Resale Levy

Scenarios whereby a resale levy is payable or not payable:

Type of flat seller owns previously/Existing flat Type of flat seller plan to buy after the sale of existing flat Resale Levy – Payable?
New flat bought directly from HDB Either of the following:

  • New flat bought directly from HDB
  • Executive condominium (EC) from a developer where the land sale was launched on or after 9 Dec 2013, including those where tenders were not closed, i,e, Westwood Avenue, Canberra Drive and Anchorvale Crescent
Yes
New flat bought directly from HDB Either of the following:

  • Resale flat* from the open market
  • Studio Apartment
  • DBSS flat from a developer
  • EC unit from a developer of EC projects that were launched before 9 Dec 2013, Eg. Lake Life EC
  • Private property
No
Resale flat bought with CPF housing grant Either of the following:

  • New flat bought directly from HDB
  • Executive condominium (EC) from a developer where the land sale was launched on or after 9 Dec 2013, including those where tenders were not closed, i,e, Westwood Avenue, Canberra Drive and Anchorvale Crescent
Yes
Resale flat bought with CPF housing grant Either of the following:

  • Resale Flat*from the open market
  • Studio Apartment
  • DBSS flat from a developer
  • EC unit from a developer of EC projects that were launched before 9 Dec 2013
  • Private property
No

* Unlike new flats which are applicable to first and second timers, the CPF housing grant is only applicable to first-timers. If your clients have previously bought a resale flat with the grant, they can no longer buy another resale flat with CPF housing grant.

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. Under the revised policy, flat owners 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 Amount of Resale Levy Payable under the Revised Policy (From 3 Mar 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.

You can quickly check the resale levy here 

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 2006.

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 Previous Resale Levy Policy, i.e. based on resale price or 90% of market valuation, whichever is higher:
Flat Type Resale Levy payable by family grant recipient +Resale Levy payable by singles/half grant recipient
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 a lower rate, i.e. 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

You can quickly check the resale levy here 

Resale Levy Payable by Single Grant recipients

Regardless of the 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 or take over the ownership of a second subsidised flat.

Making Payment for the Resale Levy

The resale levy payable is determined at the point of booking of the second subsidised flat. The payment of resale levy is regardless of the type of ownership (i.e. joint-tenancy or tenancy-in-common) and the share of interest in the flat. If you are buying your second subsidised flat, you can:
  • Pay the resale levy immediately at the point of resale, i.e. when selling your subsidised flat or
  • Defer the payment until you buy another flat from HDB. If you come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged.

You can pay the Resale Levy with either/combination of the following:

  • with your sale proceeds or
  • cash

HDB’s mortgage financing is not extended for the payment of the resale levy

Situation Procedure
If you

  • Book a second subsidised flat on or after 3 Mar 2006, and
  • Sell your first subsidised flat after taking possession of the second 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 second subsidised flat on or after 3 Mar 2006, and
  • Sell your first subsidised flat before taking possession of the second subsidised flat
  • You can choose to pay resale levy at the point of:
    • Selling your existing flat in the open market, or
    • Taking possession of the second subsidised flat
If you pay at point of your resale transaction, i.e. when selling your subsidised flat
  • The resale levy will be deducted from the sale proceeds
  • Any shortfall will have to be topped-up in cash
  • Otherwise, the resale levy must be paid in cash before you can take possession of your second subsidised flat
If you

  • Submit an application to sell your first subsidised flat on or after 3 Mar 2006, and
  • Subsequently book a second subsidised flat on or after 3 Mar 2006
  • The resale levy has to be paid in cash before you can take possession of your second subsidised flat
Last updated on 30 Apr 2015

 

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