More HDB flats built last year, sharp increase in deficit recorded

SINGAPORE — More flats were built last year, but fewer were sold compared to the year before, according to the Housing and Development Board’s (HDB) annual report released yesterday.

A total of 72,737 dwelling units were in various stages of construction in FY12/13, a 28 per cent increase from the 56,938 homes in the previous year. In addition, 2,366 rental units were under construction and 129,349 units were upgraded.

The ramp-up in supply is in tandem with the almost 200,000 public and private residential units expected to be ready by 2016, as previously announced by Minister for National Development Khaw Boon Wan.

Said HDB Chief Executive Officer Cheong Koon Hean in the report: “The challenge ahead is to ensure smooth completion and delivery of the new flats, given the large volume and resources involved.”

The HDB recorded a sharp increase in its deficit, which amounted to S$797 million, up from S$443 million the year before.

Most of the deficit was due to “housing”, which covers the development and sale of HDB flats and upgrading costs, among others.

The amount was covered by a grant provided by the Government amounting to S$1.042 billion, up from a grant of S$746 million in the previous year.

The HDB sold 10,533 flats in FY12/13, 2,016 less than it did the year before, resulting in a gross loss of S$231 million in sales.

A total of 26,252 flats were built in the six Build-to-Order exercises last year, a dip from the 28,424 units built in the previous year.

With a drop in housing grant applications for resale and Design, Build and Sell Scheme (DBSS) flats, less was disbursed in CPF housing grants to eligible buyers of resale flats, DBSS flats and Executive Condominiums — S$178 million compared to S$235 million the year before.

Upgrading programmes such as the Lift Upgrading Programme — which was at its tail-end in the last financial year — the Home Improvement Programme and Neighbourhood Renewal Programme, also ran at a deficit of S$619 million during the last financial year.

The rental segment recorded a higher deficit of S$61 million, compared to S$57 million the year before, due to more rental flats being leased out at subsidised rental rates to meet demand.

During the year, the HDB raised S$6 billion and redeemed S$0.85 billion of unsecured Fixed Rate Notes. Total outstanding Notes under the Medium Term Note Programme was S$14.39 billion as at March 31.