By MP for Aljunied GRC, Muhamad Faisal Bin Abdul Manap
[Delivered in Committee of Supply on 11 March 2013]
Mdm, I understand that the resale levy is introduced to reduce the subsidy on the 2nd subsidised flat with the function of exercising fairness in the granting of housing subsidies between 1st and 2nd-timer citizen families and to grant priority to 1st timers who have more urgent housing needs.
The resale levy itself constitutes a financial burden to owners with a monthly income of $1,500 and below. Often during my Meet-the-People sessions, I have come across many lower income families who have been advised by the HDB to sell off their flat due to outstanding arrears or owners who have been ordered by the Court to sell off their matrimonial flat due to a broken marriage.
Under the circumstances depicted above, it is noteworthy to highlight that the owner has little or no choice, as a result of evolving life circumstances to sell off their property. In the first place, these families already face considerable financial difficulties and the proceeds from the sale of the flat would provide some much-needed financial breathing space. At the same time, the owner has been debarred from renting a flat directly from the HDB and hence has to resort to paying open market rental rates. Any sales proceeds received would then be depleted by exorbitant rental rates. Moreover, by the time the owner decides to obtain a new flat, he would not have the financial means to pay for his resale levy. This has the effect of limiting his housing options and his desire for a new start.
Hence, I would like to call upon the Ministry to consider allowing the resale levy to be incorporated into the new housing mortgage to be paid together with the monthly mortgage installment for lower-income families.
