Actual compensation for Ang Mo Kio SERS residents about 7.5% higher than expected: HDB

SINGAPORE: The actual compensation for Ang Mo Kio residents identified for the Selective En bloc Redevelopment Scheme (SERS) is about 7.5 per cent higher than expected, the Housing and Development Board (HDB) said on Wednesday (Nov 9).

Close to 90 per cent of SERS households have also been successful in applying for a new flat with their SERS rehousing benefits, HDB said in a media statement.

The higher actual compensations rates are largely caused by two factors. First, the conditions and extent of renovations, fittings and fixtures of flats after a physical inspection. HDB said that flats which are well-renovated and well-maintained command higher market values.

Second, the 7.5 per cent difference also reflects resale market movements between the time the estimates were prepared in February 2022 and the SERS announcement in April 2022.

The flat owners will be compensated for their flats based on the prevailing market value at the time of the SERS announcement, in line with the Land Acquisition Act, HDB said.

Market compensations are assessed by a professional private valuer, taking into account the transacted prices of comparable resale flats in the vicinity, the flats' remaining lease and the individual attributes of the unit, including floor area and storey height.

"The valuation also factored in amenities in the vicinity, both existing and future plans which are already public information, including retail facilities, market, parks, schools, and proximity to MRT station," said HDB.

"The overall assessment of all the contributing factors determined the market value of each flat as at the time of the SERS announcement."

These valuation principles are well-established and have been consistently applied in all the past SERS exercises, HDB added.

On top of market value compensation, affected flat owners will also receive payment for reasonable expenses, comprising a removal allowance of S$10,000 to defray relocation costs and stamp and legal fees for the purchase of a replacement flat equivalent in value to their SERS flat.

Eligible flat owners will also receive a SERS grant of up to S$30,000 for the purchase of a replacement flat.

REHOUSING OPTIONS AT ANG MO KIO DRIVE

At the designated replacement site for SERS flat owners at Ang Mo Kio Drive, a range of options are available, said HDB.

Residents can opt for a new flat on a fresh 99-year lease, which is nearly double the lease of their existing flats by the estimated time of moving out in 2027.

Flat owners aged 55 and above can also take up a new 2-room Flexi flat on a short lease.

Residents can also opt for a 3-room or larger new flat on a 50-year lease, if the 50-year lease is able to last the youngest flat owner until at least age 95. 

Flat owners who are at least 65-years-old can also choose to take up the Lease Buyback Scheme for their existing flat and buy a short-lease new replacement flat thereafter.

The latter two rehousing options were introduced in July 2022, HDB said.

With the higher actual compensation payouts, 99 per cent of flat owners can purchase a new replacement flat of a similar flat type or size without cash top-up, said HDB.

OTHER REHOUSING OPTIONS

SERS flat owners who wish to move outside of the designated replacement site at Ang Mo Kio Drive will also have options, HDB said.

They can use their SERS rehousing benefits to buy a new flat elsewhere in HDB's Build-To-Order (BTO) and Sale of Balance Flats (SBF) exercises, receiving priority allocation of 10 per cent of the flat supply where eligible.

They can also buy a flat from HDB’s open booking of flats or buy a resale flat from the open market using either the SERS compensation amount and an ex-gratia payment of S$30,000 plus the SERS grant or the proceeds from the sale of their SERS flat with its rehousing benefits.

In September 2022, HDB said that nearly one in five, or 117 out of 606 households, have applied for a flat in either the May or August 2022 BTO and SBF exercises.

Of those household applicants, 104 received a queue number to book a flat. 

"This means that close to 90 per cent of the households have been successful in their flat application," HDB said, adding that the remaining applications exceeded the number of units set aside under the 10 per cent priority allocation quota.

In total, 97 SERS households will be able to select new flats at Kim Keat Heights, Lakeside View and Yishun Beacon from the May 2022 BTO sales exercise, as well as Central Weave@AMK, Woodlands South Plains and Sun Plaza Spring from the August 2022 BTO sales exercise.

Seven other SERS households will be selecting flats from the May 2022 SBF sales exercise in towns including Bishan, Sengkang, Tampines and Yishun.

"SERS households who are not successful in the ballot can still apply for new flats elsewhere in subsequent BTO and SBF exercises or open booking with their rehousing benefits," said HDB.

"They also have the option of taking up a new flat at their respective designated site or buy a resale flat thereafter, where they can choose from a wide variety of locations, prices and lease lengths."

HDB officers went door-to-door to deliver compensation notices to flat owners in the four affected SERS blocks on Wednesday. 

When serving the compensation notices, the officers also went through a customised financial plan to guide them in choosing a rehousing option that best meets their needs and budget, said HDB.

"With the actual compensation details, the flat owners now will have more clarity and greater certainty in deciding their rehousing options."

HDB said that the registration for the new flats at Ang Mo Kio Drive will start in the first quarter of 2023, with flat owners invited to book their new homes from late 2023.

The actual selling prices of the new flats will be made known by then.

"HDB will continue to provide personalised support for all SERS households and guide them through the entire SERS process," the board added.

SERS, introduced in 1995, is part of the Government’s efforts to renew older housing estates. Under the scheme, residents are offered new homes nearby, while the old site will be redeveloped.

The Ang Mo Kio SERS project was the first such announcement in nearly four years.

Before this, the last SERS project was in MacPherson, announced on May 31, 2018.