Housing and Development Board's deficit slips 18.8% to $1.64b

This is due to gradually tapering off new flats supply.

The Housing and Development Board (HDB) has successfully managed to tone down its deficits, as it recorded an 18.8% decline from $2.02 billion in the previous year.

According to its latest annual report, HDB incurred a deficit of $1.64 billion in the latest financial year. It had $2.25 billion deficit due to housing activities. This was offset by a surplus from other activities amounting to $613 million.

The board incurs deficit annually due to its home ownership programs. These deficits are fully covered by a grant from the Ministry of Finance.

HDB said this drop in deficit is due to the tapering off of flat supply.

“With the overall public housing market showing continued signs of stabilising, HDB has gradually tapered off the supply of new flats since 2014,” the housing board said in a statement.

To recall, more than 15,000 new flats were launched in the last financial year, a smaller number from the 19,800 flats offered in the previous period. Overall, a total of 2,206 rental units were also built, bringing the stock for rental flats to 55,131 units at the end of FY2015/16.