The URA will offer an owner-occupier of domestic property the market value (valued on a vacant-possession basis) of his property plus an ex-gratia allowance, namely Home Purchase Allowance ("HPA"), for the purchase of the property.
The HPA is the difference between the market value of the property being acquired and the value of a notional replacement flat, which is a seven-year-old flat of similar size and in a similar locality to the property being acquired, and located on a middle floor with average orientation.
An owner who leaves his property vacant will be offered the market value (valued on vacant possession basis) of his property plus a Supplementary Allowance ("SA") instead of the HPA. The SA is a percentage of the HPA.
If an owner does not reside in his property as his sole residence, the occupancy status of his property will be treated as being vacant.