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Planning to sell your subsidised flat soon?
In this article, we’ll fill you in on everything you need to know about HDB Resale Levy — from common market price points to available grants for buyers.
The HDB resale levy is a cost or a charge that flat buyers need to pay when a subsidised unit gets sold in order to buy another one.
According to Singapore’s Housing & Development Board or HDB, the resale levy is made to maintain “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.”
But what does this mean for buyers, exactly? The levy is imposed to help sure that all public subsidies are allocated fairly between first-time buyers and other homeowners who have already purchased subsidised flats.
So how can you find out if you’re required to pay for one? Continue reading below for more information!
Buyers who have purchased a subsidised flat from the housing and development board (HDB) or an executive condominium from a developer in the past are required to pay for a resale levy. Keep in mind that this always applies when buying another subsidised flat.
To be more specific, you will need to pay a resale levy if you’re selling your subsidised flat to buy another one from HDB or an EC from a developer (where the land sale was launched on or after December 9, 2013).
However, buying any of the following properties should exempt you from paying the levy: a Design, Build and Sell Scheme (DBSS) flat from a developer, an EC from a developer (the land sale should’ve been launched before December 9, 2013), an HDB resale flat, or a private residential property.
If the flat was sold before March 3, 2006, here are the rates that you should keep in mind:
If the first subsidised flat was sold on or after March 3, 2006, here are the respective rates:
If you’re wondering how to pay for a resale levy, always remember that the final payable amount will only be determined once you book your second subsidised flat. Paying for it is required by cash, or directly from the sale proceeds of your first flat.
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