Selective En Bloc Redevelopment Scheme
Housing and Development Board
Singapore

The Problem

The Housing and Development Board (HDB) is the public housing authority in Singapore. It takes charge of providing quality and affordable housing to the nation. Currently, 81% of the population (or about three millions) live in HDB flats, and 95% of whom own their flats on 99-year leases.

To address acute housing shortage prevalent at its inception in 1960, and the strong housing demand during the initial years of nation- and economy-building in the 1960s-1970s, HDB built about 360,000 flats between 1960 and 1980, and this represents close to 40% of its housing stock built to-date. As these flats age over the years, the HDB has embarked on the various upgrading programs since 1991 to rejuvenate the old housing precincts, so that the living conditions can be brought closer to those in the new estates.

However, there are some old precincts where the development intensity is low, and they are economically or functionally not viable for upgrading. Merely keeping them in their existing layout will perpetuate the sub-optimal land use. Also, compared to the new estates served by modern facilities and populated by young and energetic families, the old estates with dated facilities and majority elderly residents (who have been living there for decades) have fallen pale. This has affected their attractiveness to younger Singaporeans. There are also issues on the vibrancy of the local communities, and the sustainability of the supporting amenities such as shops, eating places, schools and public transport. Some of these amenities have to be closed as a result, leading to a vicious cycle in the degeneration process.

To regenerate old public housing estates, there is a need for new developments to take place to bring in more people, younger families and more activities. However, there is limited vacant land in the old estates for new developments. For the residents living in these old precincts, many may find the upgrading programs inadequate in addressing their needs. For example, due to inherent design deficiencies, some old blocks cannot be retrofitted with elevators to stop at the same level where the flats are situated. The residents, including the elderly and the handicapped, need to negotiate some flights of staircase in moving vertically in the block. There are also recurrent problems of spalling concrete and ceiling leakage, which cannot be eradicated despite the repair works due to the building materials used and the workmanship then. For these old precincts, there is a need for a mechanism to decant the flat owners and redevelop the existing site.

Solution and Key Benefits

 What is the initiative about? (the solution)
The Selective En bloc Redevelopment Scheme (SERS) was introduced in 1995 as part of the Government’s Estate Renewal Strategy for old public housing estates. Under SERS, selected old sold flats with redevelopment potential are acquired under the Land Acquisition Act for redevelopment to optimize land use. The residents involved are given a unique opportunity to upgrade to new and better flats nearby served by modern facilities and set in a familiar neighborhood with minimal disruption to their routines. With the trading of old flats with dwindling leases for new ones with fresh 99-year leases, the flats will remain a store of value to the owners. Also, with the rehousing of the residents en bloc, the family and community ties built over the years can be preserved. The injections of new developments through SERS also help to physically rejuvenate the old estates, as well as revitalize the demographics and economic profiles of the residents as younger residents move into these estates. Overall, SERS has given old estates a new lease of life.

Affirmative Social Benefits:
According to the HDB’s biennial surveys conducted in 2001, 2003 and 2005 on SERS residents who have moved to their new replacement flats, an overwhelming 85-90% of the survey respondents expressed strong support for SERS. 95-97% were happy that they were able to live in a better living environment; 94-97% were happy that they remained in the same estate; and 93-96% were happy that they could live near their previous neighbors. Furthermore, 95-97% of the survey respondents felt that their new living arrangement was ideal; and 89-93% felt a sense of belonging to their estate. These survey findings have affirmed the popularity of SERS and its social benefits, despite that SERS is involuntary displacement involving more than a thousand residents at each exercise.

Optimization of Land Use:
Precincts selected for SERS are those where there are clear economic benefits to the State. Such benefits are assessed by considering the redevelopment potential of the site, and taking into account the cost of acquisition, re-construction, as well as other related costs. Furthermore, SERS serves the strategic intent of the State to optimize land use, given Singapore’s land scarcity.

Rejuvenated Old Estates:
Under SERS, about 46,000 new replacement flats have been built, of which 70% were sold to the affected residents and 30% were sold to public applicants who are generally young married couples. More importantly, SERS has freed up land in the built-up old estates for new developments, which is instrumental in regenerating the old estates.The old towns/estates in Ang Mo Kio, Bukit Merah, Queenstown and Toa Payoh are showcases of such a transformation made possible through SERS.

