Latest news with #SelectiveEnblocRedevelopmentScheme
AsiaOne
a day ago
- Business
- AsiaOne
Compensation, rehousing options crucial to flat owners from older estates selling their flats under Vers, Singapore News
The size of the compensation package and rehousing options will weigh heavily in their decision to sell their HDB flats back to the Government under the Voluntary Early Redevelopment Scheme (Vers), elderly residents living in older estates have said. They were reacting to National Development Minister Chee Hong Tat's remarks in an interview that his ministry aims to use the current term of Parliament to develop the policy framework for the scheme. This includes identifying possible sites where the scheme will be first offered, ensuring that there are sufficient homes for those involved to relocate to, and working out a fair compensation package for residents whose flats are taken back early. Once the policy parameters are in place, Vers will be progressively offered to a 'few selected' sites likely from the first half of the next decade when the flats there are about 70 years old, Chee said. Vers was first announced by then-Prime Minister Lee Hsien Loong in 2018 to allow the Government to buy back flats nearing their 99-year lease by compensating residents and redeveloping the land. It addresses the issue of lease decay and the resulting decline in value of older flats. While Chee's comments on Aug 10 mark the Government's latest update on Vers, most of the 12 residents from older estates such as Ang Mo Kio and Bedok whom AsiaOne spoke to were unaware of what the scheme entails. Ang Mo Kio resident Claire Chiam said that she will consider the implications to her retirement nest if the Government offers to buy back her flat. The 70-year-old retiree moved into the three-room flat on Ang Mo Kio Avenue 10 a year ago. It was built in 1978. 'I don't know what's the arrangement, I hope it will not be like Sers (Selective En bloc Redevelopment Scheme) where the residents there still have to cough up cash to buy (a) similar-sized flat. And there were people not happy about it,' Chiam said. 'Unless it is for downgrading, Old people like us don't have that much cash and CPF already.' Unlike Sers, Vers is voluntary where residents will vote on whether the project goes ahead. In his interview, Chee said that the compensation terms for Vers will be less generous than those chosen under Sers, as the flats chosen will be older, and hence, less money. One Bedok resident, who wanted to be known as Tang, said she will be looking at the replacement homes offered before making a decision. 'If they are further from where I live right now, it will be at a disadvantage,' said the 63-year-old part-time retail assistant. Speaking to AsiaOne, Eugene Lim, key executive officer of ERA Singapore, said that implementing Vers is a 'significant undertaking' that requires 'sensitivity and prudence'. 'There are also concerns that compensation could be lower than under Sers. Therefore, this could lead to some older owners having to weigh the affordability of replacement homes carefully, and as a result, they may be reluctant to participate in Vers,' he said. 'This could, in turn, dampen participation and increase its complexity.' Since flats built in the 70s would have natural wear and tear that can make living conditions less attractive and comfortable, Lim said that these owners will be hoping that their blocks are identified for Vers. Chee said that several older estates were rapidly built in the 1970s and 1980s to meet the urgent housing demand. 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. Lim said that offering incentives, such as giving flat owners priority in selecting a replacement home within their current location, could lead to higher take ups for Vers. But Ang Mo Kio resident Ng Kim Wan said that the decaying lease of his 40-year-old flat is not an issue, and would rather stay there until the end of his life. The 75-year-old retiree said: 'Vers is good for the younger home owners to get a flat with a longer lease. It's not for older folks whose children are not living with us. 'I will have to adapt to living in a new flat, a new environment. And where can I find the money for renovation and furniture?' [[nid:721026]] Chingshijie@
Straits Times
4 days ago
- Business
- Straits Times
For Vers to work, compensation should account for varied needs of HDB flat owners: Observers
Sign up now: Get ST's newsletters delivered to your inbox Observers cautioned that the Vers scheme will need to address differing circumstances to be successful. SINGAPORE – Compensation for flat owners under the Voluntary Early Redevelopment Scheme (Vers) should account for the varied needs of current and future HDB residents, said policy experts in response to news that the scheme will be fleshed out in the next five years. These include, for example, seniors with insufficient savings for new homes, as well as multifamily households who may need larger or multiple replacement flats. Observers cautioned that the scheme, which National Development Minister Chee Hong Tat said on Aug 5 is likely to be launched in the first half of the 2030s , will need to address these differing circumstances to be successful. Under Vers, owners of HDB flats that are aged about 70 and up in selected precincts choose if they want their homes to be acquired by the Government for redevelopment, before their leases run out. Unlike the Selective En bloc Redevelopment Scheme (Sers) – a compulsory scheme where residents are compensated based on the market value of their flats when a project is announced – Vers terms will be less generous because the flats are older. Details of the Vers framework, such as the proportion of 'yes' votes needed for projects to proceed, have not been announced, and the compensation package is something Mr Chee said the Government will work on in its current term, which will end in 2030 at the latest. Sociologist Chua Beng Huat noted that households in Vers precincts have different needs, and also have differing financial capacities to pay for a new flat – whether a resale unit or a new replacement flat, should one be provided. Top stories Swipe. Select. Stay informed. Business Lower-wage