According to media reports, the owners of six semi-detached houses and nine walk-up apartments that will make way for the upcoming Thomson-East Coast MRT Line (TEL) will receive a total of $45 million as compensation, or $1,270 psf on average.
The apartments are part of a shophouse complex at Tanjong Katong Road, while the six semi-Ds are located in Amber Road, Katong.
Although some owners have accepted the price as being fair, others are requesting for a bigger amount as it is below the area’s prevailing market rate.
“We can easily get $1,300 to $1,600, but they are offering us much less,” said Cheng Quek Hin, 66, a retired contractor who owns one of the apartments.
Based on recent transactions, prices of landed homes in the vicinity range from $1,350 to $1,550 psf, while Amber Towers was collectively sold for $1,118 psf in 2011, noted JLL’s research head Chua Yang Liang.
“It would appear that the compensation for these owners is fair, at least on a land-value perspective,” he said.
Under the Land Acquisition Act, property owners dissatisfied with the compensation can submit their appeal to the Singapore Land Authority’s (SLA) Appeals Board.
SLA is “in the process of settling” with other property owners affected by the TEL development, including the Laguna National Golf and Country Club which will lose over 190,000 sq ft of land.
Chua shared that the club’s compensation is expected to be lower on a psf basis as the land is cheaper than in the case of the residential properties.
“Except for the few residential units along Meyer, Marine Parade and Tanjong Rhu, the rest are either institutional or industrial,” he added.
Image source: LTA