SERS vs VERS: What they mean for HDB owners and the resale market
- Ben Tan
- Aug 22
- 3 min read
Updated: Sep 15
If you’ve been following Singapore’s housing policies, you’ve probably come across two terms that sound similar but mean very different things: SERS and VERS.
Both are about redeveloping ageing HDB estates, but the way they work — and the impact on homeowners — couldn’t be more different. Let’s break it down simply.
What is SERS?
SERS, or the Selective En bloc Redevelopment Scheme, started back in 1995.
It was designed to rejuvenate older estates by tearing down certain blocks and redeveloping the land for newer flats. The catch is that it wasn’t something you could opt into — the government picked the blocks.
For those lucky enough to be selected, the benefits were significant. Owners got market compensation for their flats, plus priority to buy a brand-new flat nearby with a fresh 99-year lease. On top of that, there were grants and subsidies to help with the move.
The downside? It was rare. Only about 4–5% of HDB flats have ever been selected for SERS, which has led to heavy speculation about which blocks might “strike gold.”
What is VERS?
VERS, or the Voluntary Early Redevelopment Scheme, was announced in 2018 and is set to roll out in the 2030s.
It’s meant for flats that are above 70 years old. Unlike SERS, this one is not compulsory. Instead, residents of the selected precinct get to vote on whether they want to sell their flats back to HDB early.
Here’s the important part: while the details haven’t been shared yet, the compensation won’t be as generous as SERS.
So while SERS felt like a jackpot, VERS is more like a safety net. It gives homeowners an option to exit before lease expiry, but not at a premium.
Key differences between SERS and VERS
The first difference is in control. With SERS, the government decides, and once your block is picked, you don’t get a choice. With VERS, the decision rests with residents — if a supermajority votes “yes,” then it happens.
The second difference is coverage. SERS typically targets flats with high redevelopment potential, while VERS is designed for much older estates that have reached the 70-year mark to smooth the renewal of ageing flats.
And of course, the biggest difference is money. SERS owners walk away with market value compensation and a guaranteed new flat. VERS owners get less generous compensation than SERS.
How does VERS affect HDB resale?
This shift from SERS to VERS is already changing the way buyers and sellers view older HDB flats. In the past, some buyers paid more for ageing flats because of the speculative factor — the hope that their block might be picked for SERS. With no SERS going forward, that factor is gone.
Instead, buyers see these flats as having a more realistic “life span” of about 70 years. That means resale prices for older HDBs may soften, and homeowners can’t count on the government stepping in with a windfall.
Planning ahead becomes crucial. Whether it’s upgrading earlier, timing a sale before prices dip, or making sure you can afford your next property, the responsibility now lies with you.
Final thoughts
SERS was a bonus that benefited a lucky few. VERS, on the other hand, is about giving most homeowners a structured way to exit ageing flats.
For anyone thinking long-term, the key takeaway is this: don’t buy an old flat just for the “what if.” Focus instead on how the lease, location, and your financial plans align with your goals.
At the end of the day, housing should fit into your bigger wealth strategy — not be a gamble on government policy.
To learn how VERS may impact your HDB, please contact us for a non-obligatory consultation.
Frequently Asked Questions (FAQs)
1. Will every old HDB block get VERS?
No. Just like SERS, not every block will qualify. VERS will only be offered to selected precincts, and it depends on redevelopment potential, location, and demand for land use.
2. How is compensation under VERS calculated?
There are no details on the compensation as yet, but the government has hinted that the compensation will be less generous than SERS.
3. What happens if residents vote against VERS?
If the required majority does not agree, the estate continues as normal. Flats will simply run down their lease until expiry.
4. Will VERS make my flat more valuable in the resale market?
Not likely. Since VERS compensation is modest, it doesn’t create the same speculative boost that SERS once did. Buyers now consider lease decay more seriously when valuing older flats.
5. When will the first VERS exercise happen?
The government has stated that VERS will likely begin in the 2030s, when the first batches of HDB flats approach the 70-year mark. More details on execution and policies will be announced closer to launch.
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