retail workers to receive up to 6% pay bump from Sept 1 Singapore Keppel to sell M1's telco business to Simba for $1.43b, says deal expected to benefit consumers Singapore ST Explains: Who owns Simba, the company that is buying M1? Singapore ST Explains: What is Vers and which HDB estates could it be rolled out in? Singapore PM Wong's National Day Rally speech to begin at 6.45pm on Aug 17 Singapore Ong Ye Kung rebuts complaints about treatment of stallholders at Bukit Canberra Hawker Centre Singapore 'Incorrigible' sexual predator who preyed on children convicted for 4th time Sport Pool player Aloysius Yapp wins Florida Open for second career major For instance, he said, leaseholders will be of different ages, while their family members will also be at different stages of life, which makes the impact of Vers complicated and wide-ranging. Prof Chua, who is Emeritus Professor at the National University of Singapore's (NUS) Department of Sociology and Anthropology, said a 'one-size-fits-all' compensation policy may thus not work. He suggested that policymakers may instead have to consider the circumstances of each household to determine how they are compensated. Citing an example of how multifamily households living in kampongs were resettled into Housing Board flats in the past, Prof Chua suggested that it may be prudent to consider the circumstances of similar households undergoing Vers, where each family in these households are offered alternative housing based on their needs. He said family members of the older generation could be offered a smaller flat on a shorter lease, with the younger family members given the option of a separate flat on lease. Professor Sing Tien Foo, NUS Business School's provost chair professor of real estate, added that making Vers equitable for current and future flat owners is also complex. Noting that residents of Vers sites will receive less generous compensation terms than those of Sers projects, Prof Sing said that they should nevertheless not be worse-off than future owners of new flats built on Vers sites – these presumably will have fresh 99-year leases and come with the typical market subsidies priced into Build-To-Order flats. Referencing the goal of 99-year leases – to ensure that land can be recycled and used by future generations – sociologist Tan Ern Ser, an Adjunct Principal Research Fellow at the Institute of Policy Studies, said that Vers residents should not expect that their leases to be refreshed. 'Unfortunately, Singaporeans need to recognise that leasehold is leasehold,' said Dr Tan. 'A reset would render the leasehold meaningless.' Even if fresh 99-year leases are offered, some households, such as seniors with flats at the tail end of their current leases, may not have enough money to purchase a flat on the fresh lease, he said. Dr Tan instead said that a more reasonable scenario will be for leaseholders of Vers flats to be compensated for the remaining period of their leases and be given access to alternative housing arrangements with shorter leases. 'Without Vers, those who survive till the end of the 99-year lease will find themselves with no compensation and no housing,' said Dr Tan. 'This scenario is worse than having some compensation and an offer of affordable alternative housing,' he said.
Straits Times
4 days ago
- Business
- Straits Times
ST Explains: What is Vers and which HDB estates could the scheme be rolled out in?
Sign up now: Get ST's newsletters delivered to your inbox Singapore is aiming to roll out the scheme to a few sites in the first half of the 2030s. SINGAPORE - The Government will be focusing 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 what are the two schemes and what we know so far about Vers. 1. 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 when the project is announced, and the option to buy a new replacement flat nearby with a fresh 99-year lease. They are also given rehousing benefits such as a grant of $30,000 to buy a new flat. HDB previously said that about 5 per cent of flats are estimated to be eligible for Sers. To date, 80 Sers projects have been completed since 1995, while two are still in progress. Top stories Swipe. Select. Stay informed. Singapore Keppel to sell M1's telco business to Simba for $1.43b, says deal expected to benefit consumers Business Singtel, StarHub shares fall after announcement of Keppel's M1 sale Singapore ST Explains: Who owns Simba, the company that is buying M1? Business Lower-wage retail workers to receive up to 6% pay bump from Sept 1 Singapore PM Wong's National Day Rally to begin at 6.45pm on Aug 17 Singapore Hyflux sought other funding sources for Tuaspring as it had problems getting bank loans: Prosecution Opinion Trump's trade deals have one giant contradiction 2. What is Vers? Vers, which has yet to be rolled out, will allow owners of flats aged 70 years and older to vote for the Government to buy back their homes before their leases run out. It is the proposed solution to lease decay, which is the erosion of a flat's value as the end of its 99-year lease approaches. Vers was first announced by former prime minister Lee Hsien Loong in his National Day Rally speech in 2018. He said then that Vers would allow the authorities to redevelop older HDB towns in an orderly way - paced over two to three decades, rather than crammed in four or five years. 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. 3. 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 also added that the scheme has to be fair to the current generation of flat owners, as well as 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. 4. 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 the 1970s and 1980s 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 the HDB then. Some 419 blocks were completed in Bedok, 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. 5. 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. It will progressively scale up Vers by the late 2030s, with the aim to offer Vers to selected estates in different parts of Singapore, Mr Chee said. 6. 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 and was announced in April 2022. Some 606 households were affected. 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.
