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VERS and Ageing HDB Flats: Should You Sell Now or Wait?
- Vivian Chong
- Aug 28
- 9 min read
Updated: Oct 22
If you own an older HDB flat, I am sure you have thought about this: What happens when my flat gets older and the lease keeps running down?
This is where the Voluntary Early Redevelopment Scheme (VERS) comes in.
Ever since the government announced this scheme, many HDB owners have been asking me: “How will VERS affect the value of my flat?”
And the big one:
Should I sell now, or wait for VERS?
What is VERS? Let’s talk about it in simple terms.
What Exactly is VERS?
VERS stands for Voluntary Early Redevelopment Scheme.
The government initially announced this in 2018, and National Development Minister Chee Hong Tat recently provided more details to address this major concern for many HDB owners: what happens as our flats age and the lease diminishes?
Unlike SERS (Selective En-bloc Redevelopment Scheme), which is very rare and usually targets estates with high redevelopment potential, VERS is designed to be more inclusive. Instead of a handful of lucky blocks, VERS aims to cover more older estates once they reach around 70 years into their 99-year lease.
Here’s how it works:
The government will identify precincts (groups of HDB blocks) that may qualify.
Residents in those precincts will be given a chance to vote.
If the majority votes “yes”, the flats will be returned to the government in exchange for compensation.
Homeowners will then have the option to buy a brand-new HDB flat with a fresh 99-year lease.
If the vote doesn’t pass, the flats simply continue on their existing leases until they eventually run down. That’s why it’s called voluntary — the choice lies in the hands of residents, not the government.
The main difference between VERS and SERS is also in the outcome.
With SERS, owners often get generous compensation and rehousing benefits, since the government chooses sites with high redevelopment potential.
With VERS, however, the compensation is expected to be more modest. The real benefit lies in giving homeowners of ageing flats a way forward, instead of letting the property value keep declining as the lease shortens.
In short, VERS is less about windfall gains, and more about providing stability and planning certainty for homeowners of ageing HDB estates.
What VERS Means for the Real Estate Market
In my opinion, VERS changes the way Singaporeans think about ageing HDB properties.
During my years as a real estate agent handling HDB flats with expiring leases, homeowners have consistently shown concern about their leases ending. It is normal to worry that their flats might depreciate in value.
VERS offers some clarity to this situation, but it could also change how both sellers and buyers behave in the market.
1. Older flats will hold value more steadily
With VERS in the picture, ageing HDBs are less likely to experience steep price drops as they get older. Buyers know that, at around the 70-year mark, there might be an exit option. This offers some peace of mind.
However, unlike SERS, you shouldn’t expect prices of older flats to suddenly jump — the government has already signalled that VERS compensation will be modest.
So instead of sharp rises or falls, we’re likely to see flatter, more stable pricing trends for older estates.
2. Buyers will remain cautious
Even with VERS, the usual rules apply.
With ageing flats, buyers face tighter restrictions on how much CPF they can use and how much loan they can take. These rules will continue to limit demand for ageing properties.
Younger buyers in particular may prefer newer flats with longer leases, unless the location is very attractive. So while VERS softens some of the risks, it doesn’t remove the financial barriers that come with older flats.
Read more about how the regulations limit the demand for ageing flat: Should You Keep Or Sell Your Ageing HDB Flat?
3. Sellers need to adjust expectations
For HDB owners hoping for a “jackpot” like SERS, VERS can feel less exciting.
Compensation will not match SERS levels, and prices of older flats are unlikely to soar just because VERS exists.
Instead, sellers need to be realistic: VERS is there to provide certainty and peace of mind, not to boost resale values.
The positive takeaway is that flats won’t simply depreciate into nothing, but the market will still price them fairly based on lease balance and demand.
4. More long-term planning in real estate
One of the biggest impacts of VERS is how it encourages both homeowners and buyers to think longer term.
Instead of chasing speculative gains, people will need to make housing decisions based on needs, lifestyle, and financial planning. This shifts the conversation from “How much can I profit from my flat?” to “How do I plan for my next home as my flat ages?”
Throughout my real estate career, I have worked with many clients to right-size their homes — moving from larger, higher-value properties like landed houses and condominiums to HDB flats.
This transition gives them the financial freedom to pursue what they want, and still enjoy the convenience of excellent locations and quality amenities that many HDB estates offer.
Should You Sell Your Ageing HDB Flat Now?
This is the million-dollar question that many homeowners are asking right now.
And the truth is, there isn’t a one-size-fits-all answer. Whether you should sell your ageing HDB flat really depends on your personal situation, your long-term plans, and what matters most to you.
Considerations to sell now:
Flat is more than 40 years old
At this stage, prices are usually still decent, but buyers may start becoming cautious.
As the lease gets shorter, the value of the flat depreciate. Demand will also shrink due to the regulations (eg. CPF and financing limits) for properties with ageing lease. This impact the price and the time it takes to sell in the future.
Acting earlier allows you to catch the market while interest is still there.
