Ang Mo Kio Sers: HDB addresses concerns of residents over topping up money for replacement flats
Having to move house can be intensely emotional and stressful.
So it's little wonder that news of a recent Selective En bloc Redevelopment Scheme (Sers) exercise in Ang Mo Kio has caused some distress among a few residents in that estate.
On April 7, the Housing Development Board (HDB) announced that blocks 562 to 565 of Ang Mo Kio Avenue 3 have been earmarked for Sers where flat owners will be given that option to move to new replacement flats at nearby Ang Mo Kio Drive.
This new site is about 1km away from their existing flats and this move is projected to complete in year 2028, with residents moving out of their existing flats by the first or second quarter of that year.
Understandably, this news has caused some unease among residents, with some 606 units affected by this announcement.
Some are worried about topping up money for similar-sized replacement flats and that they would not be able to secure a housing loan to pay for the shortfall because of their age.
Others are concerned about having to downsize to a smaller unit if they don't want to top up money for a more expensive similar-sized unit.
In a Facebook post today (June 15), HDB said that they are aware of online discussions regarding the recent Sers announcement and that they will be exploring options to assist these owners.
In the post, the agency said that flat owners will be offered new replacement flats with 99-year leases, "almost double the lease of the existing flats by the time the owners move out in end 2027".
Completed in 1979, the flats in these four blocks are around 43 years old, and comprise mainly three-room and four-room units.
HDB added that the new flats are priced with a generous subsidy, making their prices considerably lower than comparable resale flats in the vicinity.
Based on the estimated selling price of the replacement flats, flat owners will generally be able to purchase a replacement flat of a similar flat type with the compensation amount provided, said the housing agency.
For example, existing three-room flat owners will be able to buy a new three-room flat at the replacement site.
"However, as there are two flat sizes for the four-room flats on offer at Ang Mo Kio Drive, owners of four-room flats who wish to buy the larger four-room flat may need to top up with additional cash," said HDB, adding that these flat owners will not need to do so if they choose the smaller four-room flat type.
The agency added that it understands the concerns expressed by some seniors about the need to top up in order to buy a similar-sized replacement flat, and that they do not need the fresh 99-year lease that comes with the new replacement flats.
"We are looking at the feedback and will continue to explore options to assist these owners," said HDB.
Set up in 1995, Sers was intended by the government to earmark older HDB precincts for redevelopment, providing residents the chance to move to a new home with a new 99-year lease and the opportunity to continue living in proximity of current neighbours.
To date, more than 41,000 households in 82 sites, including the latest Ang Mo Kio site, have benefited from Sers, reported the Business Times last month.
Back in 2015, some buyers were reportedly paying premium prices for Tanglin Halt Sers flats in the resale market, reported the Straits Times then.
Property experts said then that some elderly owners might have accepted a modest sum for their units as they wanted to cash out either to move in with their children or downgrade.
READ ALSO: Hard to say goodbye: Tanglin Halt residents to move out as 31 blocks slated to be torn down under Sers
khooyihang@asiaone.com
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
