HDB’s deficit eases slightly to $6.34b amid BTO roll-out; $532m spent on upgrading works

SINGAPORE – The roll-out of Build-To-Order (BTO) flats and the disbursement of housing grants led the Housing Board to report a deficit of $6.34 billion for the 2024 financial year (FY) from April 2024 to March 2025.

This eased slightly from the

record housing deficit of $6.775 billion

that the national public housing authority reported the previous year, according to its annual report released on Nov 11.

The bulk of the deficit – $5.51 billion – was attributed to expected losses for flats being built, disbursement of Central Provident Fund (CPF) 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 about 11.5 per cent lower than the $6.225 billion deficit recorded in the previous year.

HDB chief executive Tan Meng Dui said the deficit incurred shows the board’s commitment to providing affordable and quality homes for Singaporeans, as well as upgrading estates and flats to keep them vibrant and liveable.

Between April 2024 and March 2025, HDB started construction on about 23,600 BTO flats, he added.

Based on its annual report, HDB issued a total of 17,633 keys to home owners, fewer than the 19,345 keys handed out the previous year.

It also completed 20,294 new flats in FY2024, up 10 per cent from the 18,450 new units in the previous year.

Of the $5.51 billion deficit incurred in the home ownership segment, $2.69 billion stems from the expected losses for flats being built, after adjusting for flat sales completed. This was down from the $3.738 billion deficit in FY2023.

HDB incurs a deficit because the amount it collects from buyers from the sale of flats is less than the total development costs of BTO flats and the housing grants disbursed.

It also incurred a gross, or an actual, loss of $1.77 billion for the sale of flats, which HDB attributed to higher construction costs, despite fewer units being sold.

In FY2024, 14,893 flats were sold, down 11.6 per cent from the 16,844 units sold in FY2023.

Meanwhile, CPF housing grants totalling $881 million were disbursed to buyers of HDB resale flats and executive condominium units from April 2024 to March 2025, down from $999 million the year before.

Separately, the board spent about $159 million on the provision of rental flats, which included upgrading works to spruce up the units.

It also spent $532 million on upgrading programmes, a 34 per cent increase from the $396 million in the previous year. HDB said this was due to more Home Improvement Programme projects reaching their peak construction phase, when spending is typically the highest.

Its report showed that 22,540 homes were upgraded under the programme, and another 82,000 flats in towns such as Choa Chu Kang, Pasir Ris and Tampines were selected for upgrading.

HDB said these flats will benefit from a new repair method to address spalling concrete in toilets, which will significantly reduce the likelihood of reoccurrence.

Another $570 million was spent on ancillary functions, such as lease administration and the management of facilities like carparks.

This was up by 28 per cent from the $446 million spent in FY2023 because of higher expenditure on a programme to upgrade the electrical supply in older public housing blocks. HDB said more blocks were upgraded to accommodate residents’ growing electricity needs.

In all, HDB incurred a total housing deficit of $6.77 billion, based on its financial statements. Taking into account a $428 million surplus from rental and other activities, this brought its overall deficit to $6.34 billion.

HDB receives a grant from the Ministry of Finance to cover its deficit each year.

In the latest financial year, it received a grant of $6.349 billion, down from $6.79 billion the year before.

Since it was set up in 1960, HDB has received $61.499 billion in grants.

The board said that with significant market discounts provided for new flats and housing grants, nine in 10 first-time buyers who are families and who collected keys to their BTO flats in 2024 can service their HDB loans using CPF contributions, with little or no cash payment.

It added that it will launch about

55,000 new flats from 2025 to 2027 to meet housing demand

. Of these, 4,000 flats with shorter waits of below three years will be offered each year in 2026 and 2027.

To support these new flats, HDB said in its report it will roll out 97 infrastructure projects, totalling $1.3 billion in value, to serve HDB towns such as Berlayar in Bukit Merah, Mount Pleasant, Sembawang, Tengah, and Chencharu in Yishun.