Resale Levy & Premium

Resale Levy/Premium

How do I know that I need to pay resale levy/premium?

As long you have bought or sold a subsidised housing unit then you will need to pay a resale levy/premium when you buy your next subsidised flat. ​

A subsidised housing is:

• A flat bought direct from HDB
• A resale flat bought with CPF Housing Grant
• A Design Build and Sell Scheme (DBSS) flat bought from a property developer
• An Executive Condominium (EC) unit bought from a property developer
• Other forms of housing subsidy (e.g. enjoyed benefits under the Selective En bloc Redevelopment Scheme (SERS), privatisation of HUDC estate etc.)

When to pay resale levy/premium?

Generally, there could only be two scenarios.

​Flat Sale Timeline	Payment
You have disposed your first subsidised flat before applying ​for second subsidised flat	​Pay cash before key collection
Currently owning your first subsidised flat and have selected your second subsidised flat	Deducted from your sale proceeds when you sell your first subsidised flat

How much to pay resale levy/premium?

Well. it really depends on when you sold your first subsidised flat.
​This is based on what I remember.

​When You Sold Your First Subsidised Flat	How Much You Need To Pay
Before 1 Oct 1994	You need to pay 10% premium add on to your second subsidised flat
1 Oct 1994	You need to pay 20% premium add on to your second subsidised flat
18 May 1997 - 02 Mar 2006	​Based on resale price of the sold flat or 90% of its market valuation, whichever was higher. 2 room flat: 10% or 15% 3 room flat: 20% 4 room flat: 22.50% 5 room flat & bigger flat type: 25% ​ If you have opted to defer the payment of the resale levy until you buy another flat from HDB, an interest at a prevailing rate of 5% per annum is charged.
03 Mar 2006 ​onwards	You will pay a fixed amount resale levy as follows: ​ 2 room flat: $15,000 3 room flat: $30,000 4 room flat: $40,000 5 room flat: $45,000 Executive flat: $50,000 ​EC: $55,000

Those EC projects that is Westwood Residence onwards or land sales which are launched on or after 09 Dec 2013:
​2nd timer who is buying an EC directly from developer needs to pay a resale levy or premium. 
There is only one tier of premium for the purchase of  an EC which is 20%.

Can resale levy be waived or avoid resale levy?

HDB has waived the accrued interest on the resale levy payable by elderly second-timers who wish to right-size to a 3 room or smaller flat type from HDB. This only applicable if the elderly have sold their first subsidised flat before 03 March 2006 where they will pay only the percentage graded resale levy, with the interest waived.

The only way to avoid resale levy/premium is to buy a resale flat in open market.
​If you are 2nd timer and buying your next subsidised flat from HDB, confirm plus chop you need to pay levy. There is no way to avoid paying resale levy/premium.

Can I appeal HDB resale levy?

Yes, definitely you can appeal in by writing in.
​It is just whether your appeal is approve or reject.

To go about on your appeal or request for resale levy incorporation.
You will need to go to HDB Feedback Form. 
Select Subject "New Flat" > Category "Resale Levy" > Click Next.
Fill up all the relevant fields, explain why you want to appeal on your resale levy and attach all the supporting documents/pictures to substantiate your appeals.
Example of ​documents/pictures:

• payslips of everyone
• bank statement
• birth certificate of your children / student pass
• cash proceed statement
• final judgement (if any)
• court order (if any)

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Sources:

1. https://www.hdb.gov.sg/residential/buying-a-flat/conditions-after-buying 
2. https://www.mnd.gov.sg/newsroom/parliament-matters/q-as/view/written-answer-by-ministry-of-national-development-on-number-of-appeals-made-for-waiver-of-resale-levy-by-(i)-seniors-applying-for-2-room-flexi-flats-and-(ii)-single-parents-who-form-a-family-nucleus-with-their-children-and-number-of-successful-appeals