Written Answer by Ministry of National Development on grants and allowance under the Selective En Bloc Redevelopment Scheme

Aug 2, 2022

Mr Yip Hon Weng: To ask the Minister for National Development (a) when were the $30,000 grant under Selective En Bloc Redevelopment Scheme and $10,000 moving allowance established; (b) how were these figures arrived at; (c) how often are these figures reviewed; and (d) does the Ministry take into account the prevailing economic situation to ensure that the grants and the moving allowance will be in line with the current market expenses at the time when the residents move into their new place.

Answer:

1          Before the announcement of a SERS exercise, HDB reviews the entire benefits package for residents holistically. Including the compensation value of the existing flats and other benefits, residents under SERS will generally be able to afford replacement flats.

2.         Under SERS, flat owners are compensated for their existing flats based on the prevailing market values at the time of the SERS announcement. The SERS grant of up to $30,000 for eligible households provides added financial help for residents to purchase a replacement flat.

3.         SERS flat owners can then use their total compensation to decide on a rehousing option that best suits their needs and budget. They may buy a new flat at the designated replacement site at a subsidised price which is also frozen at the point of the SERS announcement date, or a subsidised new flat elsewhere, offered in HDB’s public sales exercises.

4.         In addition, residents will receive payment for reasonable expenses, comprising a removal allowance and stamp and legal fees for the purchase of a replacement flat. MND does review the removal allowance, taking into account factors such as the cost of engaging movers, which is typically between $300 and $500 per truck load. To minimise the need for renovations, SERS flat owners can opt for fittings and fixtures to be installed in their new flat under the Optional Component Scheme (OCS). The cost of the OCS will be incorporated into the flat price, which can be paid via CPF monies and/or housing loan, thus reducing the cash outlay needed for renovations. We continue to monitor the costs closely and will review the grant as and when needed.