SLA works out $17m compensation for Hock Kee House owners
By Julia Ng, Channel NewsAsia
SINGAPORE : The Singapore Land Authority has worked out a
compensation package of about $17 million to owners of the 35 units
at Hock Kee House in Paya Lebar.
On Thursday, the owners were informed of the compensation under the
Land Acquisition Act, which SLA says is pegged to the current
market value.
But some owners say the amount offered to them is up to 40 percent
less than the valuation by their private valuers.
Since the government informed owners of Hock Kee House of the need
to move a month ago, eight have already done so.
Another 24 units have indicated that they will move out before
October 3 deadline.
The SLA said it had taken into account reports by the state valuer,
as well as submissions by owners in working out the compensation
package.
The statutory compensation is over and above the $3.2 million
Special Assistance Financial Package by the Land Transport
Authority.
There is also an ex-gratia payment for those who may suffer some
hardship because of the acquisition at short-notice.
Simon Ong, Director of Land Resource Business at SLA, said: "The
principle of payment for this ex-gratia is hardship. By hardship,
we looked at individuals' special conditions. Such as their medical
conditions, their mortgage status and so on."
The ex-gratia payment is on a case-by-case basis, so not every
owner will get it.
But that is not the only reason owners of Hock Kee House are
upset.
Of the 35 owners, 26 say they are not satisfied with the
compensation amount they have been offered.
Tan Oon Fei, house owner at Hock Kee House, said: "The compensation
given by SLA today is $300K. But according to my valuer, the report
was $522,000. The difference is so wide! With this $300K given by
SLA, I cannot even buy a same unit as mine!
"If you want to be fair, you need to compensate me with market
value. Compensate with an amount which I can buy on the market
value. But this is not the case!"
Ng Chee Lye, Coffeeshop owner at Hock Kee House, said: "They pay me
only $1 million. My valuer valued at $1.56 million. So I am in the
loss, so even in the open market, I cannot buy a coffeeshop which
has around 3,000 square feet!
"Also, we claim for the ex-gratia - it is not given to me. They
just give me the valuation of one million dollars."
The owners have up to September 29 to lodge an appeal (with the
Appeals Board). - CNA/de
