(Singapore, 31/10/2022) The Housing and Development Board (HDB) reported a record net deficit of S$4.367 billion in Financial Year (FY) 2021.

This is the highest ever deficit recorded since the inception of public housing in Singapore in 1960.

In a press release covering its FY2021/FY2022 annual report, which covers the period of Apr 1, 2021 to Mar 31, 2022, it said that this amount – calculated before government grant – is 86% higher than the S$2.346 billion deficit incurred in FY2020.

Of the S$4.367 billion deficit, S$3.85 billion was incurred for the Home Ownership segment in FY2021, HDB said. This is almost double the S$1.953 billion deficit recorded in FY2020. It stems mainly from the expected loss for flats that are currently under development, gross loss on the sale of flats and disbursement of CPF housing grants.

Other contributing factors to the deficit include that from rental of HDB flats under the various rental housing schemes; higher expenditure for residential ancillary functions, including car park improvement; and the rejuvenation of towns and flats, including 53,792 units under the Home Improvement Programme (HIP).

Meeting housing demand

HDB said it will continue to provide public housing that is affordable and accessible for Singaporeans.

To meet the strong housing demand, HDB has been ramping up the supply of BTO flats and will launch up to 23,000 flats per year in 2022 and 2023, it said.

“This is a significant increase of 35% from the 17,000 flats launched in 2021. This means that not only will more buyers be able to secure their BTO flats, and in a wider range of locations, they will also be able to select from a larger pool of flats that meet their budgets,” HDB sai., adding that it is also prepared to launch up to 100,000 flats in total from 2021 to 2025, if needed.”