Straits Times
5 days ago
- Business
- Straits Times
First voluntary redevelopment projects for HDB flats likely to be launched in first half of 2030s
Sign up now: Get ST's newsletters delivered to your inbox National Development Minister Chee Hong Tat said that the public will be consulted on the Vers framework in this term of Government. SINGAPORE – The Voluntary Early Redevelopment Scheme (Vers) for Housing Board flats will likely begin with a few sites in the first half of the 2030s, said National Development Minister Chee Hong Tat in a long-awaited update on the scheme. Looking ahead, the Government will focus its efforts on Vers, with no plans for further projects under the Selective En bloc Redevelopment Scheme (Sers), he told local media outlets in an interview on Aug 5. Mr Chee also gave an update on Home Improvement Programme II, or HIP II, which refers to the second round of upgrades that HDB flats will undergo , to last flat owners till the end of their 99-year lease. Under both Sers and Vers, the Government takes back flats before the end of their 99-year lease to redevelop them and meet housing needs. While Sers is a compulsory scheme, which gives the Government full discretion on which HDB precincts to redevelop, Vers will involve home owners of selected precincts aged about 70 and up choosing if they want their homes to be acquired by the Government for redevelopment, before their leases run out. Under Sers – which began in 1995 – home owners are compensated based on the market value of their flats when a project is announced. The latest Sers project, which is currently ongoing, involves Blocks 562 to 565 in Ang Mo Kio Avenue 3 and was announced in April 2022. Top stories Swipe. Select. Stay informed. Singapore 55,000 BTO units to be launched from 2025 to 2027, will help moderate HDB resale prices: Minister Singapore Over 118,000 speeding violations in first half of 2025; situation shows no signs of improvement: TP Singapore Israel's plan to step up Gaza offensive dangerous and unacceptable: MFA Singapore Four men arrested in Bukit Timah believed to be linked to housebreaking syndicates Singapore Criminal trial of Hyflux founder Olivia Lum and five others starts Aug 11 Singapore Why some teens cook despite Singapore's da bao culture Singapore Man arrested over hacking attempt on RedeemSG portal Singapore 'We could feel the heat from our house': Car catches fire in Bidadari area The terms of Vers have not been finalised. Mr Chee on Aug 5 set out the timeline for its implementation, in the first significant update since Vers was announced at the 2018 National Day Rally . 'In this term of government, our aim is to develop and flesh out the Vers framework,' said Mr Chee, who took office in May following the general election. The next election must be called by 2030. This includes 'setting parameters to identify possible Vers sites, ensuring sufficient homes are ready in time for residents who are involved in Vers to relocate to, and working out a fair package for Vers residents', he said. 'Unlike Sers, which involves precincts with high redevelopment potential, there is less financial upside to Vers, because the flats will be older, and hence the terms will be less generous,' he added. Mr Chee said that before Vers is launched in the 2030s, the authorities will seek Singaporeans' views and feedback on the scheme. He noted that Vers is a 'very long-term, very complex policy that will not only have to be fair to the current generation of flat owners, but must also be financially sustainable for future generations'. Once the public consultation is over, Vers will start 'with a few selected sites', said Mr Chee, adding that this will likely take place in the first half of the 2030s. 'We will continually review our processes as we go along, and progressively scale up Vers by the late 2030s,' he said. 'Our plan is to progressively offer Vers to selected estates in different parts of Singapore.' Referencing then Prime Minister Lee Hsien Loong's 2018 rally speech, in which he explained that Vers will need to be implemented in stages, Mr Chee said the redevelopment of Singapore's older estates will have to take place in a 'measured and considered way'. Several older estates were rapidly built up in the 1970s and 1980s to meet the urgent housing demand then, Mr Chee noted. Should the leases of flats in these estates be allowed to run their full course, many residents will need to be relocated, and many homes built within a short time in the 2070s and 2080s. 'This will be very disruptive to residents who are staying in these towns,' he said, adding that it will hence be better for redevelopment to take place progressively over two to three decades. Examples of towns built in the 1970s and 1980s include Marine Parade, Ang Mo Kio and Bedok. 