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Resale levy ensures a fair allocation of public housing subsidies, says HDB

We thank Mr Teo Kueh Liang for his feedback in the letter, “Relook resale levy for long-time HDB owners who want to sell their first flats” (May 3, 2022).

The author said that the resale levy is meant to maintain a fair allocation of limited housing subsidies between first-time and second-time applicants.

The author said that the resale levy is meant to maintain a fair allocation of limited housing subsidies between first-time and second-time applicants.

SIA TZE MING, DIRECTOR, POLICY AND PROPERTY, HOUSING AND DEVELOPMENT BOARD

We thank Mr Teo Kueh Liang for his feedback in the letter, “Relook resale levy for long-time HDB owners who want to sell their first flats” (May 3, 2022).
 
All flat buyers get a housing subsidy when they buy a flat from the Housing and Development Board (HDB). 

Flat owners who have benefited from housing subsidies are considered second-timers and are required to pay a resale levy when they buy a second subsidised flat from HDB or an EC (executive condominium) unit from a developer.
 
The levy is meant to maintain a fair allocation of limited housing subsidies between first-time and second-time applicants, thus allowing more Singaporeans, especially first-time applicants, to benefit from our public housing subsidies.
 
Second-time buyers can use the proceeds from the sale of their first subsidised flat to pay the resale levy. However, if they buy a resale flat from the open market, they do not have to pay a resale levy.
 
We recognise that some buyers may not be able to pay the resale levy upfront in cash. To help those in need, HDB has been exercising flexibility on a case-by-case basis, such as by incorporating the resale levy into the purchase price of the second subsidised flat.
 
Those in extenuating circumstances, such as households with financial difficulties, may approach HDB for help, and we will see how best to help them.
 
We also have measures to help second-timer seniors who are looking to buy a new HDB flat to right-size.
 
Those aged 55 and above may consider buying a short-lease two-room flexi flat from the HDB with a lease ranging from 15 to 45 years in five-year increments.

Those aged 65 and above may also consider buying a community care apartment with a lease ranging from 15 to 35 years in five-year increments.
 
These are affordable options as their selling prices are adjusted according to the choice of lease and the accompanying amenities. Similarly, the resale levy will be adjusted according to the length of lease chosen.
 
In addition, people aged 55 and above who sell their existing HDB flat and buy a three-room or smaller flat may apply for the Silver Housing Bonus of up to S$30,000 if they top up their Central Provident Fund retirement account and join CPF Life.
 
Have views on this issue or a news topic you care about? Send your letter to voices [at] mediacorp.com.sg with your full name, address and phone number.

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hdb resale levy property HDB flat

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