ST Explains What is Vers and which HDB estates could be the first selected sites

The Government will focus 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.

- Isabelle Liew

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 the two schemes and what is known about Vers so far.

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 at the time the project is announced, and given the option to buy a new replacement flat nearby with a fresh 99-year lease. They also receive rehousing benefits, such as a $30,000 grant to buy a new flat.

HDB previously said that about 5 per cent of flats are estimated to be eligible for Sers.

Since 1995, 80 Sers projects have been completed, while two are still in progress.

WHAT IS VERS?

Vers, which has yet to be rolled out, will allow owners of flats aged 70 years and older to vote on whether the Government should buy back their homes before their leases run out.

It is the proposed solution to lease decay—the erosion of a flat's value as the end of its 99-year lease approaches.