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SINGAPORE — When Madam Yong learnt that her 43-year-old public housing estate in Ang Mo Kio was chosen for the Selective En bloc Redevelopment (Sers) scheme in April, she attended a meeting with the Housing and Development Board (HDB) to discuss rehousing options.
There, an HDB officer told the 75-year-old retired teacher that if she wished to move to a similar-sized flat at the allocated replacement blocks, she would have to fork out an estimated S$102,000.
Mdm Yong, who declined to give her full name, told TODAY: “Where will the money come from? I won’t have any money left if I pay this. I’m no longer working.”
Like Mdm Yong, six other residents of blocks 562 to 565 Ang Mo Kio Avenue 3 who spoke to TODAY said it was “unfair” that they might need to cough up extra money to buy a replacement flat of a same size at the nearby Ang Mo Kio Drive.
In particular, they are worried that the many seniors among the 600-odd households living in the estate would be unable to afford a replacement flat without downsizing to a smaller unit. At their age, these seniors would most likely be unable to get a housing loan to pay the shortfall.
SERS NOT A '1-FOR-1 EXCHANGE'
Property experts said it is logical that a replacement flat, with a fresh 99-year lease, would be valued more than a homeowner's existing flat since it will likely fetch a much better price compared to if the owner had sold the old flat in the open market.
Ms Wong Siew Ying, head of research and content at property firm PropNex, said it is not surprising that owners have to top up money to get a similar-sized replacement flat, especially with the high cost of BTO launches in mature estates.
She added that for Sers exercises, there is no automatic “one-for-one exchange” for a replacement flat.
Another analyst, Dr Lee Nai Jia, said there may be an impression that a flat being selected for Sers is akin to receiving a windfall, but many people do not realise that the supposed “windfall” only happens upon selling the replacement flats after meeting the five-year minimum occupancy period.
Dr Lee, deputy director of the Institute of Real Estate and Urban Studies at the National University of Singapore, noted that there have always been “hardship” cases involving older residents who cannot take up new housing loans in Sers exercises.
No public data on the compensation amounts and prices of replacement flats are available.
Dr Lee added that the situation playing out for the Ang Mo Kio Avenue 3 residents may be a reflection of the ageing population in Singapore, which he said could make Sers a more complex issue that may have political consequences in the future as the country continues to age.
He noted, though, that in the 2014 Sers exercise in Tanglin Halt, there did not seem to be many residents who raised issues about compensations.
This could be because the housing market was on a downtrend at the time. Most of the Tanglin Halt residents also lived in three-room or smaller flats, which has had relatively stable prices over the years compared to larger flats.
“Initially, people thought that Sers was a gift, but they do not realise that it comes with strings attached,” Dr Lee said.
HDB said that it is aware of residents needing to fork out extra money to buy a flat closer to the size of their existing unit.
“We understand these concerns, especially from seniors who have informed us that they do not need the fresh 99-year lease that comes with the new replacement flats,” it added.
“We are looking at the residents’ feedback and will continue to explore options to assist these families.
"We will also continue to guide and support the other residents of blocks 562 to 565 on Ang Mo Kio Avenue 3 in their journey through the entire Sers process.”
HDB gave no details on what these “options” may be.
Mr Sam L, the semi-retired resident, suggested that the public housing authority make the replacement flats more affordable for older residents by allowing them to buy flats with the same number of years left on the lease as their existing units.
https://www.todayonline.com/singapore/ang-mo-kio-sers-residents-unhappy-hdb-1924911
