More choice for SERS flat owners

They have priority for Build-To-Order flats anywhere and financial help too

By Daryl Chin, The Straits Times, 15 Mar 2012

THE Government has given a boost to Housing Board homeowners affected by en bloc redevelopment of their estates.

They will now be given priority in the selection of any Build-To-Order (BTO) flat across the island, instead of just the replacement flats allocated to them near their current homes.

They will also receive concessions which could ease their financial burden in purchasing their new flats.

These include paying a lower resale levy upfront in some cases, or opting to defer payment of the entire sum. Resale levy is payable when an HDB homeowner buys a second subsidised flat from the Government.

Those above 55 will also be able to seek permission to dip into their Central Provident Fund (CPF) Retirement Accounts - a pool of money previously reserved strictly for their retirement needs - should their current finances prove insufficient.

The Selective En Bloc Redevelopment Scheme (SERS) came under the spotlight in recent months after the Government announced it would acquire Rochor Centre in order to lengthen the southern stretch of the North-South Expressway.

The move affects 567 homeowners, some of whom have been living there for decades, as well as 187 shops and eating places.

Some residents have expressed reservations about moving into replacement flats reserved for them in Kallang, saying they are pricey and not an equivalent substitute for their centrally located homes.

Member of Parliament for Moulmein-Kallang GRC Denise Phua has also weighed in on the issue, asking the Government to provide higher compensation.

In a statement to The Straits Times, HDB said it 'regularly reviews its policies and processes to ensure they remain relevant and meet the needs of residents'.

'Taking into consideration feedback from our residents, HDB has recently reviewed and enhanced the various concessions to make the SERS package more favourable,' it added.

Under SERS, selected older buildings are redeveloped to make the best use of land. Owners get market-value compensation and are allocated a new replacement flat in a nearby location.

With the new rule changes, up to 5per cent of all upcoming BTO launches islandwide are reserved for selection by such homeowners before anyone else.

They will get the same discount off the price of these flats as they are getting on the replacement flats, which is 20per cent subject to a cap of $30,000.

Should SERS residents still be unable to get a new BTO flat by the end of the grace period, they can fall back on the replacement flats which have already been set aside for them.

Another key change is that they can opt to defer the payment of any applicable resale levy, which can range from $15,000 to $50,000 depending on flat type, until they sell or transfer their flats.

If they decide to pay the levy upfront, some may get a discount on it because HDB will now cap the upfront payment at $30,000.

Besides Rochor Centre residents, the changes will apply to other announced SERS projects in Clementi Avenue5, East Coast Road, Redhill Close and Boon Lay Drive.

All in, 2,553 households will stand to gain.

Reacting to the changes, PropNex chief executive Mohamed Ismail said they were a practical approach to minimising the problems felt by affected residents. They could also be a sign of things to come, he added.

'Our public housing is ageing. And as the years go by, more and more estates will be subjected to SERS to make the best use of the land. This will lessen the pain felt by SERS residents,' he said.

Said SLP International head of research Nicholas Mak: 'The deferment of the entire resale levy will also be welcome, as not everyone - particularly the elderly - will have the liquidity to pay the resale levy upfront.'

Boon Lay Drive resident Poh Kit Wai, 50, said he was glad that he now had a better shot at getting a new flat within his preferred location. 'Maybe, if I'm lucky, it will be a scenic location and I will be nearer my children,' said the technician.

CHANGES AT A GLANCE

- Priority allocation for new Build-To-Order and Sale of Balance flat launches for Selective En Bloc Redevelopment Scheme (SERS) lessees. Up to 5 per cent of these launches will be set aside for SERS residents. This will apply to all launches up to the end of the grace period to pick a new flat, after which residents can fall back on the replacement flat.

- Applicants who enjoyed a housing subsidy in the past, and are liable to pay the resale levy, can now opt to defer the entire payment until they sell or transfer the replacement flat. They may also choose to pay $30,000 upfront, and have the balance amount waived.

