SINGAPORE: Singapore Democratic Party (SDP) chairman Paul Tambyah has raised concerns over the continued lack of clarity regarding the Voluntary Early Redevelopment Scheme (VERS), even though it has been seven years since the scheme was announced.
VERS was the highlight of ex-Prime Minister Lee Hsien Loong’s 2018 National Day Rally speech. The announcement gave some relief to homeowners who were grappling with the revelation that most 99-year leasehold properties would not be eligible for the Selective En bloc Redevelopment Scheme (SERS) and would simply revert to the government at the end of their leases, with no guaranteed compensation for the loss of their property or the value of their homes.
The introduction of VERS was meant to alleviate some of these fears by providing an alternative that would allow homeowners of older properties to voluntarily redevelop their flats before their leases expired, but to date, the specifics of how the scheme will work remain unclear.
But seven years on, details on what the terms of offer eligible homeowners could receive remain unavailable. An explainer article published by the Government in October 2024 simply states, “Terms will be less generous than SERS. More details to come.” No timeline has been offered as to when these details will be disclosed, leaving many homeowners in a state of uncertainty.
Non-Constituency Member of Parliament Leong Mun Wai raised this issue in the House last week. The Progress Singapore Party (PSP) member pressed current Prime Minister Lawrence Wong on VERS but Mr Wong only replied that more details would only be released closer to the time when the first flats under VERS are due for redevelopment and will not be announced anytime soon.
He instead emphasized that the rise in flat prices, driven by the growth in incomes and living standards, has benefited homeowners, providing them with a valuable asset for retirement. The PM said, “That’s what home ownership provides, a concrete stake in our nation’s progress, and not just that, but eventually a home and a nest egg, which you can tap on for retirement. It’s a sound and a key pillar of our social compact which we will continue to improve and enhance and build upon.”
Thanking Mr Leong for raising this issue, Prof Tambyah pointed out on Facebook: “Seven years ago, many of us were stunned when we were reminded by the then National Development minister that our 99-year leasehold properties would simply automatically revert to the government at the end of their leases without guaranteed levels of compensation.
“Our then-PM promised a pro-active solution (VERS) for “when the properties are around 70 years old” to the potential loss not only of our homes but also the bulk of our retirement savings.”
Seeking clear details on what VERS will offer, Prof Tambyah asked: “There are some properties which are older than I am and clearly the expectation is that VERS is going to be very generous. We need clear confirmation of this, or many of us will be in a very difficult position before too long…”