Replacement Flat Prices for Residents Affected by SERS

Sir, flat owners affected by the Selective En bloc Redevelopment Scheme (SERS) are given a generous package. First, they are fully compensated for their existing flats and they are paid reasonable expenses for their relocation. Second, they are given an assured allocation of new replacement flats with a new 99-year lease, and at subsidised prices. Third, flat owners who are eligible for a subsidised flat in their own right are then given a further 20% price discount off the BTO prices. This further marks down the already subsidised price of the new HDB flat.

The price discount, at up to $30,000 for a family, is comparable to the CPF Housing Grant for first-timer families buying a resale flat. The discount cap ensures that the SERS flat owners enjoy consistent benefits, as those with the means to buy the bigger flat types will get the same discount as the other SERS flat owners who buy smaller flat types.

In addition, the middle- or low-income first-timer families may apply for the Additional CPF Housing Grant or Special CPF Housing Grant totalling up to $60,000 to help them buy a replacement flat. HDB also provides a concessionary housing loan to eligible SERS flat owners. HDB reviews its policies regularly to ensure that its policies remain relevant and meet the needs of our residents.

Sir, I thank the Minister for the response and I do agree that the SERS package is quite generous and well thought out. I just wanted to get an update on it. Before I ask the other questions, can the Minister first respond to the second part of my PQ, which is, when was the discount formula for the SERS replacement package scheme last reviewed?

I thought I replied in my last sentence. We review our policies regularly and update them as necessary. The discount formula was reviewed, but over the years, we have added new HDB housing grants such as Additional Housing Grant, Special Housing Grant which were not there before.

Sir, I thank the Minister. I understand that the grants have increased. Pegging the SERS discount formula with the basic CPF grant, that is aligned. I also understand that the additional grants over the years have increased especially to support the objectives of, for example, trying to incentivise people to live closer to their parents or grandparents and to assist the lower income families. These are all very noble and very necessary. But the basic grant has not increased very much over the years and from what I know – and that is why I need a confirmation – that SERS discount formula was last reviewed many years ago, probably 20 years ago. I am not sure. Housing prices, however, have increased many folds since that time.

Page: 1461

I wonder if the Minister would still consider looking into the discount formula scheme for the SERS package. If he does look into it and improve it, I wonder if he could implement this improved formula before the Rochor and some other recent SERS projects are confirmed and finalised.

As I have said, while the basic grant, the CPF grant, has stayed put, the total grants have increased.