SERS & VERS - Complete Guide to "HDB En Bloc Sale" Schemes (2019)

There’s been a lot of talk lately about whether Housing Development Board (HDB) flat owners really own their flats, or whether they’re just tenants on a 99-year lease.

We can argue about this until the cows come home, but deep down, what Singaporeans really care about is whether there is money to be made out of that HDB flat.

For older flats, (right now, that generally means those with 50 years or less left), be prepared to see a huge drop in value once they start creeping towards the tail end of their leases. For instance, there will be no point to get a resale HDB flat if there are only 35 years left on the lease.

Once the resale value of a flat begins to fall, it’s time to start praying that it will be selected for the SERS, or that you and your neighbours can band together to get it redeveloped under the newly-announced VERS.

What is SERS HDB scheme?
What about VERS? How is VERS different from SERS?
What’s the difference between SERS, VERS and regular HDB resale?
How can you tell if your HDB has SERS potential?
What happens during the SERS process?
List of SERS HDB estates and blocks so far

What is SERS HDB scheme?

You’ve probably heard people talking about Singapore’s en bloc sales in the same reverent tones they talk about Toto or 4D prizes. And we all have that uncle who became an overnight millionaire when his place was sold in an en bloc sale.

SERS (Selective En Bloc Redevelopment Scheme) is similar to a “HDB en bloc sale,” although there are some important differences between the two.

Basically, when SERS takes place, the government notifies the homeowners that they’re going to acquire their flats.

The owners will be offered a compensation package that is usually quite generous. They will also be assisted in purchasing a flat with a fresh 99-year lease at subsidised rates. These new flats are usually located near their original homes.

In a nutshell: The government takes your flat, gives you money for it, and then gives you the option of moving to a new flat with a fresh 99 year lease.

This was what happened to the ex-owners of the iconic colourful Rochor Road HDB flats pictured above, which are currently undergoing demolition.

So, how does SERS differ from a private en bloc sale?

SERS aka “HDB en bloc sale”	Private en bloc sale
Participation is compulsory once you receive notice from the government	Residents get to vote for or against the collective sale by a private developer
Compensation is generous, but usually at market value	Owners tend to get prices way above market value
HDB will help SERS participants find a new home.	Private en bloc owners must source for their own accommodation
Replacement HDB flats are usually nearby and everyone will move in together	The neighbourhood community will split up as everyone will move to a different location
Process can take up to 4 years from receiving notice to finally moving out	Usually owners have to move out in less than a year

What about VERS? How is VERS different from SERS?

As the name suggests, Voluntary Early Redevelopment Scheme (VERS) will be a voluntary scheme that allows homeowners to decide to give up their flats for redevelopment. They will need to take a vote to decide whether or not to sell their flats to the government as the lease starts to run out.

At the same time, the VERS scheme will help the government redevelop estates gradually over 20 to 30 years, instead of taking all the flats back at the same time and trying to redevelop all that land within a much shorter timeframe.

The details of VERS haven’t been fleshed out yet, since it will not be needed for another 20 years, when the oldest HDB flats hit 70 years of age.

As SERS is not a given, whether your flat is selected for SERS depends on the luck of the draw. Currently, there are no HDB flats that are old enough to test if the government will heartlessly take flats back without compensating owners when their leases expire.

VERS is another HDB scheme to alleviate the problem of people becoming homeless in 50 years’ time.

Here are some of the details we know:

Flats with better redevelopment potential have a higher chance of being earmarked for VERS. This could mean flats in central locations or near MRT stations.
Only after a precinct is selected, will owners living there get to vote.
VERS will allow HDB flat owners to vote on whether they want to sell their flats back to the government when they are at least 70 years into their 99-year lease.
The compensation flat owners will enjoy through VERS will be less attractive than what SERS offers. Which means that there is no guarantee that proceeds will be sufficient to purchase an entire new flat. Homeowners should also not expect the scheme to make them rich overnight.
The government has not ruled out the possibility of giving private developers a role in VERS, but they have also mentioned that even if private developers do get involved, they will be tasked to develop public housing estates. This is bad news for HDB flat owners and means they should not expect to earn private en bloc-type profits.

