Housing and Development Board (HDB) has announced that Blocks 562 to 565 in Ang Mo Kio Avenue 3 will be renewed Selective En bloc Redevelopment Scheme (SERS). This is the first such announcement in almost four years.
HDB said that more than 600 households will be affected by the move. The four blocks comprise mainly three-room and four-room HDB flats which are 15-minutes walk from Ang Mo Kio MRT station.
The affected flats are about 43 years old and flat owners will be offered new replacement flats ranging from two-room flexi to four-room units at Ang Mo Kio Drive.
The replacement flats come with a fresh 99-year lease, and eligible flat owners may receive a SERS grant of up to S$30,000. They can also apply for a housing loan from HDB for the purchase of their replacement flat.
Construction of the replacement flats at Ang Mo Kio Drive will commence in the third quarter of 2023 and is estimated to be completed by the third quarter of 2027.
The last SERS project was in MacPherson, announced on May 31, 2018.
HDB flat owners will be compensated based on the market value of their flat as assessed by a professional private valuer appointed by the statutory board.
In addition, HDB will also pay flat owners a S$10,000 removal allowance, as well as the stamp and legal fees for the purchase of a comparable replacement flat.
"The latest SERS announcement in Ang Mo Kio will enable existing residents of the four blocks to move into new homes nearby, and also offer opportunities for other flat applicants to apply for the surplus flats at the replacement site," HDB said.
Generally, SERS is offered to HDB blocks located in sites with high redevelopment potential.
"First-time home-buyers are advised to do their due diligence by checking HDB resale price and choosing a flat with a sufficient lease to last them a lifetime if they do not plan to move again. The average life expectancy of Singaporeans is 85 years so they should buy flats with leases that cover them until the age of 95," said ERA Associate Division Director, Andy Chia Jin Tai.
If the remaining lease of the HDB flat is at least 20 years and it can cover the youngest buyer to the age of 95, the buyer can use CPF to pay for the property up to the Valuation Limit.