Actors and Stakeholders

 Who proposed the solution, who implemented it and who were the stakeholders?
The idea of SERS was conceived, designed and developed in early 1990s collectively by officers working in HDB and Ministry of National Development [which is the supervising ministry of HDB]. Besides the MND and HDB which are responsible for the planning and implementation of the SERS program, the other key stakeholders of the SERS program are:

- Ministry of Finance, Ministry of Law, Singapore Land Authority and Chief Valuer’s Office, which approve the funding of the SERS projects, and the use of the Land Acquisition Act for SERS;

- The Master Plan Committee, Urban Redevelopment Authority and other competent authorities, which approve the planned land use and intensity of the old precincts selected for SERS;

- The local Grassroots Organization (GRO) Adviser and the GROs, who give feedback to the MND/HDB on the residents’ reactions towards the SERS implementation, and work closely with the HDB in addressing the residents’ needs and concerns;

- The residents and shopkeepers who participated in the program.

(a) Strategies

 Describe how and when the initiative was implemented by answering these questions
 a.      What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
The objectives of the SERS program are:

a) Enable the State to achieve better land use;

b) Help residents to upgrade to new flats with better living environment;

c) Retain existing community ties; and

d) Attract young families to live in the mature estates.

Precincts selected for SERS are those where there are clear economic benefits to the State. SERS serves the strategic intent of the State to optimize land use, given Singapore’s land scarcity. As it is a strategic decision to implement SERS, the Government has decided on the use of the Land Acquisition Act to compulsorily acquire HDB sold units (mainly flats, with occasional presence of sold shops and eating houses) identified for redevelopment under SERS.

Nevertheless, there is much judicious planning by the MND and HDB in implementing each SERS project. This includes:

a) Generous benefits package for the residents. The flat owners under SERS need not go through the hassle of looking for their own alternative housing when their affected flats are due for demolition. HDB offers them new replacement flats nearby at generously discounted prices, and these new flats come with the latest design and modern facilities. The benefits package for the flat owners, comprising market compensation for the affected flat and comprehensive rehousing benefits, has enabled them to afford new and better housing.

b) Identification of a suitable site for building of new replacement flats. The new replacement precinct should be near the SERS precinct to ensure that the SERS residents can continue living in a familiar neighborhood with minimal disruptions to their routines. Furthermore, by rehousing them en bloc, the family and community ties built over the years at the SERS precinct can be preserved when the residents move together to the replacement precinct.

After satisfying the SERS rehousing needs, HDB will offer the surplus new flats to public applicants. As these flats are located in old estates with established facilities and located nearer to the city centre, they are very well sought after. Furthermore, the land freed up through demolition of the old sold units under SERS will enable new developments to take place in the old estates. These new developments will add interest to the skyline of the old estates, renew the physical fabric, enrich the local demographics, and make old estates more appealing for the young families to move into and thus addressing the greying trend in these estates.

(b) Implementation

 b.      What were the key development and implementation steps and the chronology? No more than 500 words
Since the launch of the SERS program in 1995, 71 old precincts involving 32,700 sold flats and 300 sold shops/eating houses in various old estates, have been announced for SERS. Among these 71 precincts:

a) 46 precincts (or 65%) have been cleared, of which redevelopments at 24 precincts have been completed or are underway, and the development plans for the balance 22 precincts are being firmed up; and

b) 25 precincts (or 35%) are under the various stages of SERS implementation.


The implementation steps of each SERS project are set out below.

(A) SERS Announcement, Compensation and Rehousing:
(1) Announce SERS (Schedule : N.A.)- HDB officers go door-to-door to deliver the SERS information package, and explain SERS.

(2) On-site SERS exhibition for one week (Schedule : Fifth to eleventh day after annuoncement)- HDB officers will handle residents’ queries with ready household data on hand. New replacement day after announcement flat information, architectural models, etc. on display

(3) Serve Acquisition Notice (Schedule: Five days after announcement)- HDB officers acting as the Collector of Land Revenue (CLR) under the Land Acquisition Act will serve the Acquisition Notice to the owners. In the Notice, the owners will be invited to attend the Collector’s Inquiry at appointed date and time (see S/No. 5).

(4) HDB’s appointed private licensed valuer inspects SERS units to assess market values(Schedule : One to two weeks after announcement)

(5) Conduct Collector’s Inquiry with the owners (Schedule : One month after announcement)- CLR will meet up with individual owners to verify their ownership in the SERS unit, and clarify their doubts. CLR will also conduct financial counseling with the flat owners.

(6) Inform flat owners of their rehousing benefits (Schedule : Two months after announcement)

(7) Serve Compensation Notice (Schedule : Nine months after announcement)- HDB officers will go door-to-door to inform the owners about their actual compensation. Financial counseling on various rehousing options will also be carried out with the flat owners.

(8) Flat owners to register for replacement flat (Schedule : One year after accouncement) - HDB officers will also be on site to help residents, especially the elderly, to complete application forms.

