Understanding the HDB Resale Levy: What Second-Time Flat Buyers in Singapore Need to Know
The HDB resale levy is a charge applied to those buying a second subsidized flat in Singapore. This levy ensures fair distribution of subsidies by reducing the subsidy benefits on second purchases. Whether you're upgrading from a smaller flat or buying a second property with a CPF housing grant, understanding the resale levy can help you plan your finances effectively.
Billy The Editorial Guy
11/5/20241 min read
What is the Resale Levy and When Does it Apply?
The resale levy applies to households who have already received a subsidy on their first flat purchase and are now buying a second subsidized flat, such as a Built-to-Order (BTO) flat, resale flat with CPF grant, or an Executive Condominium (EC). The levy ensures that housing subsidies are distributed equitably, benefiting both first-time and second-time buyers.
Key Scenarios for Resale Levy Payment
Fixed Resale Levy Amounts (For Sales After 3 March 2006)
For second-timer applicants who sold their first subsidized flat on or after 3 March 2006, a fixed levy amount applies based on the flat type.
Percentage-Based Resale Levy (For Sales Before 3 March 2006)
For flats sold before 3 March 2006, the resale levy is a percentage of the sale price or 90% of the market value, whichever is higher.
* Only applicable to 2-room flat sellers who buy a larger flat type.
Note: The resale levy is subject to minimum amounts, ensuring a fair contribution based on flat size.
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-timer applicants who sold their first subsidised flat on or after 3 March 2006.
Important Considerations for Resale Levy Payment
Payment Sources: The levy is typically paid using proceeds from the first flat sale, but any shortfall must be covered in cash.
Exemptions: The resale levy does not apply if you are buying a resale flat without a subsidy or a private property.
Conclusion: Planning for the Resale Levy
The HDB resale levy is a crucial element for second-time buyers to consider when planning a purchase. Knowing the levy amount and payment process can help you make informed financial decisions and plan for future housing needs. For more insights and guidance on resale levies, property investments, and HDB grants, visit HomeAsset.sg—your expert resource on Singapore’s property landscape.
