The Housing Development Board’s annual deficit has ballooned by S$500 million to a whopping S$1.7 billion in the financial year of 2017/2018. In the last financial year, 2016/2017, the statutory board under the Ministry of National Development recorded an annual deficit of S$1.2 billion.
According to HDB’s annual report that was released yesterday, the Board registered a hefty S$2.4 billion deficit from “Housing Activities” that was offset by a S$749 million surplus garnered from “Other Activities”. This brought the net deficit to S$1.7 billion before government grants.
The majority of HDB’s deficit in the past year came from its homeownership segment, which includes programmes such as the development and sale of public housing blocks.
The annual report shows that the gross loss on the sale of flats, disbursement of CPF housing grants and expected loss for flats that are presently being developed amounted to a S$1.4 billion deficit, compared to S$861 million last year.
HDB revealed that it disbursed S$466 million of CPF housing grants to eligible buyers of resale flats and executive condominiums in the last year. It also sold a total of 26,875 units, 5,407 more than 2016/2017, this past year.
With more flats undergoing upgrading, the stat board also registered that it incurred an an increased deficit of S$639 million, given its upgrading programmes like home improvement, neighbourhood renewal and lift upgrading.
The deficit that HDB incurs each year is fully covered by a grant that is disbursed from the Ministry of Finance.