How to Compute Your Estimated Sales Proceeds for HDB Property Transactions


How much would you really profit from selling property in Singapore? Whether you are selling your HDB flat because you want to buy a new one in a new location, pay for other loans or debts, or just want to make a profit from the real estate market, you have to compute how much your estimated sale proceeds are before finalising the transaction.

Will your net profit be enough to fulfil your goal after you deduct these items?

5 Things You Need to Deduct From Your HDB Sales Proceeds

Simply put, your sale proceeds from selling your flat is the purchase price that you set, less the following if applicable:

1. Outstanding mortgage loan

If you haven’t fully paid for your current flat yet, the outstanding part of the loan will be deducted from the resale price, if sufficient. If not, you will need to pay the balance in cash. Other funds that can be used to pay this off include the deposit that you received from the buyers, as well as any Central Provident Fund (CPF) refunds you might have received. So, before selling your flat, check how much you still owe for your HDB loan or bank loan.

2. CPF monies used

If you used any CPF monies as either part of the down payment or of the monthly instalments in buying your current flat, you will need to return this amount with accrued interest to your CPF account when you sell the flat. Check with the CPF how much you will have to return from the purchase of your current flat. But if you’re 55 years old or older, check with the Board about CPF refunds when you sell your flat.

3. Resale levy

If you are selling your current flat to buy another subsidized flat or certain Executive Condominiums, you will need to pay a resale levy. You will be told if you will need to pay a resale levy when you register your Intent to Sell at the HDB Resale Portal. If you need to pay this levy, this will not be deducted from the sale proceeds. But since you will need to pay it anyway, you might as well allot some of the sales proceeds for it.

4. Upgrading costs

If you are still the owner of the flat when the upgrade bill was issued, you will need to pay the upgrade costs. This can be deducted from the resale price, paid in cash, or paid with CPF savings. You can find out the status of the upgrading of your flat as well as the upgrading costs when you register your Intent to Sell at the HDB Resale Portal. You can also check the status of the upgrading programme to see how your current flat is affected.

5. Upgrading levy

After you sell the flat, you will need to pay an upgrading levy if the flat you sold is in an upgraded precinct. The upgrading levy is 10% of the flat’s declared selling price or 10% of 90% of its market value, whichever is higher. However, if you are a Singapore Citizen who is selling your second or subsequent flat that has benefited from the Main Upgrading Programme (MUP), you may be exempt from paying the upgrading levy. Check with the HDB if you need to pay this levy or not.

If you need professional advice on calculating sale proceeds and overall financial planning when selling your property, check out our HDB Seller Agent Service.

Hi! 😊 Let's have a chat with us!