Debated in Parliament on 6 Feb 2023.
Mr Pritam Singh asked the Minister for National Development (a) from 2010 to 2022, how much has the Ministry collected from the resale levy each year for HDB flats sold before 3 March 2006, divided into each subsidised housing type respectively; and (b) what is the forgone resale levy through waivers and reductions for each year and housing type respectively.
Singaporeans enjoy a significant housing subsidy when they buy a new flat from HDB, or a resale flat in the open market with a CPF Housing Grant. To ensure a fair allocation of our limited housing subsidies, those who buy a second subsidised flat from HDB receive a smaller subsidy than first-timer buyers, by paying a resale levy on or before collecting the keys to their second subsidised flat.
HDB does not track the collection of resale levy by whether the first subsidised flat was sold before 3 March 2006, or on and after that.
The breakdown of the range of resale levy collected from second-timers (STs) buying a new flat between FY2010 and FY2021, based on the flat type of their first subsidised flat, is in Table 1 below.
ST flat buyers can use the proceeds from the sale of their first subsidised flat to pay the resale levy, which is payable in cash. Those with 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. For example, on a case-by-case basis, HDB may allow the incorporating of the resale levy into the purchase price of the second subsidised flat so that the resale levy need not be paid upfront in cash. HDB does not track the resale levy forgone through a waiver or reduction.
STs may also consider buying a resale flat, for which they are not required to pay a resale levy. Eligible applicants may also apply for a Proximity Housing Grant of $20,000, if the resale flat they are buying is within four kilometres of their parents' home.
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