Written Answer by Ministry of National Development on waiver of resale levies on flats acquired under Selective En bloc Redevelopment Scheme (SERS) in the past and possible exemptions for current and future affected households

Aug 1, 2022

Mr Chua Kheng Wee Louis: To ask 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.

Answer:

1          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.

2.         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.

3.         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.

4.         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.