The Multi-VERS of SERS
NJ: Recently, there’s been a lot of buzz about VERS — the Voluntary Early Redevelopment Scheme — after Minister for National Development Chee Hong Tat’s interview. He mentioned that no further SERS projects are planned, and the VERS framework will only roll out in the 2030s.
TK: Yes. VERS was first announced by then Prime Minister Lee Hsien Loong at the 2018 National Day Rally. The idea is to redevelop older HDB towns in an orderly way over two to three decades.
NJ: Many property seekers may now be wondering — what does this mean for me? Should I look at older flats in hopes of a SERS-like windfall? What’s the real impact of VERS on the resale market?
TK: First, let’s be clear on the differences between SERS and VERS. Compensation under VERS is expected to be less generous than SERS. Second, VERS requires approval — it may not even proceed if residents don’t vote for it. For reference, HDB’s Home Improvement Programme (HIP) needs at least 75% of eligible households to say yes. With no details yet on the compensation and voting process, it’s risky to speculate about windfall gains.
NJ: Agreed. Buyers should still make decisions based on their own needs and affordability, not the hope of a future payout.
TK: Exactly. Remember, when flats reach the VERS stage, they’ll already be more than 70 years old, so their lease value is low. That said, VERS does offer assurance. It could slow the depreciation of older flats and stabilise prices, giving some peace of mind to owners.
Case Study 1: A retired couple in Toa Payoh worry about the value of their 40-year-old flat. While they know it won’t appreciate much further, the possibility of VERS gives them comfort that their home won’t become “worthless.” They plan around retirement needs rather than speculative gains.
NJ: True. On top of that, the government has announced HIP2, which will maintain liveability for ageing flats. While younger buyers may weigh the tension between mature estates with established character versus long-term uncertainty, older households or singles may see viable options, especially under schemes like Lease Buyback or Silver Housing.
Case Study 2: A single buyer in her 40s opts for an older resale flat in Bukit Merah because it’s near her parents and has strong community ties. She isn’t banking on VERS, but values affordability and proximity. If VERS eventually happens, that’s a bonus, not her main motivation.
TK: Beyond VERS, policy changes — like lowering the singles’ age limit, removing the 15-month wait-out period for former condo owners, and raising income ceilings — will all affect demand differently. Some measures boost resale demand, while others may shift buyers back to BTOs.
NJ: Which is why buyers should focus on short-term needs (say, the next five years), especially given today’s economic uncertainty. Over the longer term, VERS is about reducing market volatility and ensuring sustainable housing renewal.
Case Study 3: A young couple with a toddler decide to go for a BTO in Tengah instead of an older flat. While tempted by the character of mature estates, they decide predictability and subsidies matter more for their stage of life.
TK: Exactly. VERS helps the government manage supply in the 2070s–2080s when many leases would otherwise expire at once. But challenges remain: the compensation structure, the voting threshold, and whether the scheme applies by block or by precinct.
NJ: And let’s not forget community dynamics. Older residents with limited mobility may resist relocation, so consensus won’t always be easy.
TK: That’s where grassroots committees could help mediate differences and maintain community spirit.
NJ: So to wrap up, property seekers shouldn’t speculate on VERS gains. Focus on your affordability and housing needs now.
TK: For younger households, BTOs remain a strong option if timelines allow. For older households, VERS may provide a safety net, but leases will still depreciate — so retirement planning and capital recycling remain critical.
🩺 Key Takeaways
VERS ≠ SERS — Compensation will be smaller, and projects need majority approval.
Don’t speculate — Buy based on affordability and needs, not on potential windfalls.
Older flats get support — VERS slows lease decay, while HIP2 ensures liveability.
Policies shape demand — Singles’ age and wait-out changes lift resale demand; higher income ceilings may push buyers toward BTO.
Match to life stage — Retirees may find reassurance in VERS, singles can prioritise lifestyle, and young families may prefer BTO predictability.
