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The resale levy applies when you have already enjoyed a housing subsidy on your first flat and then buy a second subsidised flat from HDB, such as another BTO, an SBF unit, or a new Executive Condominium. It is HDB's way of recovering part of the subsidy so it is not received twice. Resale and private purchases do not trigger it.
The levy is a fixed amount tied to your first subsidised flat type rather than a percentage of your sale price, so larger first flats carry a higher levy than smaller ones. Select your first flat type in the tool to see the figure. It is payable to HDB at the second flat purchase, settled in cash or CPF.
No. The levy is only triggered by a second subsidised purchase from HDB. If you sell your subsidised flat and buy a resale HDB flat on the open market, or buy private property, no resale levy applies. This often makes the resale or private route worth comparing against a second BTO when you weigh total cost.
The levy is payable to HDB at the point of the second flat purchase and can be settled in cash or from CPF, depending on your situation. Because it is a non recoverable cost rather than an investment, it should be built into your upgrade maths upfront when comparing a second BTO path against a resale or private path.
It can. The levy is money you do not get back, so on a second subsidised purchase it adds directly to your true cost. Comparing a levy bearing BTO route against a levy free resale or private route sometimes flips the better answer. Winfred Quek can fold the levy into a full upgrade comparison so you see the net position.