SINGAPORE: The Housing and Development Board (HDB) incurred a deficit of S$1.64 billion in the last financial year, down from S$2.02 billion the previous year, as it scaled back on the building of new flats.
According to its annual report released on Thursday, HDB had a deficit of S$2.25 billion due to “Housing Activities”, offset by a surplus of S$613 million from “Other Activities”, making it a net deficit of S$1.64 billion before Government grants. Upcoming executive condo launches include Hundred Palms Residences EC, Yio Chu Kang EC, Anchorvale Lane EC, while existing ones include Parc Life , Sol Acres EC, Inz Residence, The Terrace EC, Brownstone EC, The Vales EC, The Visionaire EC, Bellewoods EC, Signature at Yishun EC, The Criterion EC and Northwave EC. Hundred Palms Residences details and Hundred Palms EC show flat will be available shortly.
HDB incurs a deficit every year due to its home ownership programmes, and the deficit is fully covered by a grant from the Ministry of Finance.
The bulk of last year’s deficit came from HDB’s home ownership segment, which recorded a deficit of S$1.18 billion, a decline of 32.7 per cent from S$1.75 billion in FY2014/15. The deficit comprises the gross loss on the sale of flats, disbursement of CPF housing grants and the expected loss for flats that are currently under development.
The lower deficit was due to fewer contracts being awarded for the development of flats last year, HDB noted in its report.
“With the overall public housing market showing continued signs of stabilising, HDB has gradually tapered off the supply of new flats since 2014,” it said.
More than 15,000 new flats were launched in the last financial year, down from the 19,800 flats offered the previous year. A total of 2,206 rental units were also built, bringing the stock for rental flats to 55,131 units at the end of FY2015/16.