value compensation, the flat owners will receive payment for reasonable expenses, comprising a removal allowance of S$10,000 to compensate for the relocation cost, and payment of stamp and legal fees for the purchase of a replacement flat equivalent in value to their old one.
Eligible flat owners will also receive a SERS grant of up to S$30,000 for the purchase of a replacement flat.
HDB estimated that 99 per cent of the flat owners selected for SERS can purchase a new replacement flat of a similar flat type or size without needing a cash top-up.
Screenshot from HDB.
Replacement site
With the housing options provided by HDB, and based on the actual higher compensations for the flats, HDB estimated that 99 per cent of the flat owners in Ang Mo Kio selected for SERS can purchase a new replacement flat of a similar flat type or size without needing a cash top-up.
The flat owners had a number of options, including two new ones offered in July 2022:
- A 3-room or larger new flat on a 50-year lease, if the 50-year lease flat is able to last the youngest flat owner till at least age 95. The 50-year lease length would be close to the balance lease of their existing flat when they move into their new flat around end 2027.
- Take up the Lease Buyback Scheme for their existing flat, for flat owners who are at least 65 years old, and buy a short-lease new replacement flat thereafter.
They could also get a new 2-room Flexi flat on a short lease, for flat owners aged 55 and above, or a new flat on a fresh 99-year lease.
For the latter, the replacement flats are located at the nearby Ang Mo Kio Drive nearby.
"On top of the payment for reasonable expenses and SERS grant for eligible flat owners, the new flats are priced with a generous subsidy, making their prices considerably lower than comparable resale flats," HDB said.
It includes various recreational and communal facilities, like a childcare centre. The flats are a 5-minute walk away from Cheng San Neighbourhood Centre with a wet market, hawker centre and various shops.
HDB added, "In addition, they will be well served by several trunk bus services to Ang Mo Kio Town Centre, and can travel to other parts of Singapore easily, with both the Ang Mo Kio and Yio Chu Kang MRT stations nearby."
Unhappiness expressed by residents of Ang Mo Kio flats
The flats comprised 606 units of mainly 3-room and 4-room sold flats.
They were completed in 1979, are around 43 years old and have about 57 years left on their lease at the time of the SERS announcement.
By the time the owners move out, the lease is expected to have 52 years left.
Previously, some of the Ang Mo Kio residents expressed concern that they would not be able to purchase a replacement flat even with their compensation.
They also expressed unhappiness that their relocation options were in places with fewer amenities.
National Development Minister Desmond Lee announced in July 2022 new rehousing options for the residents affected by SERS.
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Top image via Google Maps.