You have plans to upgrade
Whether you are eyeing a newer HDB flat, an executive condo, or even a private property, selling earlier gives you more options. You will likely have more cash proceeds and better access to financing compared to waiting another 5–10 years, when loan restrictions and CPF usage rules may limit buyers.
Recently, I met with a lead who reached out to me as they are contemplating selling their 47-year-old HDB flat in Bedok. The owners, who are in their 40s, are planning to upgrade to a condominium in East Coast. However, they are debating whether to proceed now or wait a few more years until their income and savings increase.
I did a financial plan for them to determine the cash proceeds and the amount of CPF they will have after the sale of their current home. I also connected them with my regular banker, who did an In-Principle Approval (IPA) for the loan they could secure.
Although their income will likely increase in a few years, the loan tenure will be shorter as they age. Additionally, the selling price of their current home may decrease if they sell later.
This exercise gave them clarity and they make a swift decision to proceed with the move now.
If you don't want the uncertainty of VERS
One of the biggest misconceptions about VERS is that every ageing HDB flat will eventually be included.
The truth is, VERS is not automatic.
Not every estate will be selected, and even if your block is shortlisted, it still requires a majority vote from your neighbours to proceed.
For homeowners who prefer clarity and control, this can feel risky. After all, we are talking about one of the largest financial assets in your life.
By choosing to sell your flat earlier, you remove the guesswork. You decide when to move, how to plan your finances, and what kind of home to transition into next.
Selling earlier may not guarantee the highest price, but it gives you certainty. You are in charge of your own timeline, instead of waiting for government announcements or relying on your neighbours’ decisions.
When it might make sense to hold on:
Plan to stay long term
Some homeowners simply love where they are - their current home, the familiar community, and the neighbourhood they’ve built memories in. Maybe it’s the nearby market you’ve been visiting for years, the neighbours who have become friends, or the comfort of being in a place that truly feels like home.
If you are settled and content, with no plans to move or upgrade, then holding on to your flat is a perfectly reasonable choice. After all, not every property decision needs to be about chasing profits.
For many, the sense of stability, belonging, and convenience is worth far more than market timing.
Staying put also means avoiding the stress of moving, adjusting to a new environment, or taking on a new mortgage. If your priority is lifestyle and peace of mind rather than financial returns, continuing to live in your ageing HDB flat can absolutely be the right decision.
Your HDB flat is in a prime location or have a unique feature
Flats located in central, well-connected areas or those with unique features, such as a sea view, often retain their attractiveness, even as the lease durations decrease.
On top of that, flats in such prime or strategic areas may also stand a better chance of being selected for VERS in the future.
From a planning perspective, the government is more likely to prioritise redeveloping well-located estates to make way for newer, higher-density housing that can benefit more Singaporeans.
This doesn’t mean prices will skyrocket, but it does provide some reassurance for owners living in these hotspots. Even with ageing leases, location continues to be a powerful factor that shapes both demand and redevelopment potential.
Comfortable with a fair compensation
VERS compensation is meant to provide a safety net, not a jackpot.
Unlike SERS, where selected owners often enjoy a significant upside, VERS is structured to give homeowners a fair payout when their flat is returned.
The intention is to ensure that residents can transition smoothly into a new home, not to generate windfall gains.
So if your main priority is simply to have a comfortable roof over your head rather than making big profits from your property, holding on to your flat can be a stress-free and practical choice.
You get to enjoy the familiarity of your home and neighbourhood, and when the time comes, you’ll still have the reassurance of some compensation and the chance to move into a fresh lease.
In other words, VERS offers peace of mind — it cushions the downside of an ageing flat without creating unrealistic expectations of high returns.
Conclusion
After years of uncertainty about the future of aging flats in Singapore, VERS offers homeowners of aging HDB properties some clarity and assurance.
So if you’re wondering whether to sell now or wait, ask yourself this: Do I want control and certainty today, or am I willing to wait and take a chance on VERS?
At the end of the day, your HDB flat is first and foremost a home. Plan ahead, make decisions based on your family’s needs. Afterall VERS is a bonus option — not the main plan.
Thinking About Your Next Move?
If you own an ageing HDB and you are not sure whether to sell or hold, let’s have a chat.
I have guided many homeowners through this exact situation, and I can help you weigh the options clearly so you make the best choice for your future.
Reach out to me anytime. Sometimes one conversation can give you the clarity you need.
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About The Author
Vivian joined the real estate industry in 2002.
Over the years, she has transacted numerous property deals, including HDB and private properties. She is well-versed in policies and regulations involving selling and purchasing residential properties. She has also handled complicated transactions like contra, divorce, administration/probate cases, and decoupling / part-share purchases.
Aside from her professional achievements, Vivian is a dedicated mother to 2 boys. Her role as a real estate mom has allowed her to strike a balance between her career and family, spending quality time with her children as they were growing up. Both boys are passionate footballers, and she takes great joy in supporting them at their school and club games.
Vivian is an active real estate salesperson and team leader. Call her at 98577714 for your real estate matters or if you are looking to join the industry.