There are divided views on the current compensation policy. Some affected property owners consider it insufficient, while others consider it over-generous.

Compensation for domestic owner-occupiers is equivalent to the market value of their properties plus an of ex-gratia allowance (namely Home Purchase Allowance), so as to enable the owner-occupiers to purchase a flat of better conditions to live. The unit rate of acquisition offer is based on a national replacement flat of seven years old similar size in a similar locality. The same compensation principle is applied to owners of vacant and tenanted domestic units yet at a comparatively lower rate of allowance due to differences in the use of property. Some property owners claim this is unfair, and think that the URA should compensate them with the same allowance.

Some affected property owners complained of being forced to leave the community where they used to live. In response to this concern, the URA offers a Flat-for-Flat (FFF) option, as an alternative to cash compensation, to domestic owner-occupiers affected by the URA's redevelopment projects after the promulgation of the new Urban Renewal Strategy promulgated in February 2011.

Moreover, as it usually takes time for planning and soliciting approval for implementing a redevelopment project, the current compensation arrangements may lead to eviction of some tenants by landlords before the property is acquired and hence losing their eligibility for compensation or rehousing.