HDB’s fiscal year 2022 deficit is expected to reach S$5.4b
Nearly 90 percent of first timer families are able, thanks to the CPF and market discounts, to service their home loans without having to pay any cash.
In addition to the significant market discounts offered to Standard flats, the Board said that they will add a subsidy to Plus and Prime flats.
These flats come with a subsidy recovery period, a longer minimum occupation period (MOP), and tighter rental and resale conditions to ensure subsidised housing is fair and inclusive today and into the future for Singaporeans.
Housing is an important part of our social compact. The government will support Singaporeans as they embark on the journey of home ownership.
HDB has revealed that its loss expectation for flats still under construction in FY2022 will be S$2.7bn, up from S$2.3bn in FY2021. This is because the amount of money collected from flat sales remains below the cost of BTOs and housing grant disbursed.
A gross loss for all completed sales of S$1.2 billion was also recorded, almost double the loss reported last year.
HDB achieved sales of 18,478 apartments in FY2022, including studios and flats on short leases. It was the highest figure of the last five sales years.
The Central Provident Fund housing grant for resale condos and executive condominiums was reduced to S$686m in FY2021 from S$849m the previous year.
Housing and Development Board’s (HDB) net deficit for FY 2022 was S$5.4 billion, surpassing the S$4.4 million record set in FY2021.
As in the previous fiscal year, the net deficit for this fiscal year was due primarily to a shortfall with the public housing program.
Home Ownership Programme – S$4.7 Billion was spent to develop Build-to-Order (BTO), flats as well to provide housing grants and subsidies. The S$4.7bn spent for the programme was a 22 percent increase over its S$3.9bn expenditure in FY2021.
HDB stated that the number of resale deals had decreased to 27,900 from 30,400 the year before.
The board also reported that it had spent S$141m on making provisions for the rental of flats to tenants who are eligible under various rental housing schemes. This was up from S$121m in FY2021.
It was partly due to spending for upgrading electrical supply in HDB housing estates. The board claimed that they “caught up with the earlier delays” caused by the pandemic.
HDB has confirmed that it will launch 23,000 new flats by 2023.
It will continue monitoring the housing demand and making necessary adjustments, in order to achieve its target of launching a total 100,000 flats by 2025.
A further S$558million was spent on upgrading programs, up 40% from S$392million in FY2021. The increased expenditure on such programmes is mainly due to construction projects under the Home Improvement Programme.
33,704 apartment units were upgraded through HIP in FY2022. Over half of residents with flats that underwent HIP chose elderly-friendly fixtures at subsidised rates through the Enhancement for Active Seniors program.
HDB has spent an additional S$432 million on residential ancillary activities, such as lease administration, the provision and management facilities, like parking lots in housing estates, planning, and building administration.