No more Sers for older HDB estates for now, but voluntary scheme likely to begin in the 2030s

Business Times

2 days ago

[SINGAPORE] The government does not plan to continue its selective en bloc redevelopment scheme (Sers) to rebuild older public housing estates, said Minister for National Development Chee Hong Tat in a media interview on Aug 5.
Instead, its priority during this term of government is to develop the framework for the voluntary early redevelopment scheme (Vers), which will be implemented only from the first half of the 2030s, he said.
This means setting parameters to identify possible Vers sites, ensuring sufficient homes are ready in time for relocation of residents who are involved in the scheme, and working out a fair package for such residents.
'After we have established the Vers framework and parameters, we can then start with a few selected sites… and (scale it up) by the late 2030s,' said Chee. That is when some of Singapore's older public housing flats, which were built in the 1970s and 1980s, reach their 70-year mark.
'If we leave all the leases to naturally run down, we will need to relocate a large number of residents and build many new homes within a short time in the 2070s and 2080s,' he said. 'This will be very disruptive to residents who are staying in these towns.'
The redevelopment of these older estates will instead be progressively staged over 20 to 30 years, allowing the authorities to be more strategic in replanning ageing towns, as well as to reap 'some of the land intensification and estate rejuvenation gains earlier'.
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Ideally, Vers residents would be relocated to a new flat nearby, said the minister. The redeveloped flats can then serve as replacement housing for the next group of residents undergoing Vers, minimising disruption for the entire town.
Chee added that unlike Sers, which involves precincts with high redevelopment potential and is highly selective, there is less financial upside with Vers since the flats are older.
In 2022, households in 606 Ang Mo Kio whose flats were picked for Sers received compensation of up to S$450,000 . Those flats were completed in 1979 and were about 43 years old then. The compensation was based on the flats' prevailing market value at the time of the Sers announcement.
On top of that, flat owners received a grant of S$30,000, a removal allowance of S$10,000 to defray the relocation cost, and payment of stamp and legal fees for the purchase of a replacement flat equivalent in value to their Sers flat.
'The terms (for Vers) will be less generous,' said Chee.
Given that Vers is voluntary, residents may collectively decide not to proceed with it.
'For these residents, they can continue to stay in their flats until the leases run out,' he said. 'The government will support them in other ways to keep their flats and their estates liveable and vibrant.'
For these older flats, the government will introduce a second round of the home improvement programme (HIP), which will be more extensive than the current HIP package. Details will be given next year.
The HIP was introduced in 2007 to spruce up older housing estates and make essential improvements for public health and safety. Initially, this was for flats built up to 1986. The programme was extended in August 2018 to include flats built between 1987 and 1997.
'After the HIP, with flat owners doing their part with regular maintenance, the flats should be good for another 30 to 40 years before they start to show their age again,' said Chee.
With HIP 2, Chee said flats that reach the 60-year mark will be given a second round of maintenance works – such as solutions for spalling concrete – to ensure they 'will be good enough to last the flat owners till the end of lease'.
The government will also study ways to enhance the living environment of older estates. Existing programmes under HDB include the Neighbourhood Renewal Programme (NRP), and the Silver Upgrading Programme (SUP) in precincts with a higher density of seniors but which may not qualify for the NRP.
For private estates, Chee said the government was reviewing the Building Maintenance and Strata Management Act to better enable management corporations (MCSTs) to upgrade their developments.
Authorities were also studying how the Accessibility Fund can better support MCSTs in providing more inclusive infrastructure within condo developments, said Chee.
The fund, managed by the Building and Construction Authority, provides financial support to building owners to upgrade their development with more accessibility features.
'We have done quite a bit for public housing,' said Chee. 'But we are now exploring, because we also have seniors staying in older private estates, so we need to see how can we put in some of these support measures to meet their needs, and help our older private estates to rejuvenate and to keep the estate liveable for our residents.'
On the topic of 99-year leases, Chee said that HDB flats and most private properties are sold with 99-year leases 'to be fair to future generations'.
When the land returns to the state after its lease expires, it can be recycled to build new homes for future generations, said the minister. 'This helps to improve inter-generational mobility, and prevent our society from being split into property owners and those who are not, which will be unequal and socially divisive.'
It also allows housing estates to be 'rejuvenated and refreshed over time to better meet the evolving needs of successive generations', he said.
That is why measures are in place to discourage young homebuyers from purchasing properties with shorter leases that may not last them for life, said Chee. These include limits on loans for older properties with short leases remaining. 'The vast majority of HDB households have flat leases that cover the owners to age 95 or more.'