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URA issues acquisition offers to owners of Castle Peak Road / Un Chau Street Project

The Urban Renewal Authority (URA) today (Friday) issued acquisition offers to property owners affected by the Castle Peak Road / Un Chau Street Development Project in Sham Shui Po.

Eligible owner-occupiers of domestic properties affected by the project are offered $10,649 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 were deliberated and approved by the Land, Rehousing and Compensation Committee of the URA Board earlier.

The Castle Peak Road / Un Chau Street project affects a total of 101 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.  The whole process is transparent, open and fair.

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 12,000 square metres of residential floor area for about 260 flats (mainly small to medium sizes), including some units of lower levels to be reserved for flat-for-flat option. Some 2,400 square metres of commercial/retail floor area will also be included in the new development. The project is tentatively scheduled for completion by 2022/2023.