Resale Levy Policy Helps Prioritise the Allocation of Subsidies

SINGAPORE: From 2010 to 2015, about 7,900 second-timer households had paid the required resale levy amount when buying another subsidised flat from the Housing and Development Board (HDB), said Minister for National Development Lawrence Wong on Friday.

Flat owners who have sold their first flat, bought with a CPF housing grant, have to pay a resale levy when they buy another flat – a policy that aims to ensure “a fair distribution of subsidies between first- and second-timers”, said Mr Wong in response to Non-constituency Member of Parliament Leon Perera.  Executive condo applicants are also required to pay resale levy for the some of the newly launched ECs. Upcoming executive condo include The Visionaire EC , Wandervale EC and Parc Life EC while existing ones include The Terrace EC, Brownstone EC, Waterwoods EC, Signature at Yishun, Skypark Residences, The Criterion EC, Bellewaters EC, Bellewoods EC.

The resale levy policy also helps prioritise the allocation of subsidies “to groups that need them most”, such as first-timer citizen families seeking to buy a subsidised new flat, said Mr Wong.

He added that in the same period, HDB had received about 3,500 requests to waive the entire resale levy, while about 4,100 requests were for the partial waiver.

According to the National Development Minister, HDB assesses the appeals based on the merits of each case and advises the buyers accordingly, taking into account their family situations and circumstances.

“HDB does not allow for full waiver of the levy,” said Mr Wong.

“For those applying for partial waiver, HDB has acceded to about one-third of the appeals. These are usually second-timer households who sold their flats some time ago, and have accrued high interest amounts and face significant financial hardship.”

In some cases where buyers lack the cash to pay the resale levy, Mr Wong said HDB would help by incorporating the resale levy into the purchase price of the second subsidised flat the appellant is buying, so that the appellant can subsequently pay the levy by instalments.

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