(9) Conduct selection exercise (Schedule : 1.5 year after announcement) - HDB will send the flat owners the detailed price list for replacement flats and sale brochure of the new replacement flats, to invite them to select a replacement flat.


(B) Moving to New Replacement Flats

(10) Issue keys to replacement flats (Schedule : After completion of new replacement flats) - HDB will invite the flat owners to collect keys to the replacement flats, and give them four months to renovate their replacement flats.

(11) Take possession of vacated (Schedule : After the flat owners have moved out of their SERS flats) - CLR will inspect the vacated flats and take over SERS flats from the owners. Demolition of the vacated blocks will start after the last occupants have moved out.

(C) Living at New Replacement Precinct

(12) Grassroots organizations to hold (Schedule : Six months after the flat owners have moved into their new homes) - SERS completion ceremony cum welcome party

(c) Overcoming Obstacles

 c.      What were the main obstacles encountered? How were they overcome? No more than 500 words
As old HDB sold units selected for SERS are compulsorily acquired under the Land Acquisition Act, some owners are unhappy that they are not consulted beforehand, or there is no polling for the owners to decide collectively whether they want SERS. They may also make unreasonable demands on the Government since the relocation is forced upon them. There are also owners who are apprehensive and dubious about the SERS.

For some owners who have financial or family problems, they are worried about having to move out and incur costs in the process. Some owners make invidious comparison with their neighbors over the compensation or the rehousing benefits, and demand that they be given more. There are also some owners, especially the elderly or the singles, who find their old homes comfortable, and simply wish to stay put in nostalgia.

The challenge in implementing the SERS is therefore to convince the owners of the benefits under SERS. To win their acceptance and support, the HDB has put in place various communication channels as follows to explain the benefits, and guide them carefully through the SERS implementation:

a) HDB officers’ door-to-door distribution of the SERS information package, in four official languages, on the day of SERS announcement. The officers will also explain personally to the residents what SERS is all about.

b) On-site SERS exhibition for a week. HDB officers are on hand to answer queries, and to provide financial counseling on the various rehousing options. When the on-site exhibition is over, the exhibition will remain available on-line at the HDB InfoWEB at www.hdb.gov.sg.

c) Collector’s Inquiry, when the HDB officers acting as Collectors of Land Revenue meet up with individual owners at the HDB office. This provides the owners another opportunity to clarify their doubts about SERS.

d) HDB officers’ house-to-house visits to inform the owners about their actual compensation, and to provide financial counseling with the flat owners.

e) Registration of SERS flat owners for allocation of replacement flats. HDB officers will be on-site to help the residents, especially the elderly and the illiterate, to complete their application forms.

f) Assignment of HDB “buddies” (the officer in-charge of rehousing) who can speak the same language as the flat owners. The flat owners will feel at ease speaking with their “buddies”. They may also ring the toll-free SERS enquiry line, or email to the HDB.

g) Availability of the SERS information on-line at the HDB InfoWEB. This enables the SERS flat owners to obtain information round the clock, and at the comfort of their home.

The HDB conducts biennial surveys on SERS residents who have moved to their new replacement flats, to gather feedback for policy review and service improvement. There are also conscious efforts put in to create a brand name for the SERS program. With positive publicity, and the use of a cheerful logo and tag line “A New Beginning”, HDB residents generally identify SERS as a good scheme, which achieves win-win for the State and the people.

(d) Use of Resources

 d.      What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
The various resources needed for implementing the SERS program are elaborated below.

Financial Resources. Funding is needed for:

a) Payment of fair compensation to the owners for the acquisition of the old units. There are also costs involved in demolishing vacated old blocks. To-date, these costs is about US$4.5 billion for the 71 precincts announced for SERS.

b) Development cost, which comprises land and construction costs, of new replacement precinct. The cost can nevertheless be defrayed partially by the sale proceeds of the new units.

Technical Resource.
The implementation of the SERS program is a multi-disciplinary work, which requires the following technical expertise:

a) Town planners, who together with architects, traffic engineers, etc. work out the planned land use and new intensity for the old precincts studied for the SERS;

b) Architects, engineers, quantity surveyors, project managers and other professionals, who form the consultancy team to design the new replacement precinct, and take charge of the construction;

c) Financial professionals who, with the inputs from valuers, town planers and architects, conduct economic viability study for potential SERS precinct.

d) Valuers who assess the market values of the SERS units for compensation purpose;

e) Sales and marketing professionals who sell the new replacement flats, and promote the SERS program and carry out brand management;

f) Public communication professionals who manage the media, and help prepare easy-to-understand information leaflets for SERS residents; and

g) Engineers who plan the service diversion and demolition of old blocks under SERS.

