There are two types of HDB flats you can purchase. You can either purchase a new HDB flat direct from HDB itself or a resale HDB flat in the open market.
Here are some of the differences between a new and resale flat.
| New HDB Flat | HDB Resale Flat | |
|---|---|---|
| Price | A new flat is sold at a subsidised price. | The price is negotiated between you and the seller. |
| Location | Flats are mostly located in non-mature estates. | Flats in all locations may be put up for sale. |
| Mode of Purchase | Sales launches are held periodically, and applicants apply directly to HDB for a flat. Priority schemes are available to improve your chances of getting a flat. | Flats can be purchased from the open market any time. |
New HDB Flats
Types of flats
HDB offers a wide variety of 99-year leasehold flats to cater to different household sizes, needs and budgets.
HDB also has schemes like the Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums (EC)s, which are built by private developers and come with a 99-year lease. ECs also offer home buyers facilities such as swimming pools, tennis courts and security services just like private condominiums.
New flats from HDB
| HDB Flat Types | 2-Room Flexi | 3-Room | 4-Room | 5-Room | 3 Generation | Executive |
|---|---|---|---|---|---|---|
| Approximate floor area in square meters | 36 and 45 | 60 to 65 | 90 | 110 | 115 | 130 |
| Total number of bedrooms | 1 | 2 | 3 | 3 | 4 | 3 |
| Total number of bathrooms | 1 | 2 | 2 | 2 | 3 | 2 |
2-room Flexi flat
The 2-room Flexi Scheme combines the previous Studio Apartment and 2-room flat schemes.
Features:
- About 36 square meters (Type 1) and 45 square meters (Type 2)
- 1 bedroom
- 1 bathroom
- Kitchen
- Storeroom/ apartment shelter
3-room flat
3 room flats are ideal for families looking for a compact and cosy home.
Features:
- About 60 to 65 square meters
- 2 bedrooms. 1 common room and 1 master bedroom with an attached bathroom
- 2 bathrooms
- Kitchen
- Living/ dining area
- Service Yard
- Storeroom/ apartment shelter
4-room flat
4 room flats are ideal for families looking for a versatile and comfortable living space.
Features:
- About 90 square meters
- 3 bedrooms. 2 common room and 1 master bedroom with an attached bathroom
- 2 bathrooms
- Kitchen
- Living/ dining area
- Service Yard
- Storeroom/ apartment shelter
5-room flat
5 room flats are ideal for families looking for a larger living space.
Features:
- About 110 square meters
- 3 bedrooms. 2 common room and 1 master bedroom with an attached bathroom
- 2 bathrooms
- Kitchen
- Living/ dining area
- Service Yard
- Storeroom/ apartment shelter
3Gen flat
3 Gen flats are ideal for multi-generation families who want to live together.
Features:
- About 115 square meters
- 4 bedrooms. 2 common room and 2 master bedroome, each with an attached bathroom
- 3 bathrooms
- Kitchen
- Living/ dining area
- Service Yard
- Storeroom/ apartment shelter
Executive flat
Executive flats are ideal for families who want much more space. Executive flats feature an additional space for a study room.
Features:
- About 130 square meters
- 3 bedrooms. 2 common room and 1 master bedroom with an attached bathroom
- 2 bathrooms
- Kitchen
- Living area
- Dining area
- Service Yard
- Storeroom/ apartment shelter
Executive Condominiums (ECs)
ECs are comparable to private condominiums in terms of design and facilities. Built and sold by private developers, they are attractive options for higher income Singaporeans.
ECs can only be sold in the open market to after meeting their minimum occupation period of 5 years. Only after 10 years do they acquire full condominium status and can be sold to foreigners.
Please refer to my previous guide to buying an executive condominium here > www.daryllum.com/guide-to-buying-an-executive-condominium/.
