Following news of the relocation, property owners at Pearls Centre (pictured) have called on the authorities for more compensation considering the potential en bloc value of their property.
About three months ago, a collective sales committee was set up for the 23-storey, 99-year leasehold commercial and residential building in Chinatown. The owners of the 199 shops and 44 residential units have been given two years to vacate the premises.
The 43-year old building has to be vacated as the Singapore Land Authority (SLA) plans to acquire it for the construction of underground tunnels for the Thomson Line (TSL).
“The fact that an en bloc process has started, it means that there was an increase in expectations of the price,” said Indranee Rajah, Member of Parliament for Tanjong Pagar GRC.
“But if it’s just figures tossed in the air, obviously you can’t say it represents market value,” she added.
Property owners expect the collective sale potential of Pearls Centre to be considered when their compensation is worked out.
However, Ms Rajah advised owners to present the SLA with information such as renovation costs. She also said that they should conduct their own valuation prior to meeting the authorities to discuss compensation.
She also plans to help them appeal to the housing board and ask for an exemption from the requirement to wait 30 months before private property owners can downgrade to a HDB flat.
Meanwhile, shop owners have been advised to search for suitable places for their businesses before asking authorities to help them identify potential areas for relocation.
Furthermore, an ad hoc grassroots committee has been formed to help residents with their concerns.
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Pearls Centre valued between S$450m to S$600m