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SINGAPORE – The Housing Board’s deficit increased to $ 2.66 billion in the financial year ended March 31, from approximately $ 1.98 billion the previous year.
This is the highest deficit figure so far.
It is due in large part to a gross loss on the sale of flats, the disbursement of housing grants from the Central Provident Fund (CPF), and the expected loss for flats that are currently under development.
In its annual report released on Friday (October 23), HDB posted a deficit of about $ 3.11 billion in its housing programs, offset by a surplus of $ 446 million from other activities.
In financial year 2019/2020, $ 631 million in CPF housing grants were awarded to eligible buyers of resale apartments and executive condos, compared to $ 532 million in the prior financial year.
On the improvement front, the Board saw the deficit decrease to $ 440 million, down from $ 557 million in the prior financial year. The development programs for developments are the Home Improvement Program (HIP), the Neighborhood Renovation Program, and the Elevator Improvement Program for developments.
The decrease in the deficit was due to lower spending for HIP compared to the previous year, HDB said.
The board of directors recorded a lower gross loss of $ 721 million, attributed to the lower number of apartments sold. A total of 11,609 units were sold in fiscal 2019/2020 compared to 16,608 units in the prior year.
Every year the HDB receives a grant from the Ministry of Finance to finance its deficit. This year, the grant is $ 2.69 billion, compared to $ 2.03 billion the year before.
Cumulative government grants provided to HDB since its establishment in 1960 now total $ 36.22 billion.
Last September, the HDB announced a simplified grant structure Enhanced CPF Housing Grant (EHG) and increased income limits for eligible buyers.
According to the EHG, eligible buyers of new and resale flooring can earn a grant of up to $ 80,000, with no restrictions on their choice of flooring type and location.
Balanced Apartment Re-Offer exercises were also scrapped in March this year, a measure to help home buyers access flats more quickly.
All unsold Build-to-Order (BTO) flats will first be offered through the Balanced Apartment Sale exercises, and those that remain unselected will be offered directly for open booking, allowing home applicants to apply for a flat. new all year round.
Today, 80 percent of Singapore’s population lives in HDB apartments, and about nine out of 10 own their homes.
HDB President Bobby Chin said 2020 is a landmark year for the board, as it marks its 60th anniversary.
He said: “However, the Covid-19 pandemic has shown us that even the best designed plans can be interrupted by unforeseen challenges. It has also uncovered opportunities in future home design and planning, especially in the areas of health and wellness. ” he said.
“With our fingers on the pulse of the built environment, HDB will remain resilient and focused on our goal of developing the best possible homes for Singaporeans.”
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