Here are a few recent EC launches
Overview of eligibility conditions to purchase a new HDB
| Eligible Applicant/ Family Nucleus | You will need to qualify fow a new flat under one of the following schemes 1) Public Scheme 2) Fiance/ Fiancee Scheme 3) Orphans Scheme |
| Citizenship | - At least 1 Singapore Citizen applicant - The other co-applicant must be a Singapore Citizen or a Singapore Permanent Resident |
| Age | At least 21 years old |
| Income Ceiling | You must be within the set income ceiling for the type of flat that you intend to purchase |
| Property Ownership | 1) You do not own any other property overseas or locally and have not disposed of any within the last 30 months (2 1/2 years) 2) You have not bought a new HDB/ DBSS flat or EC, or received a CPF Housing Grant before; or, you have only bought 1 of those properties/ received 1 CPF Housing Grant thus far. |
Things to take note:
- First-timer households comprising of only 1 Singapore Citizen and 1 or more Singapore Permanent Resident family members will have to pay $10,000 premium at the point of flat purchase. You may apply for the additional $10,000 Citizen Top-Up Grant when your spouse gets Singapore Citizenship or when you have an Singapore Citizen child.
- If you have previously utilised the CPF housing grant to purchase a property from the open market, you are deemed to have utilised your first timer opportunity. You may still apply to HDB to purchase a new flat but you may be subject to a resale levy.
Public Scheme
Public Scheme
You form a family nucleus with any of the following:
- Spouse, and children (if any)
- Parents, and siblings (if any)
- Children under your legal custody, care, and control (for widowed/ divorced applicants)
No change of people listed in the application
Applications under this scheme are only valid if there are no changes to the people listed. This means that you cannot later replace your parents’ names with that of a spouse, or vice versa.
If applying for a 3Gen flat
For 3Gen flat applications, a multi-generation family is any of the following:
- Married/ engaged couple* and parent(s)^
- Widowed/ divorced with a child and parent(s)^
* The couple must be eligible to buy a flat under the Public Scheme or Fiancé/Fiancée Scheme.
^ At least 1 parent must be a Singapore Citizen or Singapore Permanent Resident.
Fiancé/Fiancée Scheme
You form a family nucleus with your spouse-to-be. Please note the following for the Fiancé/Fiancée Scheme.
Submission of marriage certificate
Under this scheme, you need to submit a copy of your marriage certificate to us:
| If You: | Submit Copy of Marriage Certificate: |
|---|---|
| Applied for the Additional CPF Housing Grant (AHG) or Special CPF Housing Grant (SHG) | On, or before taking possession of your flat |
| Booked a completed flat and did not apply for the AHG or SHG | Within 3 months of taking possession of your flat |
| Booked an uncompleted flat and did not apply for the AHG or SHG | By estimated Delivery Possession Date or within 3 months of taking possession of your flat, whichever is later |
| Solemnised your marriage before collecting your keys | To the HDB Sales Office |
| Solemnised your marriage after taking possession of the flat | To your managing HDB Branch |
Written parental consent needed if spouse-to-be is 18 years old and above, but below 21
That person can only be listed as an essential occupier in the flat application. Written consent from that person’s parents/ guardians must be submitted during the flat selection appointment.
Special Marriage Licence needed if spouse-to-be is below 18 years old
No change of people listed in the application
If applying for a 3Gen flat
For 3Gen flat applications, a multi-generation family is any of the following:
- Married/ engaged couple* and parents^
- Widowed/ divorced with a child and parents^
* The couple must be eligible to buy a flat under the Public Scheme.
^ At least 1 parent must be a Singapore Citizen or Singapore Permanent Resident.
Orphans Scheme
You and your siblings (those applying) are orphans and single (unmarried, divorced, or widowed):
- All of the siblings who are single must be listed in the same application
- At least 1 of the deceased parents was a Singapore Citizen or Singapore Permanent Resident
Please note that under the Orphans Scheme, siblings cannot buy/ rent flats separately.
