Grants and Allowance under Selective En Bloc Redevelopment Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns Mr Yip Hon Weng's inquiry regarding the establishment, review frequency, and adequacy of the $30,000 grant and $10,000 removal allowance under the Selective En Bloc Redevelopment Scheme (SERS). Minister for National Development Desmond Lee explained that HDB reviews benefits packages holistically before each exercise, using market valuations for compensation while freezing replacement flat prices at the announcement date. He noted that removal allowances factor in professional moving costs, and the Optional Component Scheme helps residents manage renovation expenses through CPF or housing loans. Minister for National Development Desmond Lee emphasized that the Ministry monitors economic conditions and market expenses closely to review grants and allowances as and when necessary. These policies aim to ensure that SERS residents can afford suitable replacement housing that meets their specific financial needs and budgets.
Transcript
38 Mr Yip Hon Weng asked the Minister for National Development (a) when were the $30,000 grant under Selective En Bloc Redevelopment Scheme and $10,000 moving allowance established; (b) how were these figures arrived at; (c) how often are these figures reviewed; and (d) does the Ministry take into account the prevailing economic situation to ensure that the grants and the moving allowance will be in line with the current market expenses at the time when the residents move into their new place.
Mr Desmond Lee: Before the announcement of a SERS exercise, HDB reviews the entire benefits package for residents holistically. Including the compensation value of the existing flats and other benefits, residents under SERS will generally be able to afford replacement flats.
Under SERS, flat owners are compensated for their existing flats based on the prevailing market values at the time of the SERS announcement. The SERS grant of up to $30,000 for eligible households provides added financial help for residents to purchase a replacement flat.
SERS flat owners can, then, use their total compensation to decide on a rehousing option that best suits their needs and budget. They may buy a new flat at the designated replacement site at a subsidised price, which is also frozen at the point of the SERS announcement date, or a subsidised new flat elsewhere, offered in HDB's public sales exercises.
In addition, residents will receive payment for reasonable expenses, comprising a removal allowance and stamp, and legal fees for the purchase of a replacement flat. MND does review the removal allowance, taking into account factors, such as the cost of engaging movers, which is typically between $300 and $500 per truck load. To minimise the need for renovations, SERS flat owners can opt for fittings and fixtures to be installed in their new flat under the Optional Component Scheme (OCS). The cost of OCS will be incorporated into the flat price, which can be paid via CPF monies and/or housing loan, thus reducing the cash outlay needed for renovations. We continue to monitor the costs closely and will review the grant as and when needed.