As we expected, a fuller version of the compensation details for those affected by the apartment building fire on Jiaozhou Lu were released this morning. While they are more detailed than the short announcement from last night, there are still some questions to be answered.
A previously reported, families who had a victim die in the fire will receive 960,000RMB for each victim. This includes the legally ordained 650,000RMB payment under China’s “tort law” as well as 310,000RMB from government and social donations. Payment will be the same regardless of whether the victim had a Shanghai hukou.
The 71 people injured will be compensated for their hospital bills. They will also receive other types of “compensation and assistance”
Residents whose homes were damaged will also be compensated “according to market prices.” Those property settlement claims will be made through a third-party assessment commission which should be chosen by the residents themselves.
Meanwhile, the government will begin moving back residents of two other blocks in the complex as soon as safety checks are done. The main problem right now is taking out all the flammable polyurethane foam they found, which has been blamed for the quick spread of the fire.
But as Shanghai Daily reports, some aren’t happy with the settlement – especially when it comes to property costs:
Jiang, a retired teacher, said her daughter had bought the apartment so she could more easily care for her elderly parents.
“If she gets money according to the market standard, she won’t be able to afford an apartment of the same size within a kilometer of the area.” Jiang said the market value of her daughter’s apartment was about 30,000 yuan per square meter while apartments in the area were selling for more than 40,000.
Apparently the victims happened to be living in the cheapest tower in all of Jing’an. Looking at data on Anjuke and Soufun, there’s at least something backing up that claim. Especially since the fire seems to have lowered the market property price of 728 Jiaozhou Lu.
Anjuke says it has dropped 0.46% from October prices to an average square meter price of 22,957RMB. Compared to a list of prices in the Jing’an area, they’d need a good extra 5000RMB per square meter to get something similar.