Income Ceiling
| Flat Type | Income Ceiling (Average Gross Monthly Household Income) |
|---|---|
| 4-room flat or bigger | - $12,000 - $18,000 if purchasing with extended or multi-generation family |
| 3-room flat | - Non-mature estates: $6,000 or $12,000, depending on the project. - Mature estates: $12,000 - HDB's press release during the sales launches will specify the income ceiling for each project. |
The purchaser and any other applicants and essential occupiers will need to prepare:
- Latest 3 months’ payslips if employed full-time (without commission or allowances)
- 12 months’ of income documents for other types of employment
- Proof of unemployment if not working
| Nature of Employment | Documents to Submit | Notes |
|---|---|---|
| Employed person | Latest 3 months’ payslips (month of application and preceding 2 months) or Letter from employer certifying salaries for the month of application and the preceding 2 months; the letter must contain the: - Company stamp/ letterhead - Certifying officer’s name, signature, and designation Note: If your income includes allowance, we will require the latest 12 months’ payslips (month of application and preceding 11 months). | Assessment is based on the average gross monthly income, which: - Excludes bonuses and income earned from overtime work - Includes allowances (fixed/ variable) received on a regular basis (e.g. allowances for food, transport, laundry, uniform, etc.) Notice of Assessment (NOA) from the Inland Revenue Authority of Singapore (IRAS) is not accepted |
| Self-employed person | Latest NOA from IRAS or Statement of Annual Accounts certified by an audit firm and Valid Accounting and Corporate Regulatory Authority (ACRA) Computer Information (Business Profile) or valid licence of trade and Statutory Declaration to declare the average gross monthly income for the latest 12 months (month of application and preceding 11 months) | Assessment is based on the average gross monthly income for the past 12 months The Statutory Declaration can be made at the Sales Office at HDB Hub or at any HDB Branch. Declarants are required to bring along their Identity Cards If you are not in Singapore, the Statutory Declaration can be made in before a Notary Public (in United Kingdom or any part of the Commonwealth), or before a consul or vice consul (in other countries). |
| Part-time worker | Latest 12 months’ payslips (month of application and preceding 11 months) or Letter from employer certifying salaries for the latest 12 months; the letter must contain the: - Company stamp/ letterhead - Certifying officer’s name, signature, and designation | Assessment is based on the average gross monthly income for the past 12 months |
| Commission-based person | Latest 12 months’ commission statements/ payslips (month of application and preceding 11 months) or Letter from employer certifying salaries for the latest 12 months; the letter must contain the: - Company stamp/ letterhead - Certifying officer’s name, signature, and designation | Assessment is based on the average gross monthly income for the past 12 months |
| Odd job worker | Latest NOA from IRAS or Letter from employer certifying salaries for the latest 12 months (month of application and preceding 11 months); the letter must contain the: - Company stamp/ letterhead - Certifying officer’s name, signature, and designation | Assessment is based on the average gross monthly income for the past 12 months |
| Unemployed person (between 18 to 62 years old) | Statutory Declaration to declare the employment status or Valid Student Pass or letter from school/ college/ institute of learning to confirm student status, if currently a full-time student If unemployed for less than 3 months, the following documents are required: - Income proof for the preceding month(s) from the previous employer stating their gross monthly income and last day of service - Latest 15 months’ CPF contribution history | The Statutory Declaration can be made at the Sales Office at HDB Hub or any HDB Branch. Declarants are required to bring along their Identity Cards If you are not in Singapore, the Statutory Declaration can be made in before a Notary Public (in United Kingdom or any part of the Commonwealth), or before a consul or vice consul (in other countries). |
| Retired with pension | Latest 3 months’ payslips from previous employer, stating monthly pension received (month of application and preceding 2 months) or Letter from previous employer certifying the monthly pension received for the month of application and the preceding 2 months; the letter must contain the: - Company stamp/ letterhead - Certifying officer’s name, signature, and designation | Assessment is based on the average gross monthly income Notice of Assessment (NOA) from the Inland Revenue Authority of Singapore (IRAS) is not accepted |
Income/ allowance that will be considered for the income ceiling
- Allowances (fixed/ variable) received on a regular basis (e.g. allowances for food, transport, laundry, uniform, etc.)
- Pension
- Stipend
- Sustenance
Income/ allowance not considered for the income ceiling
- Alimony allowance
- Bonuses
- Director fees
- Income from overtime work income
- Interest from deposit accounts
- National Service Allowance
- Rental income
- Scholarship overseas allowance
Calculation of the $18,000 extended/ multi generation family income ceiling.
| Household Type | Income of Group A (Cannot exceed $12,000) | Income of Group B (Cannot exceed $12,000) | Extended Family Income Ceiling |
|---|---|---|---|
| Parents* with single children | Parents and 1 of the single children | Remaining single children | Group A + Group B must not exceed $18,000 |
| Parents* with married children^ | Parents and remaining working children (if any) | The married children and their children (if any) | Group A + Group B must not exceed $18,000 |
* Includes widow/ widower or divorcee
^ Includes applicants applying under the Fiancé/Fiancée Scheme
Definition of First-timer and Second-timer applicant
First-timer applicant
First-timers enjoy privileges and priority in flat allocation.
