The resale levy is meant to reduce the housing subsidy on the flat buyers’ second subsidised flat. It also ensures a fairer allocation of housing subsidies among flat buyers.
If you have bought a subsidised housing, you will need to pay a resale levy when you buy a second subsidised flat. A subsidised housing is:
– A flat bought from HDB
– A resale flat bought with CPF housing grant
– A Design Build and Sell Scheme (DBSS) flat bought from a property developer
– An Executive Condominium (EC) unit bought from a property developer
– Other forms of housing subsidy (e.g. enjoyed benefits under the Selective En bloc Redevelopment Scheme (SERS), privatisation of HUDC estate etc.)
If you do not intend to buy a second subsidised flat from HDB, i.e., you are buying a resale flat or private residential property, you need not pay the resale levy.
Half-resale levy for Singles Grant recipients
If you are a Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat (EC).
Resale Levy Amount For First Subsidised Flat Sold On Or After 3 March 2006
If you have sold your first subsidised flat from 3 March 2006 onwards, you will pay a fixed amount resale levy as follows:
Resale Levy Amount For First Subsidised Flat Sold Before 3 March 2006
If the first subsidised flat was sold before 3 March 2006, a percentage graded resale levy will apply (see table for more details).
If you have opted to defer the payment of the resale levy until you buy another flat from HDB, an interest at a prevailing rate of 5% per annum is charged.
If you and your spouse are aged 55 and above, have sold your first subsidised flat before 3 March 2006 and right-sizing to a new 3-room or smaller flat, you will pay only the percentage graded resale levy, with the interest waived. The resale levy payable is also subject to a minimum amount of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat sold. These are the same resale levy amounts payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the EC unit. Payment can only be made by way of your flat sale proceeds and/or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
If you have any questions about the amount of resale levy payable, you may contact us via the form below.
For more details, feel free to call or contact us for more details by filling the Form below.