Average compensation of S$3,000 for Anchorvale Village flat buyers due to completion delay

SINGAPORE: Nearly 200 flat buyers of Anchorvale Village will be eligible for compensation of between S$1,100 (US$830) and S$4,500 for the completion delay brought about by the COVID-19 pandemic. 

This comes as the Housing and Development Board (HDB) on Sunday (Jul 16) announced the completion of 12,000 flats across 16 projects in the first half of 2023 - both the highest figures compared with the same period since 2018.

Among the completed projects is Anchorvale Village in Sengkang where the residential blocks were delayed beyond their delivery possession date, which refers to the legal contractual date by which HDB is required to deliver possession of the flat.

Under the COVID-19 (Temporary Measures) Act, flat buyers whose flats are delayed beyond the delivery possession date will be able to seek reimbursement for qualifying costs. 

The residential blocks were completed in June, five months after the project's original delivery possession date of January 2023.

A total of 197 households of Anchorville Village who booked their flats by May 4, 2022 are eligible for the reimbursement, said HDB in a news release. 

"To minimise inconvenience to flat buyers, HDB will be offering to pay flat buyers of Anchorvale Village the maximum reimbursement sum that they would be eligible for, without them having to submit any claims/proof of the expenses," said the Housing Board. 

The buyers will receive the reimbursement within two months after completing the flat purchase and accepting the settlement agreement. 

The estimated amount for the affected flat buyers ranges from S$1,100 to S$4,500, with the average reimbursement sum being about S$3,000. 

The total reimbursement amount for all 197 households is estimated to be about S$600,000, said HDB. 

Flat buyers were invited to collect their keys on Jul 10, said HDB, with 115 households having done so to date.

Anchorvale Village is one of the two BTO projects delivered past its delivery possession date, the other being Waterway Sunrise II. 

"With the successful completion of Anchorvale Village, HDB has handed over both delayed projects, despite the challenges posed by COVID-19," said HDB. 

Bounded by Anchorvale Street and Anchorvale Road, Anchorvale Village is an integrated development comprising 207 units of two-room Flexi and three-room flats across two residential blocks, as well as a new-generation neighbourhood centre. 

The project was originally expected to be completed by the first quarter of 2022, said HDB, but was severely delayed due to labour shortage and disruptions to material supplies caused by the COVID-19 pandemic.

Additionally, the tight site area and the development's complex design also limited how much the main contractor could speed up construction. 

Ongoing works at the neighbourhood centre are expected to be completed in the fourth quarter of this year, with shops set to start operations in the quarter after that. 

FLATS COMPLETED IN FIRST HALF OF 2023

HDB said in its media release on Sunday that out of the 16 projects completed in the first half of 2023, 15 were delayed by the COVID-19 pandemic.

Keat Hong Verge was the first Build-to-Order (BTO) project to be completed without any delays since the Circuit Breaker period in 2020. 

With the completion of the 15 projects held up by the pandemic, HDB said it has delivered a total of 66 delayed projects (or about 72 per cent) from October 2020 to June this year. 

The remaining delayed projects remain under construction, and HDB said it aims to complete all of them in about 18 months' time, by early 2025.

In the first half of 2023, HDB said it issued 13,400 sets of keys to flat buyers, more than double the 6,208 sets of keys issued in the same period last year. 

Altogether, HDB has handed over 54,800 keys to flat buyers since the start of 2020. 

"HDB recognises that construction delays have caused inconvenience to flat buyers and will continue to do its best to deliver the projects expeditiously, while ensuring quality and safety," it said. 

With the 12,000 flats completed, it is on track to complete 20,000 flats this year, HDB added. 

Minister for National Development Desmond Lee, along with Second Minister for National Development Indranee Rajah, visited HDB’s MyNiceHome roadshows at Anchorvale Village and West Coast Parkview over the weekend.

Writing on Facebook, Mr Lee acknowledged on Sunday that the projects in West Coast and Anchorvale were "among those which were delayed by COVID".

"Many homebuyers had to adjust their life plans as they awaited their flats, and I am grateful for Singaporeans’ patience and understanding," he said.

Mr Lee added that "we are making steady progress and should complete all delayed projects by 2025" and by that year, HDB will oversee more than 150 BTO construction projects at the same time.