Yours will be treated as a first-timer application if you and any of the other listed owners and essential occupiers meet the following criteria:
- Not the owner of a flat bought from HDB, or an EC/ DBSS flat bought from a developer
- Not sold a flat bought from HDB, or an EC/ DBSS flat bought from a developer
- Not received any CPF Housing Grant for the purchase of an HDB resale flat
- Not taken any form of housing subsidy (e.g. benefitted under the Selective En bloc Redevelopment Scheme (SERS) or HUDC estate privatisation)
Second-timer applicant
- Have owned or sold any of the following:
- HDB flat bought from HDB
- Resale flat bought using a CPF Housing Grant
- EC/ DBSS flat bought from the developer
- Once taken some form of housing subsidy (e.g. benefitted under the Selective En bloc Redevelopment Scheme (SERS), HUDC estate privatisation)
Resale Levy
A buyer has to pay a resale levy if he has previously bought a new flat from HDB, Design, Build and Sell Scheme (DBSS) Flat, Executive Condominium (EC) from a developer or received a CPF Housing Grant.
Half-resale levy for Singles Grant recipients
If you are Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat.
Situations in which a resale levy is payable
You need to pay a resale levy in either of these cases:
- You dispose of your subsidised flat and then buy a second subsidised flat from HDB
- You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013, including those where tenders were not closed, i.e. Westwood Avenue, Canberra Drive and Anchorvale Crescent
You need not pay a resale levy if you are buying any of these:
- Design, Build and Sell Scheme (DBSS) flat from a developer
- EC from a developer; where the land sale was launched before 9 December 2013
- HDB resale flat
- Private residential property
Resale levy amount: first subsidised flat sold on or after 3 March 2006
This fixed resale levy amount gives greater certainty for financial planning, be it for upgrading to a larger flat, or right-sizing to a smaller flat.
| First Subsidised Flat Type | Households | Singles Grant recipients |
|---|---|---|
| 2-room | $15,000 | $7,500 |
| 3-room | $30,000 | $15,000 |
| 4-room | $40,000 | $20,000 |
| 5-room | $45,000 | $22,500 |
| Executive | $50,000 | $25,000 |
Resale levy amount: first subsidised flat sold before 3 March 2006
For cases where the first subsidised flat was sold before 3 March 2006, a graded resale levy applies.
| First Subsidised Flat Type | Households | Singles Grant recipients |
|---|---|---|
| 2-room | 10%* or 15% | 5%* or 7.50% |
| 3-room | 20% | 10% |
| 4-room | 22.50% | 11.25% |
| 5-room and Executive | 25% | 12.50% |
*Only applicable to 2-room flat sellers that upgrade to a larger flat type.
If the graded resale levy was not paid when you sold the first subsidised flat, i.e. you opted to defer the payment until you purchase another HDB flat, interest at a prevailing rate of 5% per annum is charged.
Waiver of Interest for Elderly
If you have sold your first subsidised flat before 3 March 2006 and right-size to a new 2-room or 3-room flat from November 2015 sales launch onwards, you will pay only the percentage resale levy, with the interest waived, if you and your spouse are aged 55 and above at the point of the new flat application. The resale levy payable is subject to a minimum payment of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat. These amounts are the resale levy payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
Paying the resale levy
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the flat.
Payment can only be made by way of your flat sale proceeds and/ or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
| Flat Sale Timeline | Resale Levy Payment |
|---|---|
| First subsidised flat was disposed of after taking possession of the second subsidised flat | Resale levy deducted from the sale proceeds upon the sale of the first subsidised flat Any shortfall to be paid in cash |
| First subsidised flat was disposed of before taking possession of the second subsidised flat | Resale levy paid in cash upon taking possession of the second subsidised flat |
Source: HDB
