HDB net deficit to remain high over next few years: Khaw

SINGAPORE — The Housing and Development Board’s (HDB) net deficit will continue to be high in the next few financial years as flats launched in the ramp-up phase are progressively completed, said National Development Minister Khaw Boon Wan in Parliament today (Jan 20).

Mr Khaw was responding to a question by West Coast GRC Member of Parliament Foo Mee Har about the implications of HDB’s net deficit of S$1.97 billion in FY 13/14 on Singapore and if the deficit trend will escalate in future years.

He said the bulk of HDB’s deficit is due to the Home Ownership Programme and comprises the losses on the sale and development of flats as well as the disbursement of Central Provident Fund (CPF) Housing Grants to eligible buyers.

“The spike in HDB’s deficit in FY2013 was due to HDB’s ramp-up in its flat-building and upgrading programmes,” said Mr Khaw.

He noted that the deficit level for future years will depend on several factors such as housing demand, HDB’s building and upgrading programmes as well as development costs and policy changes.

“HDB will continue to use its allocated resources judiciously to provide affordable and quality homes for Singaporeans,” added Mr Khaw.