Voluntary Early Redevelopment Scheme (Vers) must not create a lottery effect or evolve into a wealth-generating programme, Minister for National Development Chee Hong Tat told Parliament on 24 September.
He was addressing questions from Members of Parliament (MPs) regarding compensation arrangements and the policy rationale behind the scheme’s design.
Questions raised on compensation and affordability
Non-constituency MP from the Workers’ Party, Andre Low, asked how the Ministry defines and quantifies less generous compensation terms under Vers compared to the Selective En bloc Redevelopment Scheme (Sers).
He also sought clarity on safeguards for homeowners whose Vers compensation might fall below outstanding mortgage amounts, the projected cash top-ups required for replacement housing, and why compensation under Vers is structured less generously than Sers.
Low pressed further on how this approach would prevent wealth creation while preserving housing affordability, and how residents could be assured that Vers would remain an orderly renewal programme.
Tanjong Pagar GRC MP Foo Cexiang raised concerns over whether applying Vers to selected Housing and Development Board (HDB) precincts could still produce a lottery effect, and asked if the Ministry could extend the scheme to cover all HDB flats.
Key differences between Vers and Sers
In response, Chee explained that Sers was reserved for selected precincts with high redevelopment potential, involving compulsory acquisition of flats. Vers, by contrast, is designed to phase out older housing estates over time and operates on a voluntary basis.
He stated that flats offered Vers will generally have shorter remaining leases compared to those under Sers. As a result, overall compensation for Vers participants will be lower than under Sers.
Chee stressed that details of the compensation package are still being worked out. Valuations will vary by site and unit, similar to today’s flat valuations, and the Ministry of National Development (MND) is studying options for relocation support across different demographics.
Purpose of phased redevelopment
Addressing Foo’s query on whether Vers should apply universally, Chee said its primary aim is to redevelop towns with large numbers of older flats built in close succession.
By carrying out redevelopment in phases, the Ministry seeks to reduce disruption for residents and local businesses.
“It is not necessary for every older flat to undergo Vers,” he explained, noting that widespread application could lead to excessive upheaval for residents. He also highlighted that as a voluntary scheme, residents in selected precincts may collectively decide not to proceed.
Those who do not participate may remain in their homes until the lease expires.
Chee said the government would continue to maintain liveability in such estates through initiatives such as the Home Improvement Programme II, the Silver Upgrading Programme, and the Neighbourhood Renewal Programme.
Concerns for seniors and mortgages
Low raised the concern that many affected residents could be seniors intending to live in their flats for the rest of their lives.
He asked what measures would ensure they are not left with outstanding mortgages or forced to use retirement savings for replacement accommodation.
Chee responded that the guiding principle is for individuals to purchase homes that last them for life. By the time flats reach eligibility for Vers—after at least 70 years—mortgages should typically be fully paid.
He added that “upfront gatekeeping” is important to reduce the number of households unable to remain in their homes until the end of their leases.
Shift from Sers to Vers
Chee first announced in August 2025 that the government would not continue Sers, shifting instead to Vers as the main redevelopment option.
Vers will apply to flats about 70 years old and is expected to take effect from the first half of the 2030s.
The government will develop a framework for identifying potential sites, preparing sufficient replacement housing in advance, and ensuring a fair compensation package for affected residents.
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