Can You Really Make a Big Profit From an Old HDB Flat Through VERS? 🤔
Can You Really Make a Big Profit From an Old HDB Flat Through VERS? 🤔
When people see an old HDB flat, they might think:
“If VERS comes along, wouldn’t I get a big payout?”
But I think that could be a dangerous assumption.
A Business Times article today raised an interesting question.
The Government is proposing to lower the collective sale threshold for older private developments to 70% for projects aged 40–59 years, and 65% for those 60 years and above.
So the article asks:
Could a similar 65% threshold eventually work for VERS?
But importantly, 65% is not a Government proposal for HDB.
And HDB faces a much bigger challenge.
Around 240,000 HDB flats were built in the 1970s, and more than 300,000 in the 1980s.
That’s over 550,000 flats from just two decades.
So we’re potentially talking about hundreds of thousands of ageing HDB flats, not just a few private developments.
If VERS is rolled out on a large scale, the Government has to consider:
💰 How much will it cost?
🏠 How many replacement homes are needed?
🚚 How many households need to be relocated?
That’s why I don’t think VERS should be treated like a lottery ticket.
The Government has previously said VERS should not create a “lottery effect” or become a wealth-creation scheme.
So if you’re buying a 40- or 50-year-old HDB because you believe:
“The Government will eventually buy it back at a high price.”
—I’d be very careful.
An old HDB can still be a good purchase.
But the price, remaining lease, location and actual resale demand should make sense first.
Don’t buy it because you believe VERS will rescue you.
What do you think the VERS threshold should be?
80%, 70%, or 65%?
