SELECTIVE EN-BLOC REDEVELOPMENT SCHEME

Mr Chiam See Tong asked the Minister for National Development, in view of the glut in the property market whether (i) he will consider having a moratorium on the Selective En-bloc Redevelopment Scheme and, if so, (ii) for how many years.

The Minister for National Development (Mr Mah Bow Tan): Mr Speaker, Sir, the Selective En-bloc Redevelopment Scheme (SERS) is part of the Government's estate renewal plans for old HDB estates. It enables optimisation of land use, while enabling Singaporeans to upgrade to new and better housing. Existing community ties are also preserved. Through redevelopment, old estates are rejuvenated. Thus, SERS benefits both the nation and the residents.

Identification of suitable precincts for SERS is an on-going process. It takes into account several factors, including the potential for redevelopment and the Government's budgetary position. The Government will continue to progressively announce precincts for SERS if suitable ones can be identified. It generally takes about 4-5 years after announcement for a SERS site to be ready for new development. Thus, the selection of new SERS sites now should not have an immediate impact on the property market.

Mr Chiam See Tong: Sir, I understand that 4-storey walk-up flats are also involved in this SERS programme. If these walk-up flats are pulled down, naturally high-rise buildings would be put up in their place. Would that not add to the glut in the property market if high-rise buildings are built in place of the walk-up flats?

Mr Mah Bow Tan: In the first place, as I said, I think the glut in the property market is not something that is permanent. There is a cycle in the market. Eventually, the glut will be taken up, and there will be a new status quo in the market. So, it is not something that is permanent. If there is a permanent glut in the market, then I think we would all be in serious trouble.

The SERS programme is a very long-term programme. What we have announced for SERS now, the redevelopment would only take place, say, five years at the earliest. By that time, hopefully, the glut would have been removed. I do not think the Member should have any cause for concern over that aspect. Yes, it is true that when we do SERS, we are going to increase the potential for redevelopment, ie, we tear down a 4-storey block, or even a 11-storey block for that matter, and we are going to build something which will be much more intensive. And that is one of the rationales for SERS. That is indeed what we are hoping to do. Because, in the long run, Singapore is short of land and we have to make sure that we maximise every piece of land that we have.

Mr Chiam See Tong: Sir, in view of the many properties in the market that are left unsold, would it be more rational not to add more new flats into the market? Probably, the Government can make sure that SERS programmes are carried out rationally so as not to add more property into the market.

Mr Mah Bow Tan: I think there are two matters. One is the fluctuation in the property market. There is a glut at the moment. A few years ago, there was a shortage. So this is a natural fluctuation of the property market. Then there is the other matter which is SERS, which is a very long-term programme. We will do SERS as and when we find suitable redevelopment opportunities. These sites will either be redeveloped immediately, and the effects of this redevelopment will be felt, say, five years down the road, or we may decide to hold the sites as part of the land bank. So, whether we decide to build or not is a separate matter from SERS. But the idea of SERS is to free up land for redevelopment.

Mr Speaker: Since we have time and Mr Steve Chia has raised Question No. 3, would the Minister for Education give his reply?