If you have previously bought a new flat from HDB, DBSS flat or Executive Condominium (EC) from Developer, or received a CPF Housing grant. Resale levy is meant to reduce the subsidy on the second subsidised flat so as to maintain a fair allocation of public housing subsidies between first and second timers citizen families.
Amount payable under the Revised Resale Levy Policy
The amount of resale levy is graded according to the flat type of the flat owners’ first subsidised flat is a 2-room flat will pay a resale levy of $15,000. Those whose first subsidised flat is a 3-room , 4 room, 5 room and Executive flat will pay a resale levy of $30,000, $40,000, $45,000 and $50,000 respectively when they purchase a second subsidised flat.
First Subsidised Housing Type Resale Levy Amount Households Singles Grant recipients 2-room flat $15,000 $7,500 3-room flat $30,000 $15,000 4-room flat $40,000 $20,000 5-room flat $45,000 $22,500 Executive flat $50,000 $25,000 Executive Condominium $55,000 Not applicable
* only applicable to those who submit their resale application and book a 2nd subsidised flat on/after 3 march 2006
Which Resale Levy Policy applies to you
The revised resale levy has been implemented from 03 Mar 2006. The revised resale levy policy will apply to 2nd-timer applicants who book their 2nd subsidised flat from HDB and submit their resale application to sell their first subsidised flat, both of which must be on or after 3 march 20016.
The following flat owners will come under the Previous Resale Levy Policy:
- Booked a second subsidised flat or an Executive Condominium unit from the developer before 3 Mar 2006. This is regardless of whether they have sold or submitted a resale application to sell the first subsidised flat, or
- Sold the first subsidised flat and opted for deferred resale levy, or
- Submitted a resale application to HDB before 3 March 2006 for the sale of their first subsidised flat
Amount Payable under the Previous Resale Levy Policy
Below are the charges under the Previos Resale Levy Policy, i.e. based on resale price or 90% of market valuation, whichever is higher:
First Subsidised Flat Type Resale Levy Amount
Based on resale price of the sold flat, or 90% of its market valuation, whichever was higher
Households Singles Grant recipients 2-room 10%* or 15% 5%* or 7.50% 3-room 20% 10% 4-room 22.50% 11.25% 5-room and Executive 25% 12.50%
*Only applicable to 2-room flat sellers that upgrade to a larger flat type direct from HDB
+ These resale levy rates apply only to sellers of flats previously bought with singles grant and who submit their resale application on or after 15 sep 2004
Resale Levy Payable by Single Grant recipients
Regardless of applicability of Revised or Previous Resale Levy Policy, single citizens, who have purchased resale flats with the lower CPF Housing Grant for singles, need to pay only half the levy amount when they subsequently form a family and buy of take over the ownership of a second subsidised flat.
Paying the resale levyThe resale levy payable is determined at the point you book your second subsidised flat. It is applicable regardless of ownership type (joint-tenancy or tenancy-in-common) and/or the shared interest in the flat.
When and how payment is made
Flat Sale Timeline Resale Levy Payment First subsidised flat was disposed of after taking possession of the second subsidised flat
- Resale levy deducted from the sale proceeds upon the sale of the first subsidised flat
- Any shortfall to be paid in cash
First subsidised flat was disposed of before taking possession of the second subsidised flat
- Resale levy paid in cash upon taking possession of the second subsidised flat
Wondering if your first HDB is a Subsidised Flat?
If the answer is yes to any of the conditions below it is considered that you have took a housing subsidy and will be applicable to pay Resale Levy stated above according to the sized of the subsidised flat
- Bought, taken over over ownership (by the way of gift or otherwise) acquired an interest in, sold or transferred (by way of gift or otherwise) a Studio apartment or flat direct from HDB, a HDB Resale Flat Bought under the CPF housing grant scheme, DBSS flat or EC unit.
- Taken other forms of housing subsidy (such as taken benefits under the Selective En Bloc Redevelopment Scheme (SERS), Privatisation of HUDC estate etc.)
- Unlocked part of the housing equity under the Lease Buyback scheme (LBS) or transferred a flat under the LBS
- Surrendered a Studio Apartment or a flat previously bought from HDB, an HDB Resale flat bought under the CPF Housing Grant scheme or a DBSS flat.
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