SINGAPORE: The , Housing and Development Board ( HDB) on Thursday ( Nov 7 ) reported a record annual deficit of about S$ 6.78 billion ( US$ 5.1 billion ) for the 2023 financial year.
The FY2023 online gap before government grants is an increase , from the S$ 5.38 billion gap in the previous month, said HDB in a press release.
According to the statement,” HDB incurs a significant deficit every year because the total cost of Build-to-Order ( BTO ) flats and housing grants is less than the total cost of the flats and housing grants distributed.”
Of the FY2023 gap, about S$ 6.23 billion was incurred for the , Home Ownership section.
This section includes grants to qualified households, as well as the development and sale of apartments to qualified buyers as part of the different home ownership initiatives for people housing.
HOME OWNERSHIP SEGMENT
The anticipated deficit for flats that are under development, the total gap on the purchase of flats, and the award of CPF housing grants are all contributing factors to the home ownership segment’s deficit.
The provision for the “foreseeable imbalance” for cottages under development in FY2023 saw a net increase of about S$ 3.74 billion.  ,
As people housing , is very subsidised, HDB incurs deficits for BTO tasks yet as they start growth. The payment for this imbalance must be made right away.
” This is mainly due to the continued slope off in the source of BTO cottages, which saw about 22, 700 cottages start growth in FY2023, a 50 per cent increase from the 15, 100 cottages in FY2022″, said HDB.
HDB has launched over 82, 000 flats since 2021 and remains on track to offer 100, 000 flats from 2021 to 2025, it added.
Construction costs remained high, largely as a result of market uncertainties brought on by ongoing geopolitical conflicts, which could lead to negative global supply and demand shocks, according to the board.
HDB also incurred a higher , gross deficit of about S$ 1.37 billion for sales completed- keys issued to buyers- in FY2023, compared with S$ 1.2 billion in FY2022.
This was due to higher construction costs for sales completed in FY2023 ( 16, 844 ) compared with the previous year ( 18, 478 ), despite fewer units sold.
Studio apartments and flats sold on short leases are not included in this list of flat sales, HDB added.
In FY2023, the Housing Board also awarded more grants to qualified buyers of resale apartments and executive condominiums.  ,
About S$ 999 million was handed out in FY2023, an increase of about 46 per cent compared with the S$ 686 million disbursed in FY2022.
HDB noted that the , CPF Housing Grant was increased by up to S$ 30, 000 from Feb 14, 2023,” to , improve the affordability of resale flats for first-time buyers”.
” Separately, HDB stepped up works to upgrade, repair, and spruce up rental flats for lower-income Singaporeans and those in need of housing support in FY2023″, it said.
In addition to S$ 141 million in FY2022, it spent about S$ 160 million to provide rental apartments to eligible tenants in accordance with the various rental housing schemes.