If you have not watched the National Day Rally 2018 yet, VERS might just be the next buzzword that you will have to learn about. So if you are staying in an HDB, this would probably be something that you really should be aware about.
BREAKING: New scheme, Vers, to be introduced to allow more HDB flat owners to benefit from redevelopment before their leases expire, says PM Lee #NDRSG #NDR2018 pic.twitter.com/W6SfplwDky
— The Straits Times (@straits_times) August 19, 2018
Here’s what you need to know about it:
What is VERS?
VERS stands for Voluntary Early Redevelopment Scheme. Put simply, it works somewhat like how the en bloc system currently works for private developments. The scheme is voluntary unlike SERS, where in that scheme only certain estates that are identified by the Government will be selected, and even then only 5 per cent of flats are actually suitable.
So the Government will buy back flats that are 70 years or more, and this is entirely subject to the residents vote. So only if they vote “yes” will it go through. The Government will then buy back the estate and redevelop it and the compensation can help the residents to help pay for another flat. On the other hand, if the residents vote “no” then they can continue to live there till the leases run out.
NDR 2018: Voluntary Early Redevelopment SchemeWATCH: PM Lee Hsien Loong announces a new option for HDB flats that reach 70 years of age – they can be bought back by the Government. #NDRsg
Posted by CNA on Sunday, August 19, 2018
Of course, what you get back as compensation from the Government will be less generous than SERS.
As the scheme will not start for another 20 years, not everything has been worked out fully yet. So terms of the compensation offered and how to select the precincts have not been worked out yet.
More from Stacked
We Rushed To Buy A Home During The Pandemic: Here’s Why It Nearly Became A Big Regret
The pandemic might have just been one of the worst times to buy a home. Unless you were one of…
Why do we need VERS?
As Singapore progresses and population grows, HDB towns will get older and leases get closer to expiry. It becomes important to think about how to redevelop these older areas to make better use of the land. Of course, SERS already serves that in a certain capacity. But these are only for prime areas selected by the Government and as said earlier, only covers 5 per cent of the HDB estates. So there is definitely a need to look at the other 95 per cent as well.
And that is where VERS comes in.
Because many of the older estates such as Marine Parade, Ang Mo Kio and Bedok were built quickly to meet the demands of a quick growing population in the early years, many of these estates will have to be redeveloped quickly. But with VERS, hopefully this can be done progressively over a span of time.

Property Market Commentary99-year leasehold: What happens when the lease runs out?
by StanleyIs VERS a good thing?

Of course as said earlier, not all the full details are out yet, so it is hard to pass an exact judgement on it. But on the surface, it definitely is a better offer than the current one of just letting the leases on HDBs run out and not receiving anything at the end of it.
VERS should also not cause any kind of price appreciation in older flats and speculative buying as the Government would be very wary of that, seeing as how having en bloc has turned the private property market into a frenzy at times. So we do not expect that the compensation will be great. But it does provide liquidity for these depreciating assets, which will be helpful to the residents.
As always, if you have any comments feel free to leave them below or you can always reach out to us at hello@stackedhomes.com!
Sean
Sean has a writing experience of 3 years and is currently with Stacked Homes focused on general property research, helping to pen articles focused on condos. In his free time, he enjoys photography and coffee tasting.Read next from Property Market Commentary

Property Market Commentary 10 Most Affordable New Launch Condos Under $1.5 Million—Some Are Surprisingly Central

Property Market Commentary Why I Might Still Pay $1 Million For A 50-Year-Old HDB—Even If Everyone Says It’s A Bad Buy

Property Market Commentary Singapore’s Most Expensive Neighbourhoods Are Changing—4 Buyer Trends That Prove It In 2025

Property Market Commentary URA 2025 Draft Master Plan: 6 Under The Radar Changes You May Have Missed
Latest Posts

New Launch Condo Analysis Springleaf Residence Launches From $878K — Is This 941-Unit Mega Development Worth It?

On The Market 5 Spacious 3-Bedroom Condos That Cost Less Than You’d Expect (Under $2M)

Singapore Property News Is Your HDB or Condo at Risk of a Sinkhole? 5 Signs to Watch Out For

New Launch Condo Analysis Canberra Crescent Residences Pricing Breakdown: A Price Comparison With Nearby Condos

Editor's Pick A New River Valley Condo From Just $1.2M? Here’s What You Need To Know About River Green’s Pricing

Singapore Property News This 3-Room Flat in Toa Payoh Just Sold for $920K — Here’s What The Seller Could Have Made

Editor's Pick We Found Freehold Landed Homes From $4 Million In The East—But Would You Live Here?

Singapore Property News Would You Still Pay More For A Private Condo, If The EC Next Door Looked The Same?

Overseas Property Investing Why I Bought 7 Properties in Johor Bahru, and Will Still Buy More

Editor's Pick River Green Condo Review: Attractive Entry Price To River Valley From $1.2m

On The Market 5 Spacious Cluster Landed Homes That Cost Less Than You’d Expect (From $2.79M)

Pro Why The Interlace Condo Underperformed—Despite Its Massive Land Size And Large Units

On The Market Spacious 4-Bedroom In Orchard Is On The Market For $6.3M – With a Rare Standout Feature

BTO Reviews July 2025 BTO Launch Review: Ultimate Guide To Choosing The Best Unit

New Launch Condo Analysis Promenade Peak Pricing Breakdown: How It Compares to Nearby Resale and New Launch Condos
