SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS)

SELECTIVE EN BLOC REDEVELOPMENT SCHEME (SERS): **

(Concessionary loans for replacement flats): **

29.

Mr Baey Yam Keng asked the Minister for National Development, with regard to the original Selective En Bloc Redevelopment Scheme (SERS) flat owners who are eligible for concessionary housing loans for their replacement flats, whether the Ministry will consider treating those opting for replacement flats of the same size as having enjoyed only one concessionary loan, since they have been compelled to take up a subsequent housing loan.

Mr Mah Bow Tan: Flat owners are given a generous and attractive compensation and rehousing benefit package under SERS. They receive market compensation for their flats. In addition, they

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are allocated subsidised new flats at a replacement housing site in a good location. Eligible flat owners are also given a further 20% price discount for a replacement flat, of up to $30,000 for a family.

With these generous benefits, the majority of SERS flat-owners are able to "trade-in" their old flat for a new replacement flat of the same flat-type, on a fresh 99-year lease, without the need to take up a loan*. Indeed, some flat owners even enjoy a net surplus.

Given that flat owners are already compensated generously, any HDB concessionary loans taken for the purchase of a SERS replacement flat, often for the purpose of upgrading to a bigger flat type, will be treated as one concessionary loan consumed, for the purpose of future HDB loan eligibility.

2 Out of the 22 SERS sites announced since 2003 to-date, involving 12,300 units of sold flats, about 65% of the flat owners did not have outstanding housing loans for their existing flats when SERS was announced (range between 46% and 80%).

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