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. Block 6 Jalan Batu was completed in 1962, and its 99-year lease began on 1969. PHOTO: LIANHE WANBAO Mr Chee said that ideally, new flats for residents of Vers projects will be built not too far from their existing homes. Their existing precinct can then be redeveloped, and used to build new homes for residents of a subsequent Vers project, he said. 'That's why you need to do this in stages, to avoid this massive disruption to the entire town, especially in towns where there are many, many flats that are about the same age,' said Mr Chee. Home Improvement Programme II On HIP II, Mr Chee said works undertaken will be more extensive than the current HIP, which takes place about 30 years after flats are built and includes improvements such as upgraded toilets and repairs to spalling concrete. He said this is because flats will undergo HIP II at the 60- to 70-year mark. These older units hence require more work. For instance, said Mr Chee, the corrosion-resistant repair method that was rolled out for spalling concrete repairs under HIP in 2024 will be adopted 'more extensively for older flats undergoing HIP II'. New solutions that are not currently in HIP will also be explored for HIP II, he said. Mr Chee cited new detection technologies, such as using microwave scanning to identify concrete spalling that cannot be seen from the surface, or to narrow down the path of water seepage. He added that HDB has used this technology in some real-life cases, and is currently analysing results so that it can be used for HIP II. Mr Chee said HIP II and Vers are not mutually exclusive – meaning flats could undergo HIP II and subsequently be offered Vers. As Vers projects will be spread out over two to three decades, there may still be a need for flats to undergo HIP II when they are around 60 years old, so they remain liveable until they are redeveloped under Vers – should they come under the scheme, he said. More details on HIP II will be announced at the next Budget debate in 2026, he added.
AsiaOne
30-07-2025
- AsiaOne
Love scam: Man transfers $120k to online 'China girlfriend' of 2 years after sale of Ang Mo Kio flat, Singapore News
Convinced by his online 'girlfriend' to live out his retirement years in China with her, a man reportedly gave up his HDB flat and transferred over $120,000 to her. With just a few thousand left in his bank account and nowhere to go, he sought help from a friend, who told him he had fallen for a love scam. Chen (not his real name), 59, told Shin Min Daily News that he met his 'lover' on Facebook in 2023. The woman claimed to be divorced and in her 30s, and said she is from Hangzhou. An internet romance bloomed between the pair, who started calling each other "wife" and "husband". A few months after they started dating, Chen's 'girlfriend' said she was experiencing financial difficulties and asked if he could lend her money. "It started with a few thousand dollars," he recalled. "She said she needed it for living expenses, and as a couple, helping each other is normal." He added that the woman would sometimes cry when telling him about her life hardships. Suggested he sell his flat Over time, Chen had sent her $30,000 to $40,000 of his savings. Then, the woman suggested he sell his Ang Mo Kio flat and move to China to live with her. According to Shin Min, Chen returned his three-room flat under the Selective En bloc Redevelopment Scheme (Sers) scheme and received compensation of about $123,000. He wired this sum to his 'girlfriend' across several bank transfers within the span of a year, even as bank staff reportedly tried to intervene. Chen told the Chinese publication that the bank had called to warn he could be a victim of fraud, but he had insisted he was making transfers to a friend. He said his transfer limit was reduced to $200 a day, so he would withdraw cash at the bank and transfer the money at an ATM. "I was so obstinate then. Thinking back now, it was childish," he said. The scam started to become obvious when Chen's 'girlfriend' cut off contact with him this April, claiming that her grandmother had died and she must observe a six-month mourning period. She had also deleted some of their chat records. Chen's friend, whom he had sought help from, persuaded him that it was a love scam, showing him reports of similar cases. The man said he finally lodged a police report on July 21 and decided to share his story to raise awareness. The police confirmed to Shin Min they had received a report and are investigating. Chen also said he will search for a new job to support himself and rent a flat, to avoid troubling his friend for a long time. "The money is already gone, and I can't change what happened, there's no point in regretting. I caused this; I was blinded by love," he expressed. "I can still work now, so I'll work hard to earn the money back and recover." [[nid:681697]]
