Kwun Tong Town Centre Project



	Question 10 : I have rented out a domestic property located within the Kwun Tong Town Centre project for many years. Please tell me the difference in compensation for a vacant and tenanted unit.



	Answer : According to the URA's existing acquisition policy, the owner-occupiers of domestic properties will be offered the property's open market value (OMV) and the Home Purchase Allowance (HPA). The HPA is the difference between the value of the notional flat (which is defined as a seven-year-old flat in a comparable size situated in a similar locality) and the OMV of the property being acquired. Owners of tenanted or vacant properties will be offered OMV of their properties plus a Supplementary Allowance (50% of HPA). No value difference between tenanted and vacant flats The URA has treated the valuation of tenanted flats and vacant flats on an equal footing by removing the six per cent difference of OMV. It is estimated that the change will cost the URA about $27 million in additional compensation for acquiring tenanted properties within the projects announced but not yet commenced by the ex-LDC including the Kwun Tong Town Centre. The revised policy helps to promote better landlord-tenant relationship in projects targeted for acquisition and redevelopment.

Last Update at : 05/03/2008