ST Explains: What is Vers and which HDB estates could it be rolled out in?
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Singapore is aiming to roll out the Voluntary Early Redevelopment Scheme to a few sites in the first half of the 2030s.
PHOTO: ST FILE
Follow topic:
- Sers is compulsory, redevelops old HDB blocks, compensates owners at market value and offers them new flats nearby.
- Vers aims to address lease decay, allowing owners of flats 70+ years old to vote for the Government to buy back their homes.
- Authorities aim to develop Vers in this term, seeking feedback and rolling it out to selected sites in the first half of the 2030s.
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SINGAPORE – The Government will focus its efforts on the Voluntary Early Redevelopment Scheme (Vers), with the aim of rolling it out to a few sites in the first half of the 2030s.
National Development Minister Chee Hong Tat said in an interview on Aug 5 that there are no plans for further projects under the Selective En bloc Redevelopment Scheme (Sers)
The Straits Times explains the two schemes and what is known about Vers so far.
What is Sers?
Under Sers, the authorities select old Housing Board blocks to be demolished and redeveloped. The scheme is compulsory.
Home owners are compensated based on the market value of their flats at the time the project is announced, and given the option to buy a new replacement flat nearby with a fresh 99-year lease. They also receive rehousing benefits, such as a $30,000 grant to buy a new flat.
HDB previously said that about 5 per cent of flats are estimated to be eligible for Sers.
Since 1995, 80 Sers projects have been completed, while two are still in progress.
What is Vers?
Vers, which has yet to be rolled out, will allow owners of flats aged 70 years and older to vote on whether the Government should buy back their homes before their leases run out.
It is the proposed solution to lease decay – the erosion of a flat’s value as the end of its 99-year lease approaches.
Vers was first announced by then Prime Minister Lee Hsien Loong
On Aug 5, Mr Chee said the authorities aim to develop and flesh out the Vers framework in the current term of government. This includes setting parameters to identify sites under the scheme, working out a fair compensation package for Vers residents, and ensuring there are enough homes ready in time for them to relocate to.
What will Vers look like?
Details of replacement flats for residents of Vers projects, such as lease options, have yet to be announced. The voting threshold for a Vers project to go ahead is also unknown at this point.
In his interview, Mr Chee said that ideally, new flats for residents of Vers projects will be built not too far from their existing homes.
On compensation, he noted there will be less financial upside to Vers, unlike Sers, as the flats will be older.
He added that the scheme has to be fair to the current generation of flat owners and financially sustainable for future generations.
The existing precinct can then be redeveloped and used to build new homes for residents of a subsequent Vers project, he said.
Which estates could Vers be rolled out in?
Mr Chee pointed out that several older estates were rapidly built up in the 1970s and 1980s to meet the urgent housing demand then.
Examples of towns built in this period include Ang Mo Kio, Bedok, Tampines and Yishun.
According to ERA Singapore, 356 blocks were built in Ang Mo Kio during this period, and about 39,600 new flats were sold by HDB then. In Bedok, 419 blocks were completed, with about 47,000 new flats sold.
In the 1980s, 494 blocks were built in Tampines and 487 blocks in Yishun. In each town, more than 40,000 new units were sold.
In addition, some of Singapore’s oldest flats on 99-year leases were completed as early as in 1962, making them 68 years old in 2030. These flats are located in areas such as Tanjong Rhu, Tiong Bahru and Dakota.
What is the timeline for Vers?
The authorities will first seek Singaporeans’ views and feedback on Vers before rolling out the scheme to “a few selected sites” in the first half of the 2030s.
Vers will progressively be scaled up by the late 2030s, with the aim of offering it to selected estates in different parts of Singapore, Mr Chee said.
Why are there no plans for more Sers projects?
In a written parliamentary reply in 2022, the Ministry of National Development said it does not expect many more sites to be eligible for Sers, as most of the projects with high redevelopment potential have already been selected.
The latest Sers project, which is currently ongoing, involves Blocks 562 to 565 in Ang Mo Kio Avenue 3
Completed in 1979, these blocks were around 43 years old when they were selected. The replacement flats are expected to be completed in the third quarter of 2027.
