VERS was announced almost four years ago, during the Prime Minister’s National Day Rally Speech in 2018. So far, we have yet to hear any substantial details of the scheme. Many HDB flats are fast ageing, with some already over 60 years old. This means that we have less than 10 years before some flats will be 70 years or older. Nevertheless, the Government said in 2018 that VERS would be launched in “about 20 years’ time” (ie, the year 2038).
Earlier this week (5 Jul 2022), I asked the Minister for National Development two Parliamentary questions on the Government’s plans and timeline for offering VERS. In his answer, the Minister said that the Ministry is still in the midst of working out the details. Read on for the full Q&A.
PLANS TO OFFER VOLUNTARY EARLY REDEVELOPMENT SCHEME TO RESIDENTS BEFORE YEAR 2039
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.
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.