- Those aged 55 and above can use retirement funds to purchase a replacement flat, should the compensation for the current flat and CPF money be insufficient.

- A 10 per cent rental rebate for Rochor Centre shop tenants, which will take effect from next month.

Rochor Centre residents happy to have more options
Some may now consider buying new flats in cheaper housing estates
By Tham Yuen-C & Cherie Thio, The Straits Times, 15 Mar 2012

RESIDENTS of Rochor Centre welcomed the changes to the Selective En Bloc Redevelopment Scheme (SERS) announced yesterday, saying they would help them financially with the impending move from their current homes.

This is because some of them have opted to move into the relatively pricey replacement flats reserved for them in nearby Kallang.

Others said they would now consider buying new Build-To-Order (BTO) flats in cheaper housing estates, an option made available to them with the latest tweaks.

The Housing Board yesterday announced several changes to SERS which will benefit all affected homeowners, including those in Rochor Centre.

The housing and commercial complex is being acquired by the Government to make way for the construction of a segment of the new North-South Expressway.

When news about the acquisition broke last November, many residents opposed it, saying that compensation for their flats was insufficient, especially given the relatively high price of the replacement flats in Kallang.

Many Rochor Centre residents The Straits Times spoke to yesterday were still complaining about being forced to move, but welcomed the new concessions.

Mrs Soo Sook Lan, 56, is happy she now has more options.

'I was wondering how we would come up with the money,' said the housewife in Mandarin. She and her husband were intending to buy a four-room replacement flat in Kallang.

Currently, the family live in a three-room unit and will have to top up some $60,000 to get the new flat.

Now that they can choose from other BTO projects around Singapore, they might consider that, she said.

Even if they were to stick with the Kallang flat, being able to use refunded CPF money from the sale of the Rochor flat would help ease their financial burden, she noted.

Another resident, Mr Yeo Kee Cheong, 67, said he would move to Sengkang to be near his daughter and her family.

'The prices in Kallang are too high. In Sengkang, I will pay $270,000 for a four-room flat; in Kallang, it's more than $400,000,' he said, also in Mandarin.

Most residents, though, said they would prefer to remain in an area with which they have become familiar.

'I don't care how much more the Kallang flats cost. I have no choice. I have to move there because there is nothing else nearby,' said Madam Chee Tien Lan, 59, in Mandarin.

The newspaper vendor had been living in the Rochor area from the time she was born.

One person who was clearly happy with the changes was Member of Parliament for Moulmein-Kallang GRC Denise Phua. She has campaigned tirelessly for constituents affected by the land acquisition, holding meetings with the Housing Board and the Ministry of National Development to explain their position.

'It has been a long and hard journey for us in terms of appeals and we are grateful that the authorities are willing to shift their position,' she said.

'Still, reactions from residents will be mixed because the circumstances of each family are different.'

Another group that received good news yesterday was business owners with shops in Rochor Centre.

To help ameliorate the drop in business caused by roadworks and construction in the area, the Housing Board is offering a 10 per cent rebate on rentals for all shop tenants there.

Shoe shop owner Mr Tan, who did not want to give his full name, welcomed the rebate. He will get $600 back for his shop that costs $6,000 to rent.

'It will definitely help, even if it's in a small way,' he said.

But some shop owners disagreed.

Mr P.G. Koo, 45, the boss of an incense and religious goods shop, said: 'How much can 10 per cent do? It can't bring back our customers. Now they think we're closed because of the hoarding.'

A GOOD OUTCOME

'Those of us who advocated this took quite a lot of effort, we had quite long meetings with HDB and MND to explain why we felt strongly that the position had to shift. Minister Khaw Boon Wan was convinced that we had a case, and where possible, he is willing to look at the cases out of compassion. It's been a long process since last year until now. I predict that reactions will still be mixed but I'm grateful that it has come this far.'

Moulmein-Kallang GRC MP Denise Phua