Don't cash out flats, Rochor residents urged

Don't cash out flats, Rochor residents urged
By Joanne Chan | Posted: 16 November 2011 2106 hrs
     
SINGAPORE: Residents of the Rochor Centre HDB flats have been cautioned against cashing out in the resale market.

Member of Parliament for Moulmein-Kallang GRC Denise Phua has urged them to consider taking up the relocation package to Kallang, following Tuesday's announcement on the North-South Expressway (NSE).

Four blocks at Rochor Centre will be making way for the NSE.

Affected residents have been assured of a new flat in Kallang, and in many cases, may even enjoy some net proceeds.

Following the initial shock of the news, residents have been trying to make sense of the compensation offered.

Some have raised concerns the money offered is insufficient.

RC chairman Eunice Phng said: "Three-room to three-room, they're getting about S$100,000, they think it's still not enough.

"Because they are actually making way for the highway, and this is a very prime area, you can't get a similar area like this.

"So they think the loss is there. But in terms of payment, if the authorities can look into more benefits, that will really make them happier."

Home owners have the option of selling the flat in the open market, where they are likely to fetch a premium above market value.

The relocation benefits can also be transferred to the new owner, who may have set their sights on the Kallang development.

But the area's MP has urged residents against selling their flats.

Ms Phua said: "If any of the residents were to sell too quickly without thinking through, and apply for another estate, they will not get the priority and they may find themselves stuck.

"The other thing is, if they choose to cash out and use the money and find that later on they have no where else to go, they will not be -- most of them -- ... entitled to a rental flat because of the surplus they would have profited."

Ms Phua also pointed out residents stand to gain from moving to Kallang.

She noted that not only will they be getting a brand new flat with a fresh 99-year lease, elderly residents who currently endure the inconvenience of a lack of lifts in Rochor, will be able to benefit from having lifts on every floor in Kallang.

HDB has frozen the sale of these flats for a month to ensure residents fully understand the relocation package before making a decision.

It will also be holding a week-long exhibition, starting this Friday, to explain the compensation details and also provide more information on the replacement flats in Kallang.

- CNA/wk

- wong chee tat :)