SINGAPORE: Non-Constituency Member of Parliament Leong Mun Wai (PSP) is "deliberately misleading the public" by "shaping ungrounded expectations" of ...
"With regard to diminishing leases, again, the Government has also been upfront in letting residents know about this, in being clear to home owners ... "The Government has given the expectation first of all, that HDB flat is an appreciating asset and now there's lease decay ... Be that as it may, it doesn't seem very inconsistent with what Mr Leong has been doing." Ms Sim said both SERS and VERS are "not meant to extend a diminishing lease for free to 99 years". "At the same time, the prices of new flats in mature estates have risen much faster because they enjoy the benefits of good amenities and location. "The Government has repeatedly stated it has used the same model and approach as other SERS to compute the compensation for the Ang Mo Kio SERS but the Government has not admitted that the outcome of the Ang Mo Kio SERS is different from other SERS," said Mr Leong, calling it "disingenuous" of the Government.
Mr Leong called the Ang Mo Kio Sers exercise an “epochal event” in the history of public housing. Read more at straitstimes.com.
“If you examine what Mr Leong has been doing, I think he has been reshaping people’s expectations of the scheme... Mr Leong said it differed from past exercises, as residents had to top up to buy a replacement flat of the same size with a fresh 99-year lease. Mr Leong noted that National Development Minister Desmond Lee had cited lease decay as the reason why residents had to top up for new flats. A flat with 57 years left on its lease would fetch a lower value on the resale market than one with 70 years left, she noted. I’m afraid Mr Leong is painting quite an incorrect picture here.” Ms Sim said that while the details of Vers have not been announced, the Government has said compensation “will not be as generous as for Sers” and that there will not be replacement flats.
Sim Ann said Leong Mun Wai was blurring the distinction between market expectation and a policy commitment.
That is not the basis on which SERS compensation is determined. "It was not pegged to the subsidised price of new flats, nor designed to create a windfall. Nor is VERS meant to extend a diminishing lease for free for 99 years. "So we reject the characterisation of lack of empathy. The flats in the Ang Mo Kio SERS are older, around 57 years left. Leong called the SERS at Ang Mo Kio Avenue 3 an "epochal" moment in Singapore's history of public housing. The terms offered will not be as generous as those in SERS. At the same time, the prices of new flats in mature estates have risen much faster because they enjoy the benefits of good amenities and location. In addition, SERS households have been given substantial support. During previous SERS exercises, the flats acquired were generally younger, Sim said. 2022 where 99 per cent of the residents could buy a replacement flat of similar type and size without a cash top-up. Residents who opted for a "more centrally located replacement site" at Clementi Avenue 1 were required to top-up cash.
SINGAPORE — Mr Leong Mun Wai, in an adjournment motion on Monday (9 Jan) about the Selective En bloc Redevelopment Scheme (SERS) at Ang Mo Kio Avenue 3, ...
This is because the original SERS means residents get paid while Ang Mo Kio SERS means residents must pay. “If the Government uses the same formula as SERS to compensate VERS residents, it is certain that the VERS residents will have to pay a lot more cash or move to a cheaper area with the proceeds from VERS. VERS will be doomed if the Government uses the same compensation formula as SERS.” “Therefore, there is a larger price difference between the existing old flats and the new replacement flats in Ang Mo Kio than in Marsiling. “In my opinion, the full explanation is that lease decay has affected prices of old HDB flats in mature estates more than the ones in non-mature estates. The reason given is the lease decay.” said Mr Leong.
He is in fact seeking to raid our national reserves in promising you that he can make HDB flats dirt cheap," said Mr Lee. Read more at straitstimes.com.
HDB flats are not priced to recover the cost of land and construction; if that were so, then BTO prices would have shot up, he added. Part of the growth in value of the reserves is used to fund needs such as healthcare, housing subsidies and security today, Mr Lee noted. Instead, the Chief Valuer independently determines the fair market value that HDB must pay, and considers relevant public housing transactions and specific parameters of the site. far less than what the state land is really worth today,” he said. Will his children and descendants inherit a flat valued as it was back then in the 60s – worth very little compared to today’s prices?” Valuation will not be based on how much the property was sold for historically, he said.