Vers should not create 'lottery effect' or be a wealth-generating programme: Minister

Compensation packages for Vers will be lower than those for Sers: Chee Hong Tat

- Ng Keng Gene

The Voluntary Early Redevelopment Scheme (Vers) should not create a “lottery effect” or end up becoming a wealth-generating programme, said National Development Minister Chee Hong Tat on Sept 24.

He was responding to questions from Mr Foo Cexiang (Tanjong Pagar GRC) and Workers’ Party Non-Constituency MP Andre Low on the scheme, which facilitates the redevelopment of selected Housing Board precincts before their 99-year leases end.

Mr Chee said he agreed with the views of both MPs about Vers — Mr Foo had asked if the scheme would have a lottery effect, while Mr Low sought assurance that it would primarily be an orderly renewal programme, and not a wealth-generating one.

The minister emphasised that compensation packages for Vers will be lower than those offered under the Selective En bloc Redevelopment Scheme (Sers).

HDB residents whose flats were acquired under Sers could purchase a new flat ona fresh 99-year lease at a replacement site before their existing leases expired, often at little to no extra cost.

This led many HDB dwellers to view Sers as a “guaranteed” windfall, and at one point a number of HDB flats with short remaining leases changed hands for high prices in the resale market, possibly to reap benefits of the scheme.

Mr Chee noted that Sers is a compulsory scheme for selected precincts with high redevelopment potential, while Vers is to space out the redevelopment of older towns over time and will be voluntary.

“Flats offered Vers will have shorter remaining leases compared with the flats which were previously offered Sers, so the overall compensation for Vers would be lower compared with Sers,” he said, adding that his ministry is working out details of the compensation package.