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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

Applicable to Executive Condo Land Sales Launched On or After 9 Dec 2013

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.

Previously, second-timer applicants who buy new launch EC benefited 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.

Resale Levy Amount Payable (1st subsidised flat sold on or after 3 Mar 06)
First Subsidised Flat Type Resale 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 $55,000 Not applicable
Resale Levy Amount Payable (1st subsidised flat sold before 3 Mar 06)
First Subsidised Flat Type Resale Levy Amount
(Households)
Resale Levy Amount
(Singles Grant Recipients)
2-room 10%* or 15% 5%* or 7.5%
3-room 20% 10%
4-room 22.50% 11.25%
5-room 25% 12.5%
Executive 25% 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 is payable. If, when you sold the first subsidised flat, you opted to defer the payment until you purchase or take over another HDB flat. Interest at a prevailing rate of 5% per annum is payable.

Payment for the Resale Levy

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

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

  • sale proceeds, or
  • cash

The financial institution cannot extend the mortgage financing for the payment of the resale levy.

Status When to Pay How & Where to Pay
Own an existing subsidised flat at the point of signing the EC Sale and Purchase Agreement Upon 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 you can top-up with 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 Agreement. Payment 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 1997 Before the EC buyers sign the EC Sale and Purchase Agreement. The developer will collect Cashier’s Order (in favour of “HDB”) from the EC buyers and forward it to HDB as payment for the premium.