The Housing Board’s net deficit rose to $1.973 billion for the financial year ended March 2014, or more than double than the $797 million deficit posted during the previous financial year, reported the media.
Its home ownership segment also saw its deficit increase from $719 million to $1.927 billion.
HDB explained it incurs deficit every financial year to provide Singaporeans with homes. For FY2013/2014, the bulk of the deficit came from its home ownership programmes, which is mainly made up of the gross loss on the sale of flats, the expected loss for flats currently under development and disbursement of CPF housing grants.
“The higher deficit on home ownership … testifies to the HDB’s stepped-up efforts in FY2013/14 to deliver on the building programme, to help Singaporeans realise their home ownership dream and to provide homes for lower-income families,” it said.
Notably, this annual deficit is covered by a government grant of about $2.12 billion.
HDB’s annual report released yesterday showed that 13,310 homes were sold during the last financial year, or an increase of 2,777 units than that sold during the previous year.
HDB noted it also introduced a series of improvements to its programmes, which include raising the income ceiling for the Special CPF Housing Grant and extending the scheme to first-time home buyers of four-room flats in non-mature estates.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories emailmuneerah@propertyguru.com.sg
