The housing board incurred a higher net deficit during the last financial year, amid its ramped up building programme.
HDB’s latest annual report showed that net deficit before taking into account the government grant in the year ended March 2013, rose by almost 80 percent to S$797 million from S$443 million in the previous year.
The higher deficit was due mainly to higher deficit in the Home Ownership segment, which comprises mainly the loss on the sale of flats, the net provision for foreseeable loss for flats under development and disbursement of CPF housing grants.
Meanwhile, there were around 72,737 flats constructed last year, or up 23.8 percent from the previous year’s 58,731.
However, the number of flats completed fell by 35.7 percent to 11,541 units last year from 17,947 the year before.
Dr Cheong Koon Hean, Chief Executive Officer of HDB, said: “The challenge ahead is to ensure smooth completion and delivery of the new flats, given the large volume and resources involved.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com