Prime Minister Lee Hsien Loong, announced the expansion of The HIP or Housing Improvement Programme and  Housing and Development Board during his speech in National Day Rally, August 19, Sunday. The expansion covers HDB units built from 1997 down to 1987.

Since 2007, The Housing Improvement Programme recently includes HDB flats constructed until 1986.

There are as much as  230,000 flats in different states which will benefit from improved HIP such as the Tampines, Pasir Ris and Jurong.

Prime Minister Lee revealed programs of HIP 2, which is set to modernize older flats that needs more improvement. HIP 2 is planned to operate in the next 10 years after the first flats aged 60  to 70 years old.

He further added that Housing Board Development will introduce a new system called as Voluntary Early Redevelopment Scheme or VERS. This is anticipated to operate for more or less 20 years thus giving the chance for homeowners to decide whether if they will sell their HDB units to the government after hitting 70 years.

VERS is one government’s long-term plan to keep on redeveloping districts and will allow homeowners to market their HDB unit prior to the expiry of the lease.

PropertyGuru’s chair Lewis Ng told,” Our newest Consumer Sentiment Survey, among respondents, 36 percent showed some reactions related to the depreciation value of older units, and 35 percent are hesitant not be able to pay for a good housing during retirement.

Explaining this, PropertyGuru back up the system to help the people sustain the livability and value of their flats. While the authority considers the new option like the VERS, we consider it equally significant to remember the affordability of replacement developments. This is captious for those Singaporeans who are anxious when it comes to financial commitments related to replacement homes more so if  they are on in their way to retirement.”

In an alliance, Christine Sun, the orange Tee & Tie’s chair of research & consultancy told, the three new system appear broad and innovative thus would be of big help to HDB homeowners.

” Likely almost all units will be modernized twice prior to the expiry of the lease, Singaporeans perhaps should not worry that much in depreciation value of their old flats now. As a matter of fact, these new system guarantees older flats that are upgraded in the future can assist existing unit owners to sustain quality, healthy living and be able to preserve the value of units or flats.”

Significantly, the new system assures that there are enough lands to be utilized for the children of these days and housing will remain cheap for the young generation, ” she stressed.

However, Lee Sze Teck,  research head for Hutton Asia reiterated that VER is not a guarantee that it will lower the uncertainty experienced by HDB unit lessees.

Furthermore, Alex Yam, the executive officer of Government Parliamentary Committee for National Development, told a prestigious entity that VERS may produce enmity over HDB flats or units owners who wish to sell and those who are not in favour.

“What percentile are you chasing it? Are you hoping it would be the same as the private sector? He also brought out the concern on how Housing Board Development will gauge the value of the unit or flat and how CPF would be reimbursed.