VERS Should Not Be a Lottery or Wealth Scheme, Says Chee Hong Tat
National Development Minister Chee Hong Tat has emphasised that the Voluntary Early Redevelopment Scheme (VERS) must not give rise to a “lottery effect” or turn into a programme that enables wealth accumulation for some residents, during Parliament on 24 September.
He was responding to concerns raised by Members of Parliament Foo Cexiang (Tanjong Pagar GRC) and Andre Low (Workers’ Party Non-Constituency MP). Foo asked whether the selective application of VERS to certain Housing & Development Board (HDB) precincts might create a sense of unfair luck among residents. Low sought assurance that VERS will function as a structured renewal initiative rather than a means for financial gain.
Chee pointed out several key differences between VERS and the existing Selective En Bloc Redevelopment Scheme (SERS). Unlike SERS, which applies compulsorily to precincts with high redevelopment potential, VERS will operate voluntarily and aim to gradually redevelop older estates over time.
One consequence is that flats under VERS will have shorter remaining leases than those under SERS, which means the compensation for VERS participants will generally be lower.
Other aspects under review include the voting process, relocation support for different demographic groups, and ensuring fairness for residents, especially for seniors who may have mortgages or other financial constraints.
A central goal of VERS, said the Minister, is to maintain housing that lasts residents for their lifetime. Currently, about 2.5% of HDB households do not own flats with leases that would cover the owners until at least age 95. With the median lifespan around 84, most residents have flats whose leases suffice for life, but the scheme aims to further reduce those who don’t.
Chee also noted that not every older flat will undergo VERS. Participating is voluntary, and redevelopment will be done in phases—often over several blocks rather than block by block—to minimise disruption to residents and businesses. Estates that opt out will continue to be supported through other programmes promoting liveability, such as upgrading and repair initiatives.
Finally, the government aims to finalise many details of VERS during its current term, with the first projects likely to begin in the first half of the 2030s.
