HOME-OWNERS who have resisted Land Development Corporation redevelopments face cuts in compensation of up to $1 million because of the fall in property prices. The corporation has indicated in a letter to owners that their compensation will be adjusted to reflect changes in the market. The letter said that verbal offers it had made previously were void. Outraged owners, who have been holding out for more compensation, last night accused the corporation of making an excuse to 'punish them for their resistance'. The letter, signed by the corporation's property division director Ronald Cross, said it was an appropriate time to review its offers to ensure they 'are made on fair and reasonable terms with reference to prevailing market conditions'. The property market has been weakening since the Government package to cool prices was introduced last June. Prices of residential flats have plunged by as much as 40 per cent, compared with the peak a year ago. Officials have estimated prices could drop by a further five to 10 per cent. The corporation's compensation offers are usually adjusted every three to six months, and the amount is determined by the location, size, and age of a property. It says any adjusted amount would be enough for an owner to buy a comparable unit in the same district. Offers sent to affected flat-owners in Mongkok last month allowed them until the end of next month to consider. However, the latest letter said: 'Our offer to purchase your property, whether made verbally or in writing, is hereby withdrawn with effect from the date of this letter [January 20].' Chartered surveyor Tony Chan Tung-ngok, who represents the Mongkok owners, criticised the corporation for not keeping its word. 'The owners feel very strongly about it. The corporation should not abruptly break its promise if it is an honest organisation,' Mr Chan said. Some owners could see their offer reduced by more than $1 million, taking into account an average five to 10 per cent drop in prices in the last two months. Social worker Cheng Lai-king of the United Social Service Centre condemned the corporation for playing 'dirty tricks'. She said: 'When the market boomed, the corporation did not raise compensation proportionally. But now when the market is falling, they quickly want to reduce the offers.' Keith Lam, who has rejected a $13 million offer for his four-storey block in Shanghai Street, said he would not surrender until enough compensation was paid. The corporation's senior public relations manager, Holly Lau Man-mei, said: 'It is a regular review. We have not said that we would reduce compensation. 'Some owners have been dragging along for years. But the market keeps changing and we have to respond to the changes in order to make a fair deal.'
