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23-12-14, 14:30
http://www.straitstimes.com/archive/thursday/premium/singapore/story/hdb-deficit-more-doubles-20141218
HDB deficit more than doubles
$1.97b overall net deficit
$1.93b home ownership deficit
More flats under construction
Published on Dec 18, 2014 2:34 AM
By Janice Heng
THE Housing Board's deficit more than doubled in the last financial year, as building continued on the record number of new flats launched since 2011.
In the year ended March 31, it incurred a $1.93 billion deficit on home ownership alone, according to its annual report yesterday.
The Special CPF Housing Grant's take-up rate also spiked, after the scheme for first-time buyers was enhanced to make more households eligible in July last year, the HDB said in a separate statement.
Last year's home ownership deficit was 2.7 times that of the previous financial year.
This was mainly because the HDB had more projects on the go, after three years of large Build-to-Order (BTO) launches. There were 86,298 flats under construction, up from 72,737 in the previous financial year.
The HDB thus had to make a larger provision for foreseeable loss under its operating expenses.
This is the difference between the estimated development cost and the selling price of flats. It accounted for most of the home ownership deficit last year.
The HDB's overall net deficit before government grants and taxation was $1.97 billion, up from $797 million the year before.
Mr Liang Eng Hwa, deputy chairman of the Government Parliamentary Committee for National Development, does not see the deficit as cause for worry as long as spending remains sustainable.
"To me, it's essentially social spending," he said. "In public housing, you need to have subsidies."
From 2011 to last year, the HDB launched 77,000 new flats, clearing the backlog of first-timer demand and reducing competition among applicants.
Having achieved that, it began slowing down supply this year.
Yesterday, the HDB also gave updates on policy changes introduced in the last financial year.
One change with huge effects was the July 2013 enhancement of the Special CPF Housing Grant that was first introduced in March 2011.
The income ceiling was raised and the grant was extended to four-room flats, making more middle-income households eligible.
As of the end of October, the grant had benefited about 10,500 households - more than 8,700 of whom took it up after the change.
There were also measures to cater to various groups of buyers.
Singles were allowed to buy new two-room flats from July last year. As of the end of October this year, 3,700 had booked units.
Large three-generation flats for multi-generation families were introduced in the September 2013 BTO. More than 500 have been launched and, as of October, 340 have been booked.
[email protected]
HDB deficit more than doubles
$1.97b overall net deficit
$1.93b home ownership deficit
More flats under construction
Published on Dec 18, 2014 2:34 AM
By Janice Heng
THE Housing Board's deficit more than doubled in the last financial year, as building continued on the record number of new flats launched since 2011.
In the year ended March 31, it incurred a $1.93 billion deficit on home ownership alone, according to its annual report yesterday.
The Special CPF Housing Grant's take-up rate also spiked, after the scheme for first-time buyers was enhanced to make more households eligible in July last year, the HDB said in a separate statement.
Last year's home ownership deficit was 2.7 times that of the previous financial year.
This was mainly because the HDB had more projects on the go, after three years of large Build-to-Order (BTO) launches. There were 86,298 flats under construction, up from 72,737 in the previous financial year.
The HDB thus had to make a larger provision for foreseeable loss under its operating expenses.
This is the difference between the estimated development cost and the selling price of flats. It accounted for most of the home ownership deficit last year.
The HDB's overall net deficit before government grants and taxation was $1.97 billion, up from $797 million the year before.
Mr Liang Eng Hwa, deputy chairman of the Government Parliamentary Committee for National Development, does not see the deficit as cause for worry as long as spending remains sustainable.
"To me, it's essentially social spending," he said. "In public housing, you need to have subsidies."
From 2011 to last year, the HDB launched 77,000 new flats, clearing the backlog of first-timer demand and reducing competition among applicants.
Having achieved that, it began slowing down supply this year.
Yesterday, the HDB also gave updates on policy changes introduced in the last financial year.
One change with huge effects was the July 2013 enhancement of the Special CPF Housing Grant that was first introduced in March 2011.
The income ceiling was raised and the grant was extended to four-room flats, making more middle-income households eligible.
As of the end of October, the grant had benefited about 10,500 households - more than 8,700 of whom took it up after the change.
There were also measures to cater to various groups of buyers.
Singles were allowed to buy new two-room flats from July last year. As of the end of October this year, 3,700 had booked units.
Large three-generation flats for multi-generation families were introduced in the September 2013 BTO. More than 500 have been launched and, as of October, 340 have been booked.
[email protected]