Response To VERS To Depend On Govt’s Offered Price For HDB Flats

Government has implemented the voluntary early redevelopment scheme (VERS) for residents to undergo via a voting system, for their households before their leases run out. The property experts mentioned how the response of HDB homeowners to this newly implemented scheme that it will depend on its particulars.

According to the ZACD Group executive director Nicholas Mak, it also depends on how it will be implemented and how much flat owners will be reimbursed.

Singapore University of Social Sciences economics professor Walter Theseira state his view that the offered price will be the key consideration. Nonetheless, this scheme has the capability of funding itself if there is a scenario of the prices offered to HDB homeowners are “not unreasonably high”.

Other factors that needs to be taken into consideration and will need to be worked out is the government’s requirement for selecting an HDB precinct to undergo VERS and the pacing of redevelopments, as well as the authorities’ rules and guidelines.

On the 19th of August 2018, Prime Minister Lee Hsien Loong publicized many new plans for HDB flats. Among all these initiatives, is VERS that will empower HDB homeowners to have the freedom of voting if they intend to sell their HDB flats to the government when the building reaches its 70th year of development. It is foreseen that the offered price is less than what is offered for the mandatory Selective En bloc Redevelopment Scheme (SERS).

Even though CIMB economist Song Seng Wun and MP Alex Yam deduced that the predominant rules on en bloc sales of private properties could be used to steer the direction for the scheme, it was served as a warning that HDB homeowners should not assume to profit from VERS as it could be like the scenario of the collective sales.

According to the Chairman of the Government Parliamentary Committee for National Development, it is likely to expect that there are more requirements that will be closely linked with VERS. Besides, they did not intend to have cooling measures so that VERS is able to take control. If there were cooling measures, the private en bloc market will be moderated.

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He emphasized that there is ample time for the residents to voice out their feedback and for the government to work out on the details of its particulars. The public can anticipate the official implementation of the scheme in two more decades.

On the other hand, there are some alternative perspectives such as International Property Advisor chief executive Ku Swee Yong dread that VERS could possibly bring up the cost of HDB resale flats, which means it will drive residents to set at higher prices even for units whose leases are nearing its end.