Waiver of Resale Levy for Senior Citizen Applicants Aged 55 and Above for 2-room Flexi Flats

Mr Gan Thiam Poh asked the Minister for National Development whether HDB can consider not to impose a resale levy on applicants of 2-room flexi flats who are senior citizens aged 55 years and above.

Mr Lawrence Wong: Singapore Citizen households enjoy a significant housing subsidy when they buy a new flat from HDB or a resale flat from the open market with a CPF housing grant. If they purchase another flat from HDB, they are no longer eligible for the full subsidy, which is meant for first-timers only. Hence a resale levy is imposed if they are not a first-timer.

Nonetheless, we have put in place various measures to help seniors who purchase a 2-room Flexi flat from HDB. Since 2015, we have waived the accrued interest for seniors liable for the percentage resale levy 2 . For those who purchase a short lease 2-room Flexi flat, we provide further help by capping their resale levy and adjusting it for the shorter lease. This means that the maximum resale levy that would be paid on a 2-room Flexi with a 45-year lease is $18,000, much lower than what the normal resale levy would be.

We will continue to review our policies to ensure that they maintain a fair allocation of public housing subsidies between first-time buyers and other buyers.

Note(s) to Question No(s) :

2 Flat owners who sold their first subsidised flat before 2006 were subject to a compound interest of 5% per annum if they chose to defer the payment of the levy until they collect keys to their second subsidised flat.