Ang Mo Kio Sers residents to get compensation from HDB that is about 7.5% higher than estimates
The 606 Ang Mo Kio households whose flats were picked for the Selective En bloc Redevelopment Scheme (Sers) will receive compensation that is about 7.5 per cent higher than the estimates given by the Housing Board previously.
In a statement on Wednesday, HDB said its officers went door-to-door to deliver compensation notices to flat owners living in Blocks 562 to 565 at Ang Mo Kio Avenue 3, which were announced for the scheme on April 7, 2022.
HDB previously estimated the compensation amount for owners of three-room flats - whose units are either 68 sq m or 82 sq m - to range from $290,000 to $390,000. Four-room flat owners - whose units are 92 to 93 sq m in size - were estimated to get $380,000 to $450,000. These four blocks were completed in 1979 and are about 43 years old.
HDB cited two main factors for the higher actual compensation that residents will receive - first, the actual compensations reflect resale market movements between the time the estimates were prepared in February 2022 and the announcement in April.
The Board also said flats that are well maintained will generally command higher market prices.
Residents can opt for new replacement flats with a fresh 99-year lease at Ang Mo Kio Drive, next to ITE College Central, which have estimated selling prices that range from $438,000 to $563,000 for a 90 sq m four-room flat and $396,000 to 487,000 for a 80 sq m four-room flat.
New three-room flats, which are 65 sq m, are estimated to sell for $292,000 to $384,000.
HDB said the actual selling prices of the new replacement flats will be made known during flat selection in late 2023.
Under Sers, owners are compensated for their existing flats based on their flats’ prevailing market value at the time of the Sers announcement.
The Ang Mo Kio site came into the spotlight when some residents, upon comparing their estimated compensation amount and the selling price of similar-sized replacement flats, vented their frustration at having to fork out more money.
In response to their concerns, HDB announced two new rehousing options.
First, a shorter 50-year lease, which makes the replacement flats more affordable. Second, seniors could take up the lease buyback scheme for their existing flats and buy a short-lease replacement flat after.
Affected residents were also able to apply for a new flat in Ang Mo Kio under a priority scheme in the August Build-To-Order (BTO) sales exercise.
About 20 per cent of affected residents applied for new flats, and about nine and 10 will be successful, HDB said previously.
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