Record $6.775b HDB deficit amid BTO ramp-up, high costs

High construction costs and a continued ramp-up in the supply of Build-To-Order (BTO) flats led the Housing Board to report a record housing deficit of $6.775 billion for the 2023 financial year (FY) from April 2023 to March 2024.

- Isabelle Liew

This was about 26 per cent higher than the $5.38 billion deficit the national public housing authority recorded the previous year, according to its annual report released on Nov 7.

The bulk of the deficit – $6.225 billion – was attributed to expected losses for flats being built, disbursement of Central Provident Fund housing grants, and a gross loss on the sale of subsidised flats under its home ownership programme, HDB said in a statement on its annual report.

The losses incurred under this programme were 33 per cent higher than the $4.68 billion deficit recorded in the previous year.

HDB chief executive Tan Meng Dui said the deficit incurred under the home ownership segment shows the board's commitment to keeping public housing affordable amid rising costs.

Between April 2023 and March 2024, HDB started construction on about 22,700 BTO flats, a 50 per cent increase from the 15,100 units in the previous financial year, he added.

Based on its annual report, HDB completed 18,450 new flats in FY2023, down 22 per cent from the 23,782 new units in the previous year. It also issued 19,345 keys to home owners, fewer than the 21,259 keys handed out the previous year.