The Housing & Development Board (HDB) spent over $6 billion in the last financial year (FY2024) to keep public housing affordable and liveable for Singaporeans.
In a press release on November 11, HDB said it ran a deficit of $6.34 billion before government grants, meaning it spent much more than it earned from selling flats.
Most of this, about $5.51 billion, went into building and selling flats, and giving out housing grants to eligible families. Another $532 million was used for upgrading and rejuvenation works in HDB towns.
HDB Chief Executive Officer Tan Meng Dui said:
“Our substantial deficit in FY 2024 reflects our unwavering commitment to providing affordable and quality homes for Singaporeans.”
He also added that during the FY, HDB continued to roll out a steady supply of Build-To-Order (BTO) flats, commencing construction on about 23,600 flats to meet housing demand. At the same time, as the towns and flats age, HDB also invested heavily to upgrade them, with $532 million spent on upgrading programmes to keep HDB estates vibrant and flats liveable.
Where the money went
HDB said it lost money mainly because new flats are sold below cost to keep prices low.
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$1.77 billion was lost from selling about 14,900 completed flats.
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$2.69 billion was set aside for ongoing housing projects.
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$881 million went to CPF housing grants for resale and Executive Condominium buyers.
HDB also spent $159 million on rental flats for lower-income families and those who need housing help.
Upgrading older flats and towns
In FY2024, HDB spent $532 million on upgrading works, 34% higher than what it spent in FY2023.
This includes projects like the Home Improvement Programme (HIP), Neighbourhood Renewal Programme, and Lift Upgrading Programme (LUP).
It also spent $570 million to maintain car parks, leases, and electrical upgrades so homes can handle more power-hungry appliances.
HDB: Public housing will stay affordable and accessible
Even with such a big deficit, HDB said public housing will stay affordable and accessible.
In 2024, 9 in 10 first-time families who got their BTO keys could pay their monthly loans fully using CPF, with little or no cash needed.
To meet demand, HDB plans to launch about 55,000 new flats from 2025 to 2027, including 4,000 Shorter Waiting Time (SWT) flats each year from 2026 to 2027.
“We’ll keep reviewing our housing policies to make sure public housing remains affordable and inclusive,” said HDB.
