HDB’s FY2022 deficit widens to a record S$5.4 Billion

Housing and Development Board reported a net loss of S$5.4 Billion for its fiscal year 2022. This is a record breaking S$4.4 Billion, set in FY2021.

The latest net deficit was also primarily due to the shortfall in the housing programme for the public.

The Home Ownership Programme spent S$4.7 billion to build Build-To-Order flats (BTO), as well as provide housing subsidies and grant. The S$4.7 billion spent on the Home Ownership Programme was a 22 per cent increase from S$3.9 in FY2021.

Housing is the cornerstone of our compact social. The government will continue its support of Singaporeans on their journey to home ownership.

HDB’s expected loss on flats in development for FY2022 is S$2.7 billion compared to S$2.3 billion during FY2021. The amount collected through the sale of flats is lower than the development costs of BTO flats, and the housing grants that have been disbursed.

A larger gross loss of S$1.2billion for completed sales was also reported, nearly doubling the S$659m loss reported in the previous year.

HDB sold 18,478 flats in FY2022, excluding studio apartments and short-term leases. This was the highest number of sales in the past five years.

Housing grants from the Central Provident Fund were distributed to buyers of resale apartments and executive condominiums in FY2021, but this year they were lower at S$686m, compared to S$849m for FY2021.

HDB said that this is in line the decrease in resale transaction numbers from 30,400 to 27,900 in FY2022, compared to the previous year.

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The board said that it also spent S$141 millions to provide rental flats for eligible tenants under different rental housing schemes. This is up from S$121million in FY2021.

The upgrade programmes accounted for another S$558 millions, an increase of 40% from S$392 in FY2021.

The increase in expenditures for these programmes can be attributed primarily to the construction work under the Home Improvement Programme, which increased due to the relaxation of Covid-19.

In FY2022, 33,704 apartments were upgraded under HIP. More than half of the residents who had their flats upgraded under HIP chose to have elderly-friendly fittings installed at subsidised prices under the Enhancement for Active Seniors Programme.

HDB also spent S$432m on residential ancillary services, including leasing administration, provision of and management for facilities like car parks, in housing estates and planning and building administration.

The board stated that it had “caught-up on earlier delays due to the pandemic” and the expenditure was partly for upgrading the electrical supply in HDB Estates.

HDB said that it is on track to deliver up to 23,000 apartments by 2023.

It will continue to closely monitor the housing market and make any necessary adjustments to reach its goal of launching 100,000 flats between 2021 and 2025.

Close to 90% of first-time families were able to service housing loans with CPF using the market discounts and housing grants. They had to spend little or no money.

The board announced that it would add additional subsidies to the market discount for Standard flats in order to offer Plus and prime flats.

The flats also include a longer MOP (minimum occupancy period), as well as stricter conditions for rental and resale. This is to ensure that public housing subsidised by Singaporeans remains fair for Singaporeans now and in the future.