The Housing and Development Board’s (HDB) net deficit will remain high in the coming years, as flats launched in the ramp-up phase in FY2013 are progressively finished and handed over, said National Development Minister Khaw Boon Wan in parliament.
HDB racked up a net deficit of $1.97 billion in the financial year ended March 2014, which Mr Khaw said was the result of government policies to provide good, affordable public housing, and quality living environments in HDB towns.
He added that the bulk of the housing board’s deficit was due to subsidies for new flats and the disbursement of CPF housing grants to eligible buyers.
The Minister was responding to a query from West Coast GRC MP Foo Mee Har about the implication of HDB’s deficit on Singapore and whether it would escalate in future.
Looking ahead, Mr Khaw explained that the deficit will depend on factors such as housing demand, HDB’s building and upgrading programmes, development costs, and policy changes.
But he assured parliament that HDB will continue to use its resources prudently to provide affordable and quality homes for Singaporeans.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
