EC Resale Levy

Resale Levy in introduced in the measures on 9th of December 2013. Since then all EC land parcels sold on or after 9th of Dec will be affected with resale levy imposed for 2nd timer applicants. So what is resale levy, who is affected and how are you affected? All will be explained below.


What is Resale Levy?

The resale levy is meant to reduce the subsidy on the second subsidised flat so as to maintain a fair allocation of public housing subsidies between first and second-timer citizen families.

Basically, it means that resale levy is payable by households which are buying their second subsided flat or executive condominium from HDB.


Who need to pay Resale Levy?

The scenarios whereby a resale levy is payable/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 Condo (EC) from a developer where the land sale was launched on or after 9th Dec 2013, etc. Westwood, The Brownstone and The Vales
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 9th Dec 2013
  • Private property
No
Resale flat bought with CPF housing grant Either of the following

  • New flat bought directly from HDB
  • Executive Condo (EC) from a developer where the land sale was launched on or after 9th Dec 2013, i.e, Westwood, The Brownstone and The Vales
Yes
Resale flat bought with CPF housing grant Either of the following

  • Resale flat* from the open market
  • Studio Apartment
  • DBSS flat from a debeloper
  • EC unit from a developer of EC project that were launched before 9th 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 you have previously bought a resale flat with the grant, you can no longer buy another resale flat with CPF housing grant.


How much do you need to pay?

From 3rd March 2006 till current

The amount of resale levy is graded according to the flat type of your first subsidised flat. If your first subsidised flat is a 2-room flat will pay a resale levy of $15k. Those whose first subsidised flat is a 3-room, 4-room, 5-room and Executive flat will pay a resale levy of $30k, $40K, $45k and $50k respectively when they purchase a second subsidised flat.

For those who have yet to sell their subsidised flat or sold on/after 3rd Mar 06

First Subsidised Flat Type Amount of Resale Levy Payable under current Policy
2-room $15,000
3-room $30,000
4-room $40,000
5-room $45,000
Executive Flat $50,000

Before 3rd Mar 06

If you have sold your first subsidised flat before 3rd March 2006, your resale levy will fall under this category. Example as follow:

  • Booked a second subsidised flat or an Executive Condominium unit from the developer before 3rd March 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 3rd March 2006 for the sale of their first subsidised flat.

Amount payable under the previous Resale levy policy
Below are the charges 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 seller of flats previously bought with singles grant and who submit their resale applications on or after 15 Sept 2004


When do you need to make 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 is the flat.

If you are buying your second subsidised flat or EC, you can either:

  • Pay the resale levy immediately at the point of resale, i.e. when selling their subsidised flat or
  • Defer the payment until they buy another flat from HDB. If they come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged.

The resale levy can be paid with either the sale proceeds and/or cash. HDB’s mortgage financing is not entended for the payment of resale levy

Situation Procedure
If you have

  • Book a second subsidised flat on or after 3rd March 2006, and
  • Sell their first subsidised flat after taking possession of the second subsidised flat
  • The resale levy will be deducted from the resale proceeds when they sell their first subsidised flat in the open market
  • Any shortfall will be topped-up in cash
If your have

  • Book a second subsidised flat on or after 3rd March 2006, and
  • Sell your first subsidised flat before taking possession of the second subsidised flat
You can choose to pay resale evy at the point:

  • Selling your existing flat in the open market, or
  • Taking possession of the second subsidised flat

The levy will be deducted from the sale proceeds if they choose to pay at the point of selling existing flat in the open market.

If you have

  • Submit an application to sell their first subsidised flat on or after 3rd March 2006, and
  • Subsequently book a second subsidised flat on or after 3rd March 2006
The resale levy has to be paid in cash before they can take possession of your second subsidised flat

Note: For payment of resale levy at the point of the resale transaction, the amount will be deducted from the sale proceeds. Any shortfall will have to be topped-up in cash. Otherwise, the resale levy must be fully paid in cash before you can take possession of your second subsidised flat or EC.

Singapore EC