Waiving Resale Levy for Households Affected by SERS when They Buy Replacement Flat

Ms Tin Pei Ling asked the Minister for National Development given that the Selective En-Bloc Redevelopment Scheme (SERS) is an involuntary scheme, whether the Minister will consider waiving the resale levy for households affected by SERS when they select a replacement flat.

Under the Selective En-Bloc Redevelopment Scheme (SERS), households whose existing flat is a subsidised flat do not need to pay a resale levy when they buy a new replacement flat from the Housing and Development Board (HDB). This waiver of resale levy is a concession under SERS.

The resale levy is payable only for SERS households who had previously sold a subsidised flat elsewhere and are liable to pay a resale levy should they buy another subsidised flat from HDB. The resale levy is capped at $30,000, as a concession under SERS. SERS households need not take up the replacement flat from HDB. They can instead opt for an ex-gratia payment and buy a resale flat on the open market, without the need to pay any resale levy.