HDB VERS – Good news? Here is everything you need to know

Get The Property Insights Serious Buyers Read First: Join 50,000+ readers who rely on our weekly breakdowns of Singapore’s property market.

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.
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
The Essential Guide To Read And Compare A Floor Plan
This is Part 14 of our 18-part first-time home buyer series. You may refer to the full table below:
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 Which Central Singapore Condos Still Offer Long-Term Value? Here Are My Picks

Property Market Commentary I Reviewed HDB’s 2 And 3-Room Show Flats: Ideal For First-Time Buyers Or Too Small To Live In?

Property Market Commentary I Reviewed HDB’s Showroom For 4 And 5-Room Flats. Here’s What Future Homeowners Should Know

Property Market Commentary The Biggest Misconceptions About Buying Property In Singapore’s CCR In 2025
Latest Posts

Landed Home Tours Where To Find Freehold Terrace & Semi-D Landed Homes From $4.85m In The East

Singapore Property News She Lost $590,000 On A Shop Space That Didn’t Exist: The Problem With Floor Plans In Singapore

On The Market 5 Cheapest Newly MOP 5 Room HDB Flats From $700k

Pro Why Rivergate Outperformed Its District 9 Rivals—Despite Being Nearly 20 Years Old

On The Market Springleaf Vs Faber Walk: Which Future GLS Residential Site Has More Potential?

Editor's Pick Why Kingsford Hillview Peak Underperformed—Despite Its MRT Location And “Good” Entry Price

Editor's Pick Buying Property In Malaysia As A Singaporean: 6 Key Restrictions To Be Aware Of

Editor's Pick Why Punggol Northshore Could Be The Next Hotspot In The HDB Resale Market

Singapore Property News 9,800 New Homes Across 11 GLS Sites In 2H 2025: What To Know About Tanjong Rhu, Dover, And Bedok

Singapore Property News Why HDB Needs To Build More 4 Bedroom Flats

Homeowner Stories “If We Sell, We’ll Never Have A Home This Big Again”: What Singaporean Parents Do After The Kids Move Out

Property Advice How Much Is Your Home Really Worth? How Property Valuations Work in Singapore

Property Investment Insights Singapore Property Data Is Transparent: But Here’s Why It Can Still Mislead You

Editor's Pick Why Marina Bay Suites May Look Like a Poor Performer—But Its 4-Bedroom Units Tell a Different Story

On The Market 5 Cheapest Convenient 1-Bedders Near Integrated Developments From $800k
