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September 27, 2024
RehouSERS: The HDB En Bloc Initiative
Sheena Sugiarto
Research Writer
Ever wonder what happens to older HDB estates? You know the ones, with the familiar corridors and the friendly auntie at the shop downstairs. Well, sometimes they get a chance for a fresh start through SERS - the Selective En Bloc Redevelopment Scheme. In this article, we'll delve into this government initiative and its implications. So if you're an HDB owner or considering becoming one, keep reading! However, if you're more interested in private properties, you might want to click here.
The Selective En Bloc Redevelopment Scheme (SERS) is a programme that serves to renew older HDB housing estates. This is not to be confused with regular en bloc, which can affect any property. SERS are typically directed towards HDB estates that are decades old that might require significant upgrading or even complete reconstruction to meet modern living standards and accommodate Singapore's growing population. Under this scheme, HDB acquires the affected properties and offers fair compensation, relocation options and rehousing benefits to residents.
- Site Selection
HDB will select sites for SERS based on the age of the estate, location, potential for redevelopment and overall urban planning needs.
- Announcement
Once an estate is chosen, HDB will announce the SERS to residents.
- Exhibition
HDB will then hold an exhibition on SERS near the affected estate so residents can visit and learn more about the process.
- Flat Valuation
Professional valuers appointed by HDB will assess the market value of each flats.
- Collectors inquiry
HDB will arrange for individual meetings with residents to confirm who owns the flat and help them with financial planning for relocation. They will also conduct a survey on the resident's preferred type of flat to give HDB an idea of the flat mix they need to have in the replacement site.
- Precinct survey
HDB will ask residents about their preferred facilities. They will also get to name their new home.
- Compensation notice
HDB will inform residents of how much compensation they will receive. More on that below.
- Rehousing options
Residents will get to choose one of the rehousing options provided by HDB. More on that below.
- New flat registration
If you choose to move to the designated replacement site, you can submit an application to HDB to register yourself. You can also do this under the Joint Selection Scheme to continue living close to your current neighbours.
- Selecting a new flat
HDB will provide sales brochures and price lists as well as your balloted queue number. Then, you will need to come down to HDB Hubs to book your new home.
- Key collection
When your flat is ready, you can collect your keys at HDB Hub.
- Moving out
You have up to four months after the key collection to renovate and move into your new flat. At this point, you will return the SERS flat and receive your balance compensation (if any).
There are several rehousing options you should review before you make your decision. They are as follows:
Taking up a new flat at the designated replacement site
You can choose to purchase a new 99-year lease flat, or, a new 3-room or larger replacement flat on a 50-year lease at the designated replacement site. However, the latter is only available for those aged 45 and above.
Apply for an HDB flat elsewhere
You can choose to apply for a flat with SERS rehousing benefits under the Build-To-Order (BTO) exercise, Sale of Balance (SBF) exercise or open booking. Do note that under the Resettlement, Relocation, SERS, and Tenants' Priority Scheme, HDB sets aside up to 10% of BTO and SBF flats for residents affected by SERS. Read more about priority schemes here.
Sell or transfer your SERS flat
HDB wants you to take the time and learn about the rehousing benefits that they offer, so you won't be able to sell or transfer your flat for a month after the SERS announcement. You can still choose to sell your flat after this period, but you won't receive the SERS benefits. However, you are not allowed to sell your SERS flat if you have previously received SERS rehousing benefits.
Receive ex-gratia payment on top of compensation instead of SERS rehousing benefits
You can return the SERS flat and receive ex-gratia payment on top of compensation, but by doing so you will not receive HDB's rehousing benefits. The amount of ex-gratia offered by HDB is $30,000 plus SERS grant (if you are eligible), 50% of which will be paid to you in cash. The other 50% will be paid into your CPF OA.
The amount of compensation each resident receives will differ based on the market value of their flat at the point of the SERS announcement. Additionally, residents will receive reasonable expenses to accommodate the moving process. The total compensation will be used to pay off what you still owe to your SERS flat. This includes property tax, outstanding housing loan and amount to refund (with accrued interest) to your CPF ordinary account (OA).
