Majority of HDB flats not qualified for SERS

Expired leases will be returned to HDB instead.

National Development Minister Lawrence Wong made it clear that the vast majority of HDB flats will not qualify for the Selective En Bloc Redevelopment Scheme (SERS), where the State buys back the flats from owners at market rate and offers residents discounted new units elsewhere.

According to OrangeTee's HDB Market Pulse, HDB flats with expired leases that do not qualify for SERS will be returned to the HDB.

The impact of the clarification is expected to be mild, OrangeTee said, as the majority of old HDB flats still have over 50 years of lease remaining.

"Besides the remaining lease, there are other factors which affect the resale price of an HDB, such as current economic conditions, local supply and demand dynamics, availability of nearby amenities, upgrading works etc. For example, the prices of old 3 room flats in Bukit Merah have seen an uptrend in prices from 2001 to 2013 despite their declining lease," it said.

However, OrangeTee argued that the announcement serves as a reminder for people to exercise prudence when buying an old HDB flat as the resale HDB market may not experience a similar boom in prices as before in 2006 to 2012.

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