Sunday, 3 November 2019

What is Resale Levy?

Resale Levy

If you previously bought a new flat from HDB, Design, Build and Sell Scheme (DBSS) flat or Executive Condominium (EC) from a developer, or received a CPF Housing Grant, find out if you need to pay a resale levy when you purchase your next home.
The resale levy maintains a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or EC.

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.

Situations in which a resale levy is payable

When are you required to pay the resale levy.
You need to pay a resale levy in either of these cases:
  • You dispose of your subsidised flat and then buy a second subsidised flat from HDB
  • You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013
You need not pay a resale levy if you are buying any of these:
  • Design, Build and Sell Scheme (DBSS) flat from a developer
  • EC from a developer, where the land sale was launched before 9 December 2013
  • HDB resale flat
  • Private residential property



Resale levy amount: first subsidised flat sold on or after 3 March 2006

Resale levy amount for first subsidised flat sold on or after 3 March 2006

This fixed resale levy amount gives greater certainty for financial planning, be it for upgrading to a larger flat, or right-sizing to a smaller flat.
First Subsidised Housing Type
Resale Levy Amount
Households
Single 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


Resale levy amount: first subsidised flat sold before 3 March 2006

Resale levy amount for first subsidised flat sold before 3 March 2006
For cases where the first subsidised flat was sold before 3 March 2006, a percentage graded resale levy will apply (see table for more details).
If you had 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 have any questions about the amount of resale levy payable, you may contact us at 1800-866-3066, or email us athdbsales@mailbox.hdb.gov.sg.
First Subsidised Housing Type
Resale Levy Amount
Based on resale price of the sold flat, or 90% of its market valuation, whichever was higher
Households
Single 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 who upgrade to a larger flat type.


Waiver of Interest for Elderly

If you and your spouse are aged 55 and above, have sold your first subsidised flat before 3 March 2006 and right-size to a new 3-room or smaller flat from the November 2015 sales launch onwards, 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.


Paying the resale levy

When and how payment is made.
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 flat. 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.

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

Source: HDB