HDB’s deficit to remain elevated in the next few years, says MND

After ballooning to $2b in FY2013.

The Housing and Development Board’s net deficit will remain high in the next few years, Minister for National Development Khaw Boon Wan said in parliament yesterday.

HDB’s net deficit ballooned to $2b in FY2013, which Khaw blamed on the subsidy extended to buyers of new flats and the disbursement of CPF Housing Grants to eligible buyers of resale flats.

“The spike in HDB’s deficit in FY2013 was due to HDB’s ramp-up in its flat-building and upgrading programmes. The deficit will remain high in the next few years, as flats launched in the ramp-up- phase are progressively completed and handed over,” he said.

He also stated that the future deficit level will depend on several factors such as housing demand, HDB’s building and upgrading programmes, as well as development costs and policy changes.