Singapore aims to finalise the framework for the Voluntary Early Redevelopment Scheme (VERS) within the current term of government, which runs until September 2030. The scheme, first announced in 2018, is intended to rejuvenate older Housing Board (HDB) estates and provide residents with options before leases approach expiry.

National Development Minister Chee Hong Tat, in his first major interview since taking office in May, said the government is working out key details — such as identifying potential sites, ensuring sufficient replacement homes, and designing “fair” packages for affected residents.

VERS will begin with a small number of selected precincts in the first half of the next decade. Unlike the Selective En bloc Redevelopment Scheme (SERS), which is compulsory and limited to sites with high redevelopment potential, VERS will be offered when flats reach around 70 years of age, with residents voting on whether to proceed.

Mr Chee noted that VERS is unlikely to offer the same financial upside as SERS, since flats involved will be older. Nevertheless, the scheme is seen as essential to avoid the disruptive scenario of mass lease expiries in the 2070s and 2080s. Redevelopment will be staged progressively over 20 to 30 years.

Balancing VERS with HIP II

While VERS is still being developed, the government is also enhancing the Home Improvement Programme (HIP) to ensure older flats remain liveable. HIP II, which kicks in when flats reach 60 to 70 years old, will be “more extensive” than the current programme.

It will use new technologies such as microwave scanning to detect hidden spalling concrete and advanced corrosion-resistant repair methods. Mr Chee said these measures will allow flats to remain safe and comfortable until the end of their leases, even for residents in estates that do not opt into VERS.

Importantly, HIP II and VERS will not be mutually exclusive. Some flats may undergo upgrading under HIP II before eventually entering VERS.

Support for Private Estates

The government is also looking at ways to help ageing private estates remain liveable. This includes extending programmes like the Enhancement for Active Seniors (Ease) — which provides subsidised senior-friendly fittings — to private properties until 2028.

Authorities are also reviewing the Building Maintenance and Strata Management Act to better support condominium management corporations (MCSTs) in upgrading ageing facilities. However, government funding will be limited to shared and inclusive infrastructure, unlike public housing estates where amenities are open to all.

A Long-Term Undertaking

VERS is a complex and long-term policy, and Mr Chee emphasised that there is no need to scale it up until the late 2030s. Still, government agencies have already started laying the groundwork, and public engagement will be sought once policy parameters are established.

“Our plan is to progressively offer VERS to selected estates in different parts of Singapore,” Mr Chee said. “This way, we can renew our older estates in an orderly manner, while ensuring Singaporeans continue to have quality homes to live in.”

Challenges of VERS

While VERS (Voluntary Early Redevelopment Scheme) offers an option for ageing HDB towns, flat owners are likely to face several challenges:

1. Uncertainty over Financial Compensation

• VERS packages are expected to be less generous than SERS because flats will be much older.

• Owners may worry whether compensation is sufficient to buy a comparable replacement home, especially in mature estates where prices are higher.

2. Market Value vs. Emotional Value

• Unlike SERS (where compensation is pegged to market value at announcement), VERS terms are not yet fully clear.

• Long-time residents may feel the payout undervalues their flat, especially if they have invested in renovations or have sentimental attachment.

3. Affordability of Replacement Homes

• Even with subsidies, upgrading to a newer flat may require additional cash or loans.

• Elderly owners nearing retirement might face challenges in financing a new purchase.

4. Disruption of Relocation

• Residents will need to move out of their familiar estates. This could be disruptive, especially for seniors who value community ties and proximity to amenities.

5. Uncertainty on Timing

• Owners may face long waiting periods and uncertainty about when (or if) their precinct will be offered the scheme.

6. Voting Outcome Risk

• VERS requires a majority vote by residents. Even if some owners want to take up the scheme, it may not proceed if overall support is lacking.

7. Impact on Resale Market

• For flats approaching 70 years, resale demand may weaken as buyers anticipate lease decay or uncertain VERS terms.

• Owners could face lower resale values before any VERS is confirmed.

In short: the main challenges are financial sufficiency, relocation stress, uncertainty of timing and voting outcomes, and potential impact on resale value.