Allow Resale Levy to be Rolled into Purchase Price of Flats for Buyers Financially Affected by COVID-19 Pandemic

Miss Cheryl Chan Wei Ling asked the Minister for National Development whether HDB will allow the flat’s resale levy to be rolled into the purchase price of flats, for buyers who have been financially affected by the COVID-19 pandemic and are now unable to afford the upfront cash payment.

Singaporeans enjoy a significant housing subsidy when they buy a new flat from HDB, or a resale flat in the open market with CPF Housing Grants. To ensure a fair allocation of our limited housing subsidies, those who buy a second subsidised flat from HDB will receive a smaller subsidy than first-timer buyers, by paying a resale levy in cash. However, if they buy a resale flat from the open market, they do not have to pay a resale levy.

Second-timer buyers can use the proceeds from the sale of their first subsidised flat to pay the resale levy. To help second-timer buyers who are 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, so that the resale levy need not be paid upfront in cash. Those in extenuating circumstances who require assistance with their resale levy, such as households that are facing financial difficulties, can approach HDB and we will see how best to help them.