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Resale Levy for Second-Timer EC Applicants

Second-timer Applicants Who Buy EC Unit Directly From Property Developers Have To Pay A Resale Levy

Resale Levy for Second-Timer EC Applicants

Applied to Executive Condo land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed.

Second-timer applicants who buy Executive Condo unit directly from property developers have to pay a resale levy, similar to second-timer applicants who buy BTO flats.

Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity.

Summary of Resale Levy Amount Payable

First Subsidised Flat TypeResale Levy Amount (Households)Resale Levy Amount (Singles Grant recipients)
2-room$15,000$7,500
3-room$30,000$15,000
4-room$40,000$20,000
5-room$45,000$22,500
Executive flat$50,000$25,000
Executive Condominium$55,000Not applicable
First Subsidised Flat TypeResale Levy Amount (Households)Resale Levy Amount (Singles Grant recipients)
2-room10%* or 15%5%* or 7.5%
3-room20%10%
4-room22.50%11.25%
5-room25%12.5%
Executive25%12.5%

*Only applicable to 2-room flat sellers that upgrade to a larger flat type.

The principal amount of the resale levy is computed as a percentage of the transacted resale price or 90% of the market value of the flat, whichever is higher. Interest accrues on the principal amount payable.

If the graded resale levy was not paid when you sold the first subsidised flat, i.e. you opted to defer the payment until you purchase/ take over another HDB flat, interest at a prevailing rate of 5% per annum is charged.

Payment for the Resale Levy

The resale levy payable is determined at the point of booking of the second subsidised flat. The payment of resale levy is regardless of the type of ownership (i.e. joint-tenancy or tenancy-in-common) and the share of interest in the flat.

You can pay the Resale Levy with either and/ or combination of the following:

  • sale proceeds, or
  • cash

Mortgage financing is not extended for the payment of the resale levy.

StatusWhen to PayHow & Where to Pay
Own an existing subsidised flat at the point of signing the EC Sale and Purchase AgreementUpon the sale of the subsidised flat.

You are given up to six months from the date of issuance of the Temporary Occupation Permit for the EC development, to sell or transfer your existing HDB flats.

The resale levy will be deducted from the cash proceeds upon completion of the resale transaction.

Any shortfall will have to be made good in cash.

Sold subsidised flat between 19 May 1997 to 2 Mar 2006;

Sold subsidised flat on or after 3 Mar 2006;

Previously sold an EC unit which was bought from a Developer and has waited out 30 months as at the point of current EC application

Before the EC buyers sign the EC Sale and Purchase AgreementPayment to the HDB branch that managed the HDB flat that was sold, by Cash or Cashier’s Order only. (No personal cheque or CPF money to be used for payment of resale levy)
Sold subsidised flat before 19 May 1997Before the EC buyers sign the EC Sale and Purchase AgreementThe developer will collect Cashier’s Order (in favour of “HDB”) from the EC buyers and forward it to HDB as payment for premium.
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