HDB deficit narrows to $4.7b in FY2025

SINGAPORE – The roll-out of Build-To-Order (BTO) flats and the disbursement of housing grants led the Housing Board to incur a net deficit of $4.7 billion for the 2025 financial year (FY), from April 2025 to March 2026.

This was a drop from the $6.34 billion deficit that the board recorded in FY2024.

The net deficit comprised a $5.13 billion shortfall from HDB’s core activities, such as the construction and sale of flats. This was offset by a $419 million surplus from other activities, such as the management of commercial properties.

Most of the deficit came from the board’s “home ownership” responsibilities, particularly the expected losses on flats under development and the losses incurred from the sale of flats.

In total, the board incurred a deficit of $4 billion from these activities in FY2025, down from $5.51 billion in FY2024.

It completed 15,417 flats in FY2025, down from 20,294 in FY2024, but had 100,122 flats under construction during the latest financial year, more than the 91,941 units in the year before.

In addition, HDB issued keys to 19,254 households in FY2025, up from 17,633 in the year prior.

Of the $4 billion deficit from these home ownership activities, $1.75 billion arose from flat sales, while another $1.31 billion came from expected losses on flats under construction, after accounting for flats that had been sold. HDB incurs a deficit because revenue from flat sales is insufficient to cover the total development costs of BTO flats and the housing grants given to buyers.

Part of the home ownership deficit included $711 million in CPF housing grants disbursed to eligible buyers of resale flats and executive condominiums.

Separately, the board incurred a deficit of $279 million from upgrading programmes in FY2025, down from $532 million in the year before.

These programmes included the Home Improvement Programme (HIP), Neighbourhood Renewal Programme and Lift Upgrading Programme.

In its annual report, HDB said the decrease in the deficit was due to lower expenditure on HIP, as upgrading works for some projects were close to completion, with the bulk of the expenditure already incurred in previous years.

Other HIP projects, it said, remained in their early stages, with spending yet to ramp up.

In addition, a $673 million deficit was incurred from residential ancillary functions, which included lease administration and the provision and management of facilities such as carparks. The figure was $570 million in FY2024.

HDB said the larger deficit was due in part to higher expenditure on electrical supply upgrading works for older blocks to accommodate residents’ growing electricity demand.

The deficit from rental flat operations stood at $171 million in FY2025, up from $159 million in FY2024.

The board’s net deficit was partially offset by a net surplus of $419 million from other rental and business activities, such as providing, leasing and managing commercial properties and land.

To finance its deficit, the board received a $4.73 billion government grant for FY2025, down from $6.35 billion the year before.

Since it was set up in 1960, HDB has received $66.23 billion in grants.