Resale Levy on Inherited HDB Flats

Ms Sylvia Lim asked the Minister for National Development whether the Government will abolish or review the resale levy payable by persons who inherit subsidised HDB flats upon the demise of the former lessees.

Mr Khaw Boon Wan: Flat owners who bought a subsidised flat directly from the HDB or had taken a CPF Housing Grant for a resale flat are referred to as second-timers, and have to pay a resale levy when they buy a second subsidised flat. This is to reduce the second housing subsidy, and maintain a fair allocation of subsidies between first- and second-timers. The same treatment applies to second-timers who take over ownership of a subsidised flat by way of transfer, including inheritance upon demise of the former lessee.

Second-timers who do not wish to pay the resale levy can consider options such as selling the flat in the open market or having other family members who are first-timers and eligible to take over the flat ownership. If the beneficiary needs the inherited flat for accommodation and has genuine difficulty paying the resale levy, HDB is prepared to assist based on the merits of the case.

HDB conducts regular reviews of its policies to ensure that they remain relevant to changing ground situations. The issue raised by the Member is among those which will be looked at in its reviews.