Question: I bought a private property, and thus am required to sell my HDB flat within six months to claim back the ABSD that I have paid for the private property. Unfortunately, I am finding it difficult to find a buyer, and the six months deadline is approaching. What will happen to my private property, and the HDB flat that I am holding?
Our Answer: Because you are buying a private property while still holding your HDB flat, even though you intend to sell it in the first place, you are still subjected to an ABSD as the private property would be deemed as your second property. So, what will happen to the 7% ABSD if you don’t sell off your HDB flat in time?
If you don’t sell it off in time, your ABSD will be gone—you wouldn’t be able to claim it back, and there would be no rounds for getting an extension. IRAS is pretty stringent about this rule. Take note that this six months timeline given to you starts from the date on which you exercise your Option to Purchase (OTP) for your private property, to the date a buyer signs the OTP to take over your HDB flat. Doing this will entitle yourself your ABSD back. Otherwise, it will not be claimable anymore.
If you do not manage to sell the flat within six months, subsequently you may decide again if you still would like to sell off your HDB flat, but doing so will not allow you back your ABSD.
