HDB Resale Flat Levy

Dr Intan Azura Mokhtar asked the Minister for National Development whether the Ministry would consider waiving or discounting the resale levy for low-income families who are buying their second subsidised HDB flat.

The Minister for National Development (Mr Khaw Boon Wan): Sir, the purpose of the resale levy is to make a distinction on the amount of housing subsidy received by a first-timer and a second-timer HDB buyer. Our priority is to help Singaporean families get their first HDB flats. Those who have never benefited from any housing subsidy should get more subsidy than those who have already benefited once before. The resale levy amount is in turn based on the flat type of the first subsidised flat – the smaller the flat-type, the lower the levy.

Mr Cedric Foo Chee Keng (Pioneer): Mr Speaker, Sir, I have a supplementary question for the Minister. Most families find it difficult – although they recognise that the resale levy is necessary because there is a second subsidy – to finance the resale levy component. Would MND consider helping them finance that portion?

Mr Khaw Boon Wan: I am familiar with the concern that the Member has raised because some of my constituents face similar problems, too. I have always shared with my colleagues in HDB to try and exercise compassion where we can within the whole framework of fairness. So long as the fundamental philosophy behind the levy is not in conflict, we will try to assist where we can. Inevitably, cases differ from each to the other, so we really need to look at each individual case on its own merit.

Dr Intan Azura Mokhtar (Ang Mo Kio): Sir, I thank the Minister for his answer. There are some families who face difficulties in paying their resale levy. From what I understand, the resale levy has to be paid in cash. Is it possible for them, especially those who are lower income, to pay this in monthly instalments, or to pay through the CPF?

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Mr Khaw Boon Wan: Sir, in some specific cases of merit, we have tried to incorporate the resale levy into the price for the second subsidised flat. This is so that the buyers can make use of both their CPF monies and the housing loan to pay.

Mr Zainudin Nordin (Bishan-Toa Payoh): A supplementary question, Sir. I wonder whether Minister has considered having a differentiation pricing for those who are first-time buyers and those who are second-time buyers, so that upfront, buyers would already know what it costs to buy a second time. Otherwise, some buyers will be hit by the resale levy without even knowing about it.

Mr Khaw Boon Wan: Sir, levies are made known to flat sellers upfront. They have to sign a form indicating that they understand what selling a flat entails. There is no question of them not being aware of what the levy ought to be. On the proposed alternative of different pricing so that second-timers pay a presumably higher price than a first-timer: that is certainly one alternative. But we would have to see what the first subsidised flat was for a second-timer buyer. If we use the proposal made by the Member, we will end up having to look at what was the buyer's first subsidised flat – was it 3-room, 4-room or 5-room? It can be rather complicated and confusing.