SINGAPORE: The Housing Development Board (HDB) incurred a net deficit of S$1.7 billion in the financial year 2017/18 as compared with S$1.2 billion in the previous year.
According to its annual report released on Monday (Oct 22), HDB recorded a deficit of S$2.4 billion from "Housing Activities", offset by a surplus of S$749 million from "Other Activities", making it a net deficit of S$1.7 billion before government grants.
HDB incurs a deficit every year and the deficit is fully covered by a grant from the Ministry of Finance.
The bulk of HDB's deficit came from its homeownership programmes, which covers the development and sale of public housing flats.
HDB recorded a S$1.4 billion deficit from its homeownership segment compared with S$861 million in the previous year. The deficit comprises the gross loss on the sale of flats, disbursement of CPF housing grants and the expected loss for flats that are currently under development.
A total of 26,875 units were sold in the financial year 2017/18, 5,407 more than the previous year. HDB also disbursed S$466 million of CPF housing grants to eligible buyers of resale flats and executive condominiums.
HDB's upgrading segment, which covers programmes such as home improvement, neighbourhood renewal and lift upgrading programmes, reported an increased deficit of S$639 million as more flats underwent upgrading.