What’s the difference between SERS, VERS and regular HDB resale?

Despite the fact that their acronyms differ by only one letter, SERS and VERS have some distinct differences. And of course, both schemes are very different from just selling your flat on the resale market.

The following table summarises the differences.

Type of sale	SERS	VERS	Resale flat
Is it compulsory?	Compulsory	Voluntary	Voluntary
Who is eligible?	Around 5% of HDB flats	Flats aged 70 & up where residents have voted yes to VERS	Any HDB flat after Minimum Occupation Period (usually 5 years)
What’s the compensation like?	Usually above market value of flat + rehousing grant (up to $30,000)	Less generous than for SERS	Depends on negotiations between buyer and seller
What about your new home?	New replacement flats offered at subsidised prices	No info yet	You settle yourself

How can you tell if your HDB flat has SERS potential?

There is no way to predict the future when it comes to SERS, especially as we’re only about halfway through the very first batch of 99-year leases.

But if your HDB estate has the following attributes, it has a better chance at being selected for SERS than one that does not:

Your estate is located in a central area in a mature estate.
Your estate is located near an MRT station.
The property in your estate does not use land space efficiently. (Basically, that means that everything is not packed like sardines and stacked to the sky.) This includes low rise blocks, big and spacious older flats and large open spaces.
There is alternative housing available in your neighbourhood where the HDB can shift you and your neighbours.
The property market is doing well. Don’t expect too many SERS acquisitions in a recession.

What happens during the SERS process?

Here’s what you can expect a SERS process to entail:

The government notifies you that your home is going to be acquired for redevelopment.

You attend an exhibition / info session to find out more about the SERS process and ask questions.
A valuer shows up at your flat to assess its market value.
You go for an appointment at HDB Hub, where you’ll be briefed about your finances and surveyed to help the government decide which replacement flat (with a fresh 99 year lease) to allocate you.
You complete a precinct survey so the government knows what facilities you want.
HDB informs you about the amount of compensation you will receive for the SERS acquisition.
You choose between several rehousing options and submit your application for a new flat. You can also participate in the Joint Selection Scheme, which lets your household and up to five others select your flats on the same day so you can continue to live close to each other.
You show up in person book your new flat according according to your balloted queue number.
You show up to collect your keys. You also pay for the flat. You can use the money you received from the SERS acquisition—take note, however, that some of this money might first have to be used to pay off existing loans or to return to CPF the money you used to buy your original flat.

List of SERS HDB estates/blocks so far

Want to know who the lucky ones who’ve benefitted from SERS are? Here’s a list of past SERS HDB blocks and estates.

