HDB reports S$6.775B deficit for FY2023, higher than FY2022

SINGAPORE: The Housing & Development Board (HDB) reported a net deficit of S$6.775 billion before government grants for the financial year 2023 (FY2023), up from S$5.38 billion in the previous financial year.

According to Singapore Business Review, the bulk of the deficit, S$6.225 billion, came from the Home Ownership segment.

This was largely due to the expected shortfall from flats still under construction, the overall deficit from the sale of flats, and the disbursement of Central Provident Fund (CPF) housing grants.

Tan Meng Dui, CEO of HDB, explained that with the continued increase in the supply of Build-To-Order (BTO) flats, they began construction on around 22,700 flats, which is 50% more than the 15,100 units built in FY2022.

He added that to keep flats “within reach to a wide range of Singaporeans,” BTO flats were priced with significant market discounts, and extra subsidies were provided for Prime Location Public Housing flats.

Each year, HDB runs a deficit as the money collected from flat sales is less than the total cost of developing BTO flats and the housing grants provided.

HDB spent approximately S$160 million on rental flats for eligible tenants under various housing schemes, an increase from the S$141 million spent in FY 2022.

HDB also spent S$396 million in FY 2023 on upgrading projects like the Neighbourhood Renewal Programme, Home Improvement Programme, and Lift Upgrading Programme.

They also spent S$446 million on managing residential services, such as lease administration, car parks facilities in housing estates, and planning and building administration. /TISG

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