SINGAPORE (EDGEPROP) - Flat owners at the four HDB blocks in Ang Mo Kio that were identified for the Selective En bloc Redevelopment Scheme (Sers) in April will receive a compensation package that is 7.5% higher than earlier estimates.

In a Nov 9 press statement, HDB attributes the higher compensation to resale market movements between the initial estimates done in February 2022 and the Sers announcement on April 7. It also takes into account the condition of each flat following a physical inspection, with well-renovated and well-maintained flats commanding higher market values.

Read also: HDB resale flat prices climb 2.6% in 3Q2022

The four impacted blocks – Blocks 562 to 565 on Ang Mo Kio Avenue 3 – comprise 606 units of mainly three-room and four-room flats. In addition to the compensation for their flat, HDB will also pay flat owners $10,000 in removal allowance to cover moving costs, as well as the stamp and legal fees for the purchase of a comparable replacement flat. (Find HDB flats for rent or sale with our Singapore HDB directory)

Flat owners will be offered new replacement flats that will be built at Ang Mo Kio Drive. The new development will comprise six blocks with a total of 1,065 units, comprising two-, three- and four-room units. Eligible flat owners will receive a Sers grant of up to $30,000 for the purchase of a replacement flat.

Flat owners can choose a new replacement flat with a fresh 99-year lease. They also have the option to choose a three-room or larger new flat on a 50-year lease (if the 50-year lease flat is able to last the youngest flat owner till at least age 95). Flat owners aged 66 and above can opt for a new two-room flexi flat on a short lease, while flat owners who are at least 65 years old also have the option of taking up the Lease Buyback Scheme for their existing flat and buying a short-lease new replacement flat thereafter.

“With these available options, and based on the actual (higher) compensations for flats in the four blocks in Ang Mo Kio Avenue 3, almost all (99%) flat owners can purchase a new replacement flat of a similar flat type or size without cash top-up, and enjoy the benefits of moving into a new flat with a lease that can last them till the age of 95 and above,” HDB states.

The registration for the new flats at Ang Mo Kio Drive will start in 1Q2023. The flat owners will be invited to book their new homes from late 2023, during which the actual selling prices of the new flats will be made known.

Lee Sze Teck, senior director of research at Huttons Asia, observes that with the compensation amount determined, residents will be able to plan for their replacement flat with more certainty.

If not opting for the new flats at the Ang Mo Kio Drive replacement site, Sers flat owners can choose other rehousing options, including buying a new Build-To-Order (BTO) or Sale of Balance Flats unit with a priority allocation of 10% of the flat supply where eligible; buying a flat from HDB’s open booking of flats with the Sers rehousing benefits; or buying a resale flat from the open market using either the Sers compensation amount and an ex-gratia payment of $30,000 plus the Sers grant (if eligible), or the proceeds from the sale of their Sers flat with its rehousing benefits.

Lee notes that the upcoming BTO exercise in November will offer about 9,500 flats, and another 2,900 to 3,900 BTO flats are slated for launch in February 2023. “Residents affected will have more than 10,000 BTO flats across many areas to choose from,” he says.

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