SINGAPORE - Flats are selected for the Selective En bloc Redevelopment Scheme (Sers), depending on whether there are suitable rehousing sites, whether redevelopment is viable economically, and whether there are financial resources available to fund the programme.

Housing Minister Khaw Boon Wan on Monday explained in Parliament how the Government selects Housing Board blocks for the scheme, in response to a question from Mr Lim Biow Chuan (Mountbatten).

Under Sers, old estates are redeveloped, and affected owners get compensation and rehousing benefits, including new replacement flats at subsidised prices.

Mr Khaw said precincts are picked for Sers "on a selective basis".

First, it will depend on whether there are suitable sites for rehousing the residents together.

"This is important for preserving community ties, and is especially valued by the elderly," said Mr Khaw.

Second, it will depend on whether the project is the economically viable.

This takes into account the potential for redevelopment, the land optimisation of a precinct, and the cost of acquisition, said Mr Khaw.

He said acquisition costs include the market compensation for the flat and reasonable expenses to cover removal, stamp and legal fees.

The Government also gives rehousing benefits and grants which include the option of purchasing a replacement flat at a subsidised price, he added.

Third, it will depend on the availability of financial resources to fund the Sers programme, said Mr Khaw.