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Payment offer for toppled Shanghai building near

By Cao Li (China Daily)
Updated: 2009-08-11 10:29

SHANGHAI: Hundreds of homeowners at the Lotus Riverside complex, in which one of 11 uncompleted buildings toppled over in June, are expected to know by Saturday how much they will be compensated.

The property developer, Shanghai Meidu Real Estate Development Company, will announce the average sales price of the property by this week, according to Zhang Pengfeng, lawyer of Minhang district government. The sales price will be based on the price of June 26, the day before the 13-story building fell over almost intact and killed one.

Homeowners in the collapsed building will be paid compensation based on the current market price, which is calculated based on June 26.

For the remaining 10 buildings, compensation will be based on the apartment price on June 27, when they were taken off the market, he said.

But the developer has said that a new building will not be constructed in the location of the previous building.

"The developer will give a reason for that by this week," said Zhang. "Hopefully, compensation will be completed soon."

The issue of compensation remains unsolved more than a month after the building collapsed. Different packages have been offered to homeowners, but none of them have accepted the deal yet.

According to the plan, homeowners in the collapsed building can choose to be refunded and compensated, or they can pick another apartment in one of the remaining 10 buildings.

Homeowners in the remaining 10 buildings can choose to be refunded and compensated the difference, or keep the apartment and compensated 5 percent.

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