HDB posts $6.3b deficit in FY 2024 with $5.5b from housing

Despite the elevated expenditure, HDB said public housing remained affordable.

The Housing & Development Board (HDB) reported a net deficit of $6.3b before government grants in FY 2024, with the Home Ownership segment accounting for the bulk of the shortfall at $5.5b.

A combination of costs drove the Home Ownership deficit. HDB recorded a gross loss of $1.8b from the sale of approximately 14,900 completed flats. In addition, it made a provision of $2.7b for foreseeable loss on flats still under development.

$881m in CPF Housing Grants was also disbursed during the year to support first-time buyers of resale flats and Executive Condominiums.

HDB’s build-to-order (BTO) supply ramped up during the year, with construction commencing on about 23,600 flats. Looking ahead, the agency plans to launch around 55,000 new flats between 2025 and 2027, including approximately 4,000 Shorter Waiting Time (SWT) flats annually in 2026 and 2027.

Spending on upgrading and rejuvenation efforts rose sharply in FY 2024. HDB spent $532m on programmes such as the Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP), and Lift Upgrading Programme (LUP), a 34% increase from FY 2023 as more HIP projects reached peak construction.

In terms of rental housing support, HDB allocated $159m to the provision and enhancement of rental flats for lower-income households and tenants in need.

Another $570m was spent on lease administration and estate facilities, including car parks. This increase was partly attributed to the Electrical Load Upgrading Programme (ELUP), which aims to meet growing electricity demands in households due to modern lifestyle needs.

Despite the elevated expenditure, HDB said public housing remained affordable. In 2024, nine in 10 first-timer families who collected keys to their new BTO flats serviced their monthly HDB loans entirely using CPF, with little or no cash outlay required.