Rochor Centre relocation questions answered

Ministry of National Development outlines payout, benefits and assistance for affected owners.

The government acquired Rochor Center in November 2011, and is now announcing that flat owners will receive a relocation package and subsidised replacement units with up to $30,000 in discounts.

"The extent of compensation that the flat owners at Rochor Centre will receive is governed by the Land Acquisition Act. Specifically, they will be compensated based on the prevailing market values of their existing flats as at the date of the acquisition, i.e. 15 Nov 2011. The market value will be assessed by a qualified and professional private valuer licensed by the Inland Revenue Authority of Singapore after a thorough physical inspection of each flat. In addition, they will also be given reasonable expenses, which comprise a removal allowance as well as stamp and conveyancing fees to buy a comparable replacement flat," said MND in an official response.

"As home ownership is an important social objective, flat owners whose homes are acquired for a public purpose, like in the case of the Rochor Centre, are given a relocation package, with benefits similar to those offered under the Selective En bloc Redevelopment Scheme (SERS). The new replacement flats, with a fresh 99-year lease, will be offered at subsidised prices, similar to those applicable to all eligible public applicants in HDB’s sales exercises. However, the prices will be frozen as at the date of acquisition, Nov 15, with a further 20% price discount, of up to $30,000, for eligible flat owners," it said.

Price differentials though will be a determined on a case-to-case basis, based not on original price purchase but on overall flat condition and improvements. MND also clarified a spate of other concerns, including those of BTO applicants and retirees.

"First, on whether there could be added compensation for those who have bought their flats at a higher price, we need to be fair to all residents. Hence, the compensation has to be on the same basis of market value, irrespective of the original purchase prices. The valuer will take into account the resale transaction prices just before the acquisition was announced, as well as the individual attributes of the flats, including the extent and condition of renovation, among others," MND said.

"Second, on whether to give Rochor Centre residents priority to Build-to-Order applications in other areas should they choose not to relocate to the Kallang replacement site, we need to balance the needs of Rochor Centre residents and those of other public applicants."

"Third, on whether the resale levy can be reduced, various concessions are available to assist the flat owners. For example, for those eligible for the 20% price discount, they can choose to forgo the discount in lieu of paying the resale levy. For those not eligible, they may incorporate $30,000 of the resale levy as part of the purchase price of the replacement flat, and defer the balance amount, without interest, until they sell or transfer the replacement flat."

"Fourth, for retirees affected by the CPF Minimum Sum, HDB will help them appeal to CPF Board to use part of the amount to be refunded into the CPF Retirement Account to pay for the replacement flat. As each case is unique, CPFB and HDB will work together to help the affected flat owners as much as we can, subject to financial prudence."

"Finally, on the request to give priority to co-occupiers of the flats should they apply for units under the sale of balance flats in the new Kallang development, the married children can benefit under the Married Child Priority Scheme. They will have double the chances compared to other applicants, once their parents have selected their replacement flats in Kallang," ended MND.