Singapore property knowledge database

Find any question regarding your property transaction

Sell HDB flat in resale market

What is the eligibility to sell a HDB Flat in the Resale Market?
From 1 January 2018, resale flat sellers must register their intent to sell via HDB Resale first.

Sellers must have met the Minimum Occupation Period (MOP) before granting the OTP to Buyers.

The MOP is calculated from the date you collect the keys to the flat. It excludes any period that the flat is not occupied by the flat owners, such as when the whole flat is rented out or when there is any infringement of the flat lease.

Purchase ModeMOP
Flat bounght from the HDB5 years
DBSS flat bought from a developer5 years
Flat bought under the Selective En bloc Redevelopment Scheme (SERS)5 years; or
* 7 years from the date of selection of the replacement flat, whichever is earlier.
Flat bought under the SERS with portable SERS rehousing benefits5 years
Flats bought under the Fresh Start Housing Scheme20 years
Resale Flat bought from the open market with the CPF Housing Grant5 years


Resale Flat bought from the open market without the CPF Housing Grant
1-room flatNo MOP
2-room or bigger flat with date of flat application:on or after 30 Aug 20105 years
between 5 Mar - 29 Aug 20103 years
before 5 Mar 20102½ years if you took an HDB loan; or
* 1 year if you did not take an HDB loan

Source: HDB

To ascertain if you have met the MOP, Sellers may submit an e-Request online via HDB e-Service: Computation of Occupation Period for Purpose of Resale.
What is the Ethnic Integration Policy (EIP) & Singapore Permanent Resident (SPR) Quota?
Sellers/Buyers must meet the EIP and SPR Quota requirement on the date of resale application.

The EIP & SPR Limits are updated on a monthly basis. You can check the limits via HDB e-Service: Enquiry on Buyers’ Eligibility under the EIP and SPR Quota.
What should I consider before selling a HDB Flat in the Resale Market?
Before selling the flat, you must consider their next housing plans and any interim housing (if necessary).

If you are planning to buy another HDB flat, they have to check the following:

  • Your Eligibility to Buy
  • Your Eligibility for Housing Loan from HDB / Banks
  • Whether the remaining lease of the flat you intend to buy (especially those that have less than 60 years of remaining lease) would affect your use of CPF and the taking up of a housing loan
Do note that Sellers are not eligible for any HDB rental flat for thirty (30) months after the sale of their existing flat. After 30 months, they must comply with all prevailing eligibility conditions before applying to HDB for a rental flat.
What are the financial considerations for selling a HDB Flat in the Resale Market?
OUTSTANDING HOUSING LOAN
Sellers should check with the HDB / Bank on the outstanding housing loan that has to be discharged. If you have obtained an HDB loan, you can check the outstanding loan via the My HDBPage (select My Flat”; then “Financial Info” under “Purchased Flat”).

CPF (PLUS ACCRUED INTEREST) TO BE REFUNDED
Sellers are to check with the CPF Board on the amount of CPF (plus accrued interest) to be refunded by logging on to My CPF Online Services. If the sales proceeds are insufficient, the cash deposit received from the Buyers will have to be used to reduce any shortfall in the required amount of CPF refund.

HDB’S SALES PROCEEDS CALCULATOR
Sellers should use the HDB Sales Proceeds Calculator to work out the estimated sales proceeds for the sale of the flat. For an estimation of the resale price, Sellers may refer to the Resale Flat Prices provided on HDB’s website. HDB updates these on a daily basis.
What is the HDB PRESCRIBED OPTION TO PURCHASE?
The contract to be used in HDB resale transactions is the HDB Prescribed Option to Purchase (OTP).

Before granting the OTP, Sellers should read and understand the Important Notes and provisions enclosed with the OTP.

Any deletion, insertion or alteration to any provision in the prescribed OTP will render it null and void.

Under the new system, sellers can only grant the OTP after the 7 day cooling off period before granting an OTP to buyers.

Buyers are given twenty-one (21) days to exercise the OTP.

Buyers who are taking a housing loan or using CPF for the flat purchase will be required to submit a Request for Value from HDB.
What is the resale levy for selling a HDB Flat in the Resale Market?
If applicable, Sellers of subsidised flats will have to pay a resale levy based on the sale of their current flat before they buy or take over the ownership of another subsidised flat.

Those who have previously bought a flat from the HDB or taken a CPF Housing Grant will have to pay a resale levy when they next buy a flat from the HDB.

First Subsidised Flat TypeAmount of Resale Levy Payable under the Revised Policy (From 3 Mar 2006*)
2-room$15,000
3-room$30,000
4-room$40,000
5-room$45,000
Executive flat$50,000
* only applicable for those who submit their resale application and book a 2nd subsidised flat on/after 3 March 2006.

Source: HDB
What is the upgrading cost for selling a HDB Flat in the Resale Market?
If applicable, Sellers have to settle any outstanding upgrading cost/levy before the completion of resale.

The party liable to pay for the upgrading cost/levy is the flat owner on the date the bill is issued.

For a flat undergoing a resale transaction, the bill will be issued to the Buyers (the new owners) if the bill is rendered after the resale completion. You can check on the upgrading programme details and billing via HDB e-Service: Enquire Status of HDB’s Upgrading/Estate Renewal Programmes.
What is the information for declaration regarding sale of a HDB Flat in the Resale Market?
Sellers are legally required to give true information (e.g. resale price, income) to HDB.

Sellers must not enter into any supplementary agreement or cashback arrangement, etc.

In addition to other remedies, the Housing & Development Act (Chapter 129) provides that any person who makes a false statement is liable to a fine not exceeding $5,000/- or to imprisonment for a term not exceeding 6 months or both.

Last updated: 30 Apr 2018

Confused? Get a Property Agent to Help!