Plans to Offer Voluntary Early Redevelopment Scheme to Residents before 2039
Ministry of National DevelopmentSpeakers
Summary
This question concerns Mr Gerald Giam Yean Song's inquiry on the implementation timeline, voting thresholds, and compensation terms for the Voluntary Early Redevelopment Scheme (VERS). Minister Desmond Lee responded that VERS is a long-term plan for flats aged 70 or older, requiring a precinct vote to proceed with a government buyback for redevelopment. He clarified that VERS terms will not be as generous as the Selective En-bloc Redevelopment Scheme (SERS) due to lower redevelopment potential and smaller financial upsides. The government is currently refining details regarding precinct identification, fiscal sustainability, and voting thresholds while intending to seek public feedback during the planning process. Further information will be shared once the specific policy framework, rehousing options, and pacing for the orderly rejuvenation of estates are finalized.
Transcript
42 Mr Gerald Giam Yean Song asked the Minister for National Development (a) whether the Government has plans to offer Voluntary Early Redevelopment Scheme (VERS) to any precincts before the year 2039; and (b) what is the voting threshold that needs to be achieved for a precinct to be selected for VERS.
43 Mr Gerald Giam Yean Song asked the Minister for National Development what will be the terms of offer, including the compensation quantum, rehousing options and other benefits, to be provided to lessees of HDB flats selected for the Voluntary Early Redevelopment Scheme.
Mr Desmond Lee: The Voluntary Early Redevelopment Scheme (VERS) will be implemented in the longer term, as HDB flats and estates get older, to facilitate the orderly redevelopment and rejuvenation of these towns and estates. This will also allow more households to benefit from redevelopment before their flat leases expire, starting from when the flats reach around age 70 or older.
Unlike SERS, VERS will be a voluntary programme and residents will vote on the exercise in their precinct. If residents in a selected precinct vote in support of VERS, the Government will buy back all the flats and redevelop the precinct and residents can use their sales proceeds to help pay for another flat. If the residents do not support VERS, they can continue to live in the precinct until their flat leases run out. The terms of VERS will not be as generous as SERS due to the lower redevelopment potential and, hence, smaller financial upside from the redevelopment.
VERS is a complex undertaking, involving detailed long-term town planning. We are in the midst of working out the details, such as how to identify the precincts, how to pace the redevelopment over time, the specific terms of the Government’s offer, the voting threshold that needs to be achieved for a selected precinct to proceed with VERS, and how to ensure fiscal sustainability in the long run. We will seek ideas and views from the public in the process and will share more information with Members and Singaporeans when we are ready.