The remaining amount (if any) is what's called a balance compensation. You can use this to help pay for your new home. If not, you can ask for up to $35,000 in advance to help renovate your new flat, but you need to set aside a $1,000 retention sum. Once you return your SERS flat, you will receive the retention sum and any remaining balance compensation in cash.
source: hdb.gov.sg
The SERS rehousing benefits are offered to all eligible flat owners. The grant amount is credited to your CPF OA and can only be used to pay for a replacement flat from HDB. This amount will be returned with interest to your CPF OA when you sell or transfer the replacement flat in the future. Should your application for a replacement flat be cancelled, HDB will recover the grant amount with interest.
However, the rehousing benefits and grant amount you can receive may vary depending on your household status - a factor which will determine whether you should cry or celebrate when you receive a SERS notice. Here is a detailed breakdown:
First- and second-timer
Below are the benefits for first- and second-timers
| Rehousing benefits | Details |
| SERS Grant | $30,000 grant to buy a new flat at a subsidised price |
| Type of flat | Up to a new 5-room, or a 3Gen flat as long as you meet the following requirements:
Note: 5-room and 3Gen flats are only available at selected SERS replacement precincts |
| Fee Waivers |
|
| Deferred payment to HDB | You don't have to pay for the new flat until you collect your keys |
| Resale levy or premium concessions | Capped at $30,000, which can be paid using SERS compensation You will pay a resale levy or premium if:
If you sold your first subsidised flat between July 1985 and May 1997 and chose to pay a premium instead of the levy, you can now switch to paying the levy (up to $30,000) if it works out better for you financially. |
| Housing loan eligibility for replacement flat | If your SERS flat is or was financed by an HDB concessionary loan, you are eligible for a loan from HDB. The maximum amount of loan granted will depend on your credit assessment. If your SERS flat is or was financed by an HDB market rate loan or bank loan, you are not eligible for a loan from HDB. However, you may get a bank loan. |
Non-citizen spouse household
Below are the benefits for a household with a Singapore Citizen (SC) and a spouse who is neither a SC nor a Singapore Permanent Resident (SPR)
| Rehousing benefits | Details |
| SERS Grant | $15,000 grant to buy a new flat at a subsidised price If the SC spouse is under 35 years old at the point of SERS announcement, the non-citizen spouse must hold a long term visit pass or work pass that is valid for at least six months to qualify for this grant. |
| Type of flat | Up to a new 5-room, or a 3Gen flat as long as you meet the following requirements:
Note: 5-room and 3Gen flats are only available at selected SERS replacement precincts |
| Fee Waivers |
|
| Deferred payment to HDB | You don't have to pay for the new flat until you collect your keys |
| Resale levy or premium concessions | Capped at $30,000, which can be paid using SERS compensation You will pay a resale levy or premium if:
If you sold your first subsidised flat between July 1985 and May 1997 and chose to pay a premium instead of the levy, you can now switch to paying the levy (up to $30,000) if it works out better for you financially. |
| Housing loan eligibility for replacement flat | If your SERS flat is or was financed by an HDB concessionary loan, you are eligible for a loan from HDB. The maximum amount of loan granted will depend on your credit assessment. If your SERS flat is or was financed by an HDB market rate loan or bank loan, you are not eligible for a loan from HDB. However, you may get a bank loan. |
Singapore Permanent Resident (SPR) household
Below are the benefits for a household with no Singapore citizen owner.
| Rehousing benefits | Details |
| SERS Grant | No grant, but you can still buy a new flat at a subsidised price |
| Type of flat | Up to a new 5-room, or a 3Gen flat as long as you meet the following requirements:
Note: 5-room and 3Gen flats are only available at selected SERS replacement precincts |
| Fee Waivers | Administrative and booking fees for the replacement flat |
| Deferred payment to HDB | You don't have to pay for the new flat until you collect your keys |
| Resale levy or premium concessions | Capped at $30,000, which can be paid using SERS compensation You will pay a resale levy or premium if:
If you sold your first subsidised flat between July 1985 and May 1997 and chose to pay a premium instead of the levy, you can now switch to paying the levy (up to $30,000) if it works out better for you financially. |
| Housing loan eligibility for replacement flat | You are not eligible for a loan from HDB. However, you may get a bank loan. |
| Important notes | To receive a SERS grant of $30,000 and be considered for a housing loan from HDB, you must meet these requirements before collecting keys to
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