Property acquisition for URA’s Tonkin Street/Fuk Wing Street project to start soon
The Urban Renewal Authority (URA) will issue acquisition offers to property owners affected by the Tonkin Street/Fuk Wing Street redevelopment project in Sham Shui Po shortly in September. Eligible owner-occupiers of domestic properties affected by the project will be offered $9,461 per square foot of saleable area, which is equivalent to the unit rate of a notional replacement flat of seven-year-old situated in similar locality and of similar size.
The acquisition offers for the project are deliberated and approved by the Land, Rehousing and Compensation Committee of the URA Board today (Wednesday).
The Tonkin Street project affects a total of 81 property interests. Property owners will have 60 days to consider the URA's offers.
The URA's prevailing acquisition policy for both domestic and non-domestic property interests is applicable to this project.
The acquisition offers for domestic properties are calculated in accordance with the Government's Home Purchase Allowance (HPA) policy in which HPA is the difference between the market value of the acquired domestic property and the value of a seven-year-old notional replacement flat of similar size in similar locality. On top of the market value of the acquired domestic properties, eligible owner-occupiers will receive the full HPA amount whereas eligible owners holding wholly tenanted or vacant domestic properties will receive a supplementary allowance up to half of the HPA.
In line with the established mechanism, the URA has appointed seven independent valuation firms for the valuation of the unit rate of the seven-year-old notional replacement flat.
Upon completion of the property acquisition, the URA will make ex-gratia payment or rehousing arrangement for the domestic tenants concerned, if eligible.
The URA will organise briefings for the affected owners, residents and shop operators to explain to them the acquisition and compensation and rehousing arrangements.
The URA's initial proposal is to redevelop the site to provide about 145 residential flats of small to medium sizes. Some 1,490 square metres of commercial floor area will also be included in the new development, which is tentatively scheduled for completion by 2020/2021.