SERS date	HDB blocks / estate
22 Aug 1995	1 – 16 Boon Tiong Road / Tiong Bahru Road
1 Sep 1995	145, 147, 151, 152 Lorong 2 Toa Payoh
8 Nov 1995	103, 105, 107, 110 – 112 Depot Road
8 Feb 1996	67, 71, 72, 77 Redhill Road
30 Apr 1996	6A, 6B Margaret Drive 39 Forfar House
28 May 1996	6, 7 Chai Chee Road
30 Jun 1996	307 to 309, 315, 316 Ang Mo Kio Avenue 1
9 Sep 1996	139 to 145 Corporation Drive / Hu Ching Road
5 Dec 1996	18, 19 Holland Drive
17 Feb 1997	79 Toa Payoh Central 89 Toa Payoh Lorong 2 454, 455 Ang Mo Kio Ave 2 126, 127 Kim Tian Road 51, 53, 54 Nile Road
25 Apr 1997	580 – 582 Ang Mo Kio Avenue 3 24, 28 Dover Crescent 3 to 5 Syed Alwi Road
17 Oct 1997	135 to 138 Tah Ching Road 439 to 440 Clementi Avenue 3
13 Feb 1998	78, 80, 81 Telok Blangah Drive 12 – 14, 17, 19, 21 to 23 Teban Gardens Road
21 Jul 1998	1 – 7 Short Street / Prinsep Street 11 – 13 Short Street 21 – 23, 27 – 29 Outram Park
7 Oct 1998	1 Upper Aljunied Lane 24, 31, 32 Jalan Membina Barat / Lower Delta Road 102, 103 Lower Delta Road 3 – 5 Lim Chu Kang Road
18 Mar 1999	7, 8 Tronoh Road
21 Mar 1999	1 – 8, 10, 12 to 14 Hillview Avenue
29 Oct 1999	136, 137, 140 Toa Payoh Lorong 1A 164 – 167 Toa Payoh Lorong 1 68, 70, 72 Dakota Crescent
20 Feb 2000	1, 2, 5, 206, 207 Punggol Road / Buangkok South Farmway 1 83 Bedok North Road 1 – 5 Sembawang Road
30 Jul 2000	70, 71 Telok Blangah Heights, 14 – 16 Outram Hill
12 Aug 2000	311 – 314 Clementi Ave 4
17 Feb 2001	96 Margaret Drive
3 Mar 2001	1 – 4 Seletar Road, 1, 2, 5 – 7 Seletar West Farmway 6
11 Mar 2001	6, 8, 9, 10 Upper Boon Keng Road
13 Jan 2003	50 – 54 Tanglin Halt 57, 61, 67 – 73 Commonwealth Drive
15 Jan 2003	28, 30, 32, 33 Lorong 5 / 6 Toa Payoh
20 Feb 2003	1 – 3 Jalan Pasar Baru / Geylang Serai
24 Feb 2003	29, 31, 33 Havelock Road / Taman Ho Swee
16 Jul 2004	46 – 50 Bedok South Avenue 3
19 Jul 2004	30 – 32, 34 – 39 Dover Road
28 Jul 2004	103, 105 Tao Ching Road
28 Mar 2005	436 – 438, 445 Clementi Ave 3
21 Apr 2005	14 – 17, 22, 23 Holland Avenue / Drive
25 Nov 2005	20 Upper Boon Keng Road 24, 56, 57, 59, 60, 62 Sims Drive
29 Dec 2005	6C Margaret Drive 27A, 39A Commonwealth Avenue
22 Mar 2006	5 – 10 Yung Ping Road / Yung Kuang Road 180-182, 184 Boon Lay Drive 216, 217, 219, 220 Boon Lay Avenue
21 Apr 2006	88 – 92 Zion Road
22 Jun 2006	246 – 252 Ang Mo Kio Avenue 2 / 3 / 4
8 Dec 2006	9 – 12, 9A, 12A Ghim Moh Road
23 Feb 2007	94, 96 Henderson Road 17 – 19, 22 – 31 Silat Walk / Kampong Bahru Hill / Silat Road
28 Jun 2007	401 – 404, 407 – 409 Clementi Avenue 1
12 Jul 2007	2-11 Teban Gardens Road
8 Aug 2008	74 – 80 Commonwealth Drive
8 Nov 2009	110, 111, 113, 114 Bukit Merah View
13 Feb 2011	321 – 323 Clementi Avenue 5
9 Nov 2011	1 – 3 East Coast Road
15 Nov 2011	1 – 4 Rochor Road (as pictured in the main image)
3 Dec 2011	1 – 3, 5 – 22 Redhill Close
20 Dec 2011	167 – 172 Boon Lay Drive
25 Jun 2012	1A, 2A Woodlands Centre Road
27 Jun 2014	24 – 38, 40-45, 55, 56, 58 – 60, 60 – 66 Tanglin Halt Road / Commonwealth Drive
3 Aug 2016	513 – 520 West Coast Road
31 May 2018	81 – 83 MacPherson Lane