These technical professionals, with the exception of (b) and (d), are employed directly by the HDB, The work for (b) and (d) are out-sourced, to avoid duplication of services readily available in the private sector.

For service delivery to SERS residents, the HDB relies mostly on personalized face-to-face interactions. This is necessitated by the profiles of the customers, who are generally elderly or not well educated. Also, given the involuntary nature of SERS, it is imperative to have direct contacts with the residents, to effectively allay their concerns. Nevertheless, the HDB has observed that the children of some elderly SERS flat owners are helping them in the relocation progress. These children are IT savvy and hence, the development of the one-stop internet portal “e-SERS” to offer SERS residents fast and convenient access to various e-services - from simple information publication to interactive and full transaction functions.

Human Resource.
The HDB officers who take charge of the rehousing and compensation matters need to be tactful in dealing with the owners under SERS. They need to be good listeners, professional in handling requests, and effective in managing the customers’ expectations. Good verbal and written communication skills are needed, and the ability to speak dialects will be an advantage for the SERS flat owners to strike a cord with them.

Sustainability and Transferability

  Is the initiative sustainable and transferable?
The implementation of SERS requires huge funding from the government for the acquisition and redevelopment. Nevertheless, as the SERS program serves important economic and social objectives, there is no lack of government funding for suitable SERS projects if they are adequately spaced out.

The HDB conducts biennial surveys on SERS residents who have moved to their new replacement flats, to gather feedback for policy review and service improvement. It also carries out post- implementation reviews of the SERS program. These have helped to ensure that the SERS program stays relevant and effective in meeting its various objectives. Furthermore, through careful implementation, management and publicity, the SERS program has remained, for more than a decade, a popular program among the residents living in the old public housing estates, as they see SERS as achieving win-win for the State and the people.

As the HDB is the sole public housing authority in Singapore and the SERS program is unique to public housing, it is not applicable to other areas of public service in Singapore.

At the international level, the various success factors of the SERS program, such as fair compensation for property resumption, generous rehousing benefits for alternative housing, and its implementation mechanism, can be considered for application in other countries where appropriate. Indeed, redevelopment is important to sustain the built environment, and prevent it from degenerating into a slum. The challenge in acquiring land for redevelopment lies on how to rally the incumbent occupants to support and even welcome the relocation, so that redevelopment can be proceeded with smoothly and expeditiously, and the public image of the authority is not tarnished.

Lessons Learned

 What are the impact of your initiative and the lessons learned?
With more than a decade of experience in implementing the SERS, the key elements in achieving success for a SERS project are:

a) Generous benefit package. As the residents are required to move out from their homes to facilitate the redevelopment, it is important that the government offer them a fair and attractive package of benefits. Since the program will result in economic gains to the State through intensification of land use, the government could share the benefits with residents to reach a win-win situation.

b) Meticulous planning. To ensure the success of a SERS project, detailed planning is required to ensure that the program will be welcomed by the people. New replacement precinct at a good location near the SERS precinct should be provided. This is because residents, especially the elderly, generally prefer to continue living in a familiar environment and enjoy the same facilities, e.g. market, shop, eating place, park and public transport, as their current flats. In addition, a wide range of replacement flats should be provided to offer a comprehensive range of rehousing options to suit individual families’ preference and affordability. To achieve this, a detailed analysis of the residents’ profiles and their financial status should be carried out so that measures could be devised to address potential issues and needs.

c) A comprehensive communications plan. To some residents, especially the elderly and the less literate, SERS can be a complicated scheme. There is therefore a need to “hand-hold” the SERS residents, and guide them through the entire implementation process. Other than providing print materials on the project, interactions at personal levels and providing sufficient lead time for residents to comprehend the information are found to be essential. The availability of fair and transparent appeal channels is also crucial in gaining acceptance by the residents.

d) Managing the media expectations of SERS residents. HDB provides regular and comprehensive press releases on the program and survey findings. This would facilitate better public understanding on the benefits of SERS. There are instances when SERS residents approach the media with their individuals’ concerns. Such issues may be played up in the media, and affect other residents' sentiments towards the SERS. Hence, it is very important to respond promptly to any issues raised, and engage the media to facilitate objective coverage of the situation

Contact Information

Institution Name:   Housing and Development Board
Institution Type:   Government Agency  
Contact Person:   Mien Joo Heng
Title:   Acting Deputy Director (Projects and Development)  
Telephone/ Fax:   +65 6490 3801
Institution's / Project's Website:   +65 6490 3811
E-mail:   hmj1@hdb.gov.sg  
Address:   480 Lorong 6 Toa Payoh
Postal Code:   310480
City:  
State/Province:  
Country:   Singapore

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