The Urban Renewal Strategy Review's "flat for flat" option offers an additional choice to owner-occupiers affected by Urban Renewal Authority redevelopment projects. However, they will have to bear the risk of changes in the property market.

This was the message today from Permanent Secretary for Development (Planning & Lands) Thomas Chow. Speaking on a radio talk show, he said the flat-for-flat arrangement is based mainly on the consideration of enabling owner-occupiers to retain their social network, and is an additional option to cash compensation based on a notional seven-year old replacement flat in the same district.

Owner-occupiers must first accept the cash compensation which will be the basis for all other related considerations.

Mr Chow said for those who choose the flat-for-flat option, if the value of the new flat is higher than the compensation, the owner will need to pay the Urban Renewal Authority the difference. If the value is lower than the compensation, the owner will be refunded the difference.

He said the authority will study how to provide adequate information to help the affected owners make the appropriate decision, adding the strategy can only be fine-tuned with input from the public. He urged people to attend the concluding meeting to be held at the Federation of Youth Groups Building in North Point on June 5 from 2.30pm.