Vers should not create a lottery effect or become a wealth-generating programme: Chee Hong Tat
MND is studying details such as the voting process for the scheme and how to support residents across various demographics with relocation options
[SINGAPORE] The Voluntary Early Redevelopment Scheme (Vers) should not create a lottery effect or end up becoming a wealth-generating programme, said Minister for National Development Chee Hong Tat in Parliament on Wednesday (Sep 24).
He was responding to questions raised by two Members of Parliament on concerns regarding the roll-out of Vers and its compensation terms.
Tanjong Pagar GRC MP Foo Cexiang asked if the selection of only some Housing & Development Board (HDB) precincts for Vers would result in a lottery effect.
Workers’ Party’s Andre Low asked how the Ministry of National Development (MND) defines and quantifies the “less generous compensation terms” of Vers, as compared with the Selective En bloc Redevelopment Scheme (Sers), and what safeguards will protect homeowners whose Vers compensation could be lower than their outstanding mortgage.
He also asked what the projected median cash top-up required was for affected households looking to move into replacement homes.
Low also questioned how the shift away from Sers would support the goal of long-term housing affordability, and if the ministry can assure that Vers will serve as an orderly renewal programme and not a wealth-generating one.
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In response, Chee said: “Sers is for selected precincts with high redevelopment potential, unlocked through compulsory acquisition. In contrast, Vers is to space out the redevelopment of older towns over time and it will be voluntary in nature.
“Flats offered Vers will have shorter remaining leases compared to the flats which were previously offered Sers; so the overall compensation for Vers flats would be lower compared to Sers.”
Chee added that MND is working out the details of the compensation package for affected residents.
He said: “Just as how the valuation of flats varies today, the compensation amount would similarly vary across different Vers sites and flats.”
MND is also studying details such as the voting process for Vers and how to support residents across various demographics with relocation options, Chee noted.
Broader roll-out
Foo also asked the ministry if it could roll out Vers to all HDB flats.
Chee said that the primary purpose of Vers is to facilitate the redevelopment of towns where many older flats were built within short periods of time, and to allow redevelopment works to be carried out in phases so that it would be less disruptive to residents and heartland businesses.
He added: “Based on this approach, it is not necessary for every older flat to go through Vers, as we are mindful of the disruption to our residents who would need to relocate when their flats undergo Vers. In addition, Vers – as the V suggests – is voluntary, so there could be instances where residents who are offered Vers collectively decide not to proceed.”
Residents who opt not to go through Vers can continue to stay in their flats until the leases run out, Chee said.
“The government will support them in other ways to keep their flats and estates liveable and vibrant, including through upgrading programmes like HIP II (Home Improvement Programme II), Silver Upgrading Programme and Neighbourhood Renewal Programme,” he added.
In a supplementary question, Low said that many residents of flats going through Vers will probably be seniors who intend to live there for the rest of their life.
He asked how the government will ensure that such seniors are not left with outstanding mortgages that the Vers compensation cannot cover, nor forced to deplete their retirement savings for placement accommodation.
Chee replied that the hope is that people “buy homes that can last them for life”, so that when flats become eligible for Vers, “which will be at least 70 years or more... hopefully they would have already paid off their mortgages”.
“Upfront gatekeeping” is crucial to minimise the number of people who cannot stay in their homes till the end of their lives, he added.
Chee first announced in August 2025 that the government does not plan to continue Sers but instead will focus on Vers.
Vers will apply to flats that are around 70 years old and is expected to be implemented from the first half of the 2030s. The government will also develop a framework for Vers, which involves setting parameters to identify possible sites, ensuring that sufficient homes are ready in time for the relocation of residents who are involved in the scheme, and working out a fair package for such residents.
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