HDB incurs a net deficit of $6.775b in FY 2023

A total of $6.225b was spent to develop BTO flats and provide housing subsidies and grants.

The Housing & Development Board (HDB) incurred a net deficit of $6.775b before government grants in the financial year 2023 (FY 2023), which is higher than the $5.38b deficit incurred in FY 2022.

Of the $6.775b deficit, $6.225b was incurred for the Home Ownership segment, stemming mainly from the expected deficit for flats that are currently under development, gross deficit on the sale of flats, and disbursement of CPF housing grants

“With the continued ramp-up in the supply of Build-To-Order (BTO) flats, we commenced construction works on about 22,700 flats— a 50% increase from the 15,100 units in FY 2022,” said Tan Meng Dui, CEO of HDB.

“We continued to price BTO flats with significant market discounts and provided additional subsidies for Prime Location Public Housing flats to ensure that these projects remained within reach to a wide range of Singaporeans,” Dui added.

HDB incurs a deficit every year as the amount collected from the sale of flats is lower than the total development cost of BTO flats and housing grants disbursed.

Moreover, HDB has also spent about $160m for the provision of rental flats to eligible tenants under the various rental housing schemes, up from $141m in FY 2022.

In FY 2023, HDB spent $396m on upgrading programmes such as the Neighbourhood Renewal Programme, Home Improvement Programme, and Lift Upgrading Programme.

They have also spent $446m on residential ancillary functions in FY 2023, including lease administration, provision and management of facilities such as car parks in housing estates, and planning and building administration.