Pay Resale Levy (if applicable)
Resale Levy
Singapore citizen households enjoy a housing subsidy when they buy a new flat from HDB or a resale flat in the open market applied with CPF Housing Grant. Each eligible family can purchase up to a maximum of 2 subsidised flats, in other words, enjoy 2 housing subsidies.
The resale levy is meant to reduce the subsidy on the 2nd subsidised flat so as to maintain a fair allocation of public housing subsidies between 1st and 2nd-timer citizen families. This is also to give priority to 1st-timers who have more urgent housing needs.
Lessees who do not buy a 2nd subsidised flat from HDB need not pay the resale levy.
Revision of Resale Levy Policy
As announced on 3 March 2006, the resale levy is now set at a fixed amount of between $15,000 and $50,000, based on the flat type of the 1st subsidised flat. With a fixed amount, it will give greater certainty to existing flat lessees who are deciding whether or not to buy a 2nd subsidised flat from HDB.
Click here for the Press Release on Policy Announcements during the MND Committee of Supply Debate.
FAQs
When is resale levy payable by lessees?
The resale levy is payable when the 2nd-timer buys or takes over the ownership of another subsidised flat. Below gives a guide on when resale levy is payable.
Yes |
No |
You are selling your 1st subsidised flat and buying a 2nd subsidised flat from HDB
|
You are selling your 1st subsidised flat and buying a resale flat from the open market or a private property |
You are a 2nd-timer taking over ownership of a subsidised flat
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Important Notes:
(a) 2nd-timer refers to a citizen family who has previously enjoyed the 1st housing subsidy when they bought a new flat from HDB or resale flat with housing grant
(b) A flat is considered a subsidised flat if you have bought it direct from HDB; or from the open market with a CPF Housing Grant.
(c) Resale levy is also applicable for the purchase of an Executive Condominium unit from the developer.
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What is the amount of resale levy under the revised policy wef 3 March 2006?
The amount of resale levy is graded according to the flat type of lessees' first subsidised flat. Under the revised policy, lessees whose 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 Flat Type |
New Resale Levy (from 3 March 2006)* |
2-room |
$15,000 |
3-room |
$30,000 |
4-room |
$40,000 |
5-room |
$45,000 |
Executive Flat |
$50,000 |
* - only applicable for those who submit their resale application and book a 2nd subsidised flat on/after 3 March 2006.
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What is the revised resale levy payable by Single Grant recipients?
For single citizens who purchased resale flats with the lower CPF Housing Grant for Singles, they need only pay half the levy amount when they subsequently form a family and buy or take over the ownership of a second subsidised flat.
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How do I pay resale levy?
If you book a 2nd subsidised flat on or after 3 Mar 2006, and sell your first subsidised flat after taking possession of the 2nd subsidised flat
The resale levy payable is determined at the point of booking of the 2nd subsidised flat. The resale levy will be deducted from the sale proceeds when you sell your first subsidised flat in the open market. Any shortfall will have to be topped-up in cash.
If you book a 2nd subsidised flat on or after 3 Mar 2006, and later sell your first subsidised flat before taking possession of the 2nd subsidised flat
The resale levy payable is determined at the point of booking of the 2nd subsidised flat. You can choose to pay resale levy at the point of selling your existing flat in the open market, or at the point of taking possession of the 2nd subsidised flat.
If you pay at point of resale, the resale levy will be deducted from the sale proceeds; any shortfall will have to be topped-up in cash. Otherwise, the resale levy has to be paid in cash before you can take possession of your 2nd subsidised flat.
If you submit an application to sell your 1st subsidised flat on or after 3 Mar 2006, and subsequently book a 2nd subsidised flat on or after 3 Mar 2006
The resale levy payable is determined at the point of booking of the 2nd subsidised flat. The resale levy has to be paid in cash before you can take possession of your 2nd subsidised flat.
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What is the cut-off date for application of revised resale levy policy?
The revised resale levy policy will apply to 2nd-timer applicants who book their 2nd subsidised flat from HDB and submit their application to sell their first subsidised flat, both of which must be on or after 3 March 2006.
The cut-off date to apply the revised resale levy policy for the various methods of submitting resale applications to HDB is as follows:
Method of Submitting Application |
Cut-off date Based On |
HDB-ResaleNet System |
Date of receipt of application via ResaleNet |
e-Resale |
Date of receipt of application via e-Resale |
Drop Box at Toa Payoh HDB Hub |
Date of receipt of application in the Drop Box |
By Post to HDB |
Date of Postmark by Singapore Post |
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Who will still be subject to the previous resale levy policy and what is the resale levy payable?
The revised resale levy will not be applicable to the following flat lessees or ex-lessees:
(a) Those who have booked a 2nd subsidised flat or an Executive Condominium unit from the developer before 3 March 2006,
regardless of whether they have sold or submitted a resale application to sell the first subsidised flat
(b) Those who have 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.
The above flat lessees or ex-lessees will come under the previous policy and have to pay resale levy based on the following:
Flat Type |
Resale Levy
(based on resale price or 90% of market valuation, whichever is higher) |
+Resale Levy payable by each singles grant recipient
(based on resale price or 90% of market valuation, whichever is higher)
|
2-room |
*10% / 15% |
*5% / 7.5% |
3-room |
20% |
10% |
4-room |
22.5% |
11.25% |
5-room & Executive |
25% |
12.5% |
* 2-room flat sellers pay the lower rate (ie 10% or 5%) only if they buy a bigger flat direct from HDB.
+ These resale levy rates apply only to sellers of flats previously bought with singles grant and who submit their resale applications on or after 15 Sep 2004.
Notes:
(a) You can opt to pay the resale levy immediately at the point of resale or defer the payment until you buy another flat from HDB. If you opt for the latter, an interest at the prevailing rate of 5% per annum will be charged. HDB's mortgage financing is not extended for the payment of the resale levy.
(b) HDB flat owners who do not intend to buy a second subsidised flat from HDB, for example, those who are buying a resale flat or a private residential property, need not pay the resale levy.
(c) A divorced couple undergoing the resale of part-share of their matrimonial flat (bought direct from HDB or from the open market with CPF housing grant) will each be required to pay an equal share of the resale levy. The payment of resale levy is regardless of the type of ownership (joint-tenancy or tenancy-in-common) and the share of their interest in the flat.
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