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Straits Times
10 hours 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
13 hours 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.
AsiaOne
2 days ago
- Business
- AsiaOne
Vers likely to be launched in next decade: Chee Hong Tat , Singapore News
The Voluntary Early Redevelopment Scheme (Vers) — a proposed Government buyback programme for Housing Board flats nearing the end of their 99-year lease — will 'likely happen' in the first half of 2030s, said Minister for National Development (MND) Chee Hong Tat. In a wide-ranging interview with the local media on Aug 5, Chee said that his ministry will use the current term of Parliament of up to five years to 'develop the policy framework and parameters' for Vers. 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. 'We do not need to scale up Vers until sometime in the late 2030s when the older flats reach their 70-year mark,' said Chee, who was appointed MND minister on May 23. 'When we are ready, MND and HDB will engage Singaporeans on the framework and policy parameters to take in further and feedback. Our plan is to progressively offer Vers to selected estates in different parts of Singapore." Asked about the possible issues Vers would bring, Chee said that he is mindful of the need to stagger re-development to prevent disruptions to residents living in the same estate. 'We don't want to end up in a situation where flats that are all about the same age… you end up having to do Vers for all of them at the same time,' he said. Chee's remarks echoed then-Prime Minister Lee Hsien Loong's when he first announced Vers during the 2018 National Day Rally as a scheme to address the issue of lease decay and the resulting decline in value of older flats. He said then that several older estates, such as Marine Parade, Ang Mo Kio and Bedok, were built in a 'tremendous rush' in between 1970s and 1980s to meet the housing shortage at that time. 'Therefore, if we do not plan ahead, 99 years later, all the leases in such towns will expire around the same time… and will be returned to the state in a few years,' added Lee. 'We will have to find new homes for a lot of people at once.' Chee said that the compensation terms for Vers will be less generous than those chosen under Selective En-Bloc Redevelopment Scheme (Sers) as the flats chosen will be older, and hence, less financial upside. The most recent flats selected for Sers were 606 units in Blocks 562 to 565 at Ang Mo Kio Avenue 3 in April 2022. This decision sparked discontent among several residents, who were concerned about having to pay more for a similarly sized replacement flat. Only around five per cent of all HDB flats are suitable for Sers, according to MND. Chee said that MND will 'focus our efforts and resources on Vers', adding that there are no plans to identify HDB blocks for compulsory acquisition and re-development through Sers. Second round of HIP for older flats Separately, Chee announced that flats which had undergone Home Improvement Programme (HIP) will receive another round of structural upgrades and improvements. The minister said that these flats, which had been spruced up through the programme when they were about 30 years old, 'should be good for another 30 to 40 years before they start to show their age again'. Launched in 2007, the Government has spent about $4 billion on the HIP, upgrading close to 381,000 ageing flats as of March 2024. Chee said that the upgrades to flats through HIP II will be 'more extensive' to last till the end of their 99-year lease. These include adopting 'enhanced solutions' for spalling concrete, employing corrosion resistant repairs to older flats, and using microwave scanning to identify spalling occurring underneath the concrete surface. 'This will enhance the durability of repairs and help to improve the liveability of our older flats,' said Chee. Spalling concrete is a common issue for older buildings, especially in areas with damp conditions such as kitchens and toilets, according to HDB's website. The issue is largely caused by carbonation, a natural deterioration process that causes steel reinforcement bars in the ceiling to corrode and the concrete to crack. He added that more details about HIP II will be announced during his ministry's Budget debate in 2026. When asked if residents will be offered either HIP II or Vers, Chee said that it will not be the case. Since flats that undergo Vers will be over two to three decades, the minister added that there may still be a need for flats to undergo HIP II from around the 60-year mark to ensure that they remain liveable. It is also possible that residents who are offered to sell their flats to the Government through Vers may not choose to do so, and stay until their leases run out. 'The Government will support them in other ways to keep their flats and their estates liveable and vibrant, including through upgrading programmes like HIP II, Silver Upgrading Programme and Neighbourhood Renewal programme,' said Chee. Chingshijie@
Straits Times
2 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.
Business Times
2 days ago
- Business
- Business Times
No more Sers for older HDB estates for now, but voluntary scheme likely to begin in the 2030s
[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'. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up 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.'
