HDB ran a S$6.775 billion deficit in FY2023 to keep public housing prices down, up from S$5.38 billion the year before.
KEY POINTS
IN SIMPLE TERMS
HDB is spending more money than it earns because it wants to make sure Singaporeans can afford to buy their own homes. The board is building more flats, giving out bigger grants to help buyers, and fixing up older buildings—all to keep housing affordable.
WHY IT MATTERS
WHERE DO YOU STAND?
Should HDB accept even larger deficits to make public housing more affordable for Singaporeans?
👍 👎 Vote ↓Singapore’s Housing and Development Board faces financial challenges to maintain affordable public housing amidst rising costs.
In a press release by Housing & Development Board, it reported a net deficit of S$6.775 billion for Financial Year 2023.
This deficit is higher than the S$5.38 billion deficit in FY 2022.
The Home Ownership segment made up S$6.225 billion of the total deficit.
HDB’s CEO, Mr Tan Meng Dui, said, “Enabling Singaporeans to own their homes remains HDB’s key priority.”
He added that the deficit shows Housing & Development Board’s commitment to keep public housing affordable and accessible.
HDB started building about 22,700 BTO flats in FY 2023.
This is 50% more than the 15,100 units in FY 2022.
The expected deficit for flats under construction rose to S$3.738 billion in FY 2023.
This is up from S$2.712 billion in FY 2022.
| Financial Year | BTO Flats Started | Expected Deficit |
|---|---|---|
| 2023 | 22,700 | S$3.738 billion |
| 2022 | 15,100 | S$2.712 billion |
Housing & Development Board gave out more CPF housing grants in FY 2023.
Eligible resale flat buyers received S$999 million in total.
This is about 46% more than the S$686 million given in FY 2022.
First-time families can now get up to S$80,000 in CPF Housing Grant for a 2-room to 4-room resale flat.
This is an increase from the previous S$50,000 grant.
HDB spent about S$160 million to upgrade and repair rental flats in FY 2023.
This is up from S$141 million in FY 2022.
The board also spent S$396 million on various upgrading programmes, including the Neighbourhood Renewal Programme.
Mr Tan Meng Dui stated, “The substantial deficit incurred under the Home Ownership segment… underscores our commitment to keep public housing affordable, accessible and inclusive…”
The board highlighted that 8 in 10 first-timer families can pay for their housing loans using CPF, with little or no cash payment.
This is due to the significant market discounts for new flats and various housing grants.
Housing & Development Board has launched more than 82,000 BTO flats since 2021.
The board aims to reach a total supply of 100,000 flats from 2021 to 2025.
This shows HDB’s ongoing efforts to provide affordable housing options for Singaporeans.
Do you think Housing & Development Board should increase its deficit further to make public housing even more affordable for Singaporeans?
Should HDB accept even larger deficits to make public housing more affordable for Singaporeans?
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