Waiver of Resale Levies on Flats Acquired under Selective En-Bloc Redevelopment Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether resale levies for Selective En bloc Redevelopment Scheme (SERS) households have been waived case-by-case or will be exempted, as raised by Mr Louis Chua. Minister Desmond Lee explained that while levies ensure fair subsidy distribution, SERS owners of subsidised flats receive a waiver when buying replacement flats. For those who previously sold a subsidised flat elsewhere, the Minister noted that the resale levy is capped at $30,000 as a concession. He highlighted that affected owners can avoid the levy by selling their flat on the open market or accepting an ex-gratia payment alongside market compensation. These options allow households to purchase a resale flat of their choice without the requirement to pay any resale levy.
Transcript
65 Mr Chua Kheng Wee Louis asked the Minister for National Development with regard to households whose flats have been acquired under the Selective En bloc Redevelopment Scheme (SERS) and subjected to the resale levy (a) whether HDB has waived such resale levies on a case-by-case basis in the past; and (b) whether HDB will consider granting an exemption to current and future affected households.
Mr Desmond Lee: Flat owners are typically allowed to purchase subsidised flats only twice and are required to pay a resale levy before or upon the purchase of their second subsidised flat. This is to ensure a fairer distribution of public housing subsidies between first-time and second-time buyers of subsidised HDB flats.
Under SERS, households whose SERS flat is a subsidised flat do not need to pay a resale levy when they buy a new subsidised replacement flat from HDB. This waiver of resale levy is a concession under SERS.
However, the resale levy is payable for SERS households who had previously sold a subsidised flat elsewhere but had not bought a second subsidised flat and paid a resale levy. In such instances, the resale levy is capped at $30,000 as a concession under SERS.
In addition, SERS flat owners who are liable for but do not wish to pay the resale levy have other housing options, such as selling their SERS flat with the rehousing benefits on the open market or opting for an ex-gratia payment on top of the market compensation for their SERS flat. They can then buy a resale flat of their choice without the need to pay any levy.