The_King Posted October 31, 2022 Share Posted October 31, 2022 SINGAPORE - The Housing Board’s deficit climbed to a record $4.367 billion in the financial year ended March 31, about 86 per cent higher than $2.346 billion the year before. The bulk – $3.85 billion – was due to the expected loss for flats being built, disbursement of Central Provident Fund housing grants and a gross loss on the sale of subsidised flats under the home ownership programme, said HDB on Monday. The loss incurred under the programme is almost double the $1.95 billion in the previous year, as 66 per cent more Build-To-Order (BTO) projects began development in 2021 and more flats were sold, which translates to more subsidies and grants provided to buyers, HDB added. HDB held a media briefing on Friday prior to the release of its annual report on Monday, unlike past years when it simply issued the report. This comes on the back of growing concerns over housing affordability, with home prices increasing in the last two years. In September, Facebook page The Alternative View was issued a correction direction under the fake news law after implying that HDB profits from the sale of flats at an Ang Mo Kio BTO project, where a five-room flat cost up to $877,000. Addressing the matter in Parliament, National Development Minister Desmond Lee said the total loss on the project amounted to about $270 million. Claims that HDB profits from the development and sale of BTO flats are false, he added. Since then, the Government has also issued correction directions to former GIC chief economist Yeoh Lam Keong and The Online Citizen website over false and misleading statements about Singapore’s past reserves and losses made by HDB. On Monday, Mr Lee said HDB’s substantial deficit under its home ownership programme shows “in real terms” the Government’s commitment to ensuring public housing remains affordable, accessible and inclusive. At the briefing, HDB chief executive Tan Meng Dui said the record deficit is largely due to the subsidies applied on new flats, the disbursement of housing grants, more units commencing development and increased construction costs due to the Covid-19 pandemic. He said BTO flats are not priced based on the total development costs incurred by HDB, which comprise construction and land cost. Instead, HDB determines the market value of new flats from comparable resale flats nearby, and applies a significant subsidy to keep them affordable based on household incomes and the pricing of various flat types on offer, he added. The current house price to income ratio for BTO flats offered in non-mature estates is around five or less, said HDB, which means the purchase price is five times the annual household income or less. The mortgage servicing ratio (MSR) for most new flat buyers taking HDB loans is around 25 per cent or less, meaning they spend a quarter or less of their monthly income on their mortgage. The Straits Times has asked HDB for corresponding figures for BTO flats in mature estates. Under current rules, the MSR is capped at 30 per cent of a borrower’s gross monthly income. Of the $3.85 billion deficit incurred under the Home Ownership segment, about $2.262 billion stems from the expected loss for flats being built due to higher construction costs, which has increased by about 30 per cent since the 2019/2020 financial year. HDB said it has largely absorbed these costs. HDB incurred a gross loss of $659 million for the sale of flats, up from $356 million the year before. In 2021, about 15,000 flats were completed and handed over to buyers, up from the 8,124 units the previous year. CPF housing grants amounting to $849 million were disbursed to buyers of HDB resale flats and executive condominiums, compared with $791 million the year before. HDB also incurred a $392 million deficit for upgrading programmes such as the Home Improvement Programme and Lift Upgrading Programme. Another $352 million was spent on works such as carpark improvements and rebuilding drains. Help for home owners, such as the suspension of late payment charges, amounted to $15 million, while rental waivers for shop owners cost $115 million. HDB incurs a deficit every year and receives a grant from the Finance Ministry to cover its deficit. The deficit has grown every year, except in the 2020/2021 financial year when it dropped to $2.34 billion from $2.66 billion the previous year, as the pandemic hampered construction. Mr Tan also gave an update on the backlog of BTO projects delayed by the pandemic, saying the proportion of such projects is around 50 per cent now, down from 80 per cent a year ago. The median waiting time for BTO projects is now between four and 4½ years, slightly down from four to five years at the peak of the pandemic. 3 Link to comment Share on other sites More sharing options...
The_King Posted October 31, 2022 Author Share Posted October 31, 2022 i am a 5000yr old virgin. please believe me 4 Link to comment Share on other sites More sharing options...
ManOfTheHour Posted October 31, 2022 Share Posted October 31, 2022 Can take money from PM and President salary 3 Link to comment Share on other sites More sharing options...
socrates469bc Posted October 31, 2022 Share Posted October 31, 2022 calculate lai calculate qu, the losses from non-'ownership' related activities r slightly ard sgd900m. and how did the deficit from 'ownership' program arise, this article give rise to more questions than answers. as limpeh understand, hdb dont build per se but subcontract most of the building to several main contractors. the contract with main contractors r usually fixed-price with variation for building material cost fluctuation which is inline with commercial practices. so if the deficits r due to building costs fluctuation, then hdb needs to manage the main contractors more efficiently, particularly on building material costs. another question is on 'improvement' works, r the costs being paid out of conservancy charges becos conservancy charges also cover repair & maintenance of mechanical & electrical works. and then there is the question of land valuation for public housing carried out by SLA. in 2019, alrdy got oppo mp asking questions liao but until now, still no answers. https://sg.finance.yahoo.com/news/hdb-paid-2-000psm-land-115717164.html 2 1 Link to comment Share on other sites More sharing options...
XianGe Posted October 31, 2022 Share Posted October 31, 2022 Tis ish the most useless piece of news ever.... 1 2 Link to comment Share on other sites More sharing options...
aaur4man Posted October 31, 2022 Share Posted October 31, 2022 i never see anyone so happy posting losses before scared the whole world dunno 5 Link to comment Share on other sites More sharing options...
Homelander Posted October 31, 2022 Share Posted October 31, 2022 Lol, HDB will file for bankruptcy bo? Talk cock 4 Link to comment Share on other sites More sharing options...
XianGe Posted October 31, 2022 Share Posted October 31, 2022 1 hour ago, Homelander said: Lol, HDB will file for bankruptcy bo? Talk cock Will the CEO step down bo 4 Link to comment Share on other sites More sharing options...
Huat Zai Posted October 31, 2022 Share Posted October 31, 2022 9 hours ago, The_King said: i am a 5000yr old virgin. please believe me Any relation? 4 Official Mugentech Minecraft server: Please see thread in Gamers Link to comment Share on other sites More sharing options...
The_King Posted October 31, 2022 Author Share Posted October 31, 2022 3 minutes ago, Huat Zai said: Any relation? yuck 2 Link to comment Share on other sites More sharing options...
socrates469bc Posted October 31, 2022 Share Posted October 31, 2022 (edited) 8 hours ago, XianGe said: Tis ish the most useless piece of news ever.... 4 hours ago, aaur4man said: i never see anyone so happy posting losses before scared the whole world dunno 2 hours ago, Homelander said: Lol, HDB will file for bankruptcy bo? Talk cock 40 minutes ago, XianGe said: Will the CEO step down bo u all kumgong pappy serfs diam diam, ok?????? u know how much zheng hu via SLA lost out by not selling to private developers or not???????? zheng hu can earn so much more by allowing more retail malls and condos for hnwis, ok??????? wahahahahahahahahahaha Edited October 31, 2022 by socrates469bc 2 Link to comment Share on other sites More sharing options...
Huat Zai Posted October 31, 2022 Share Posted October 31, 2022 3 minutes ago, socrates469bc said: u all kumgong pappy serfs diam diam, ok?????? u know how much zheng hu via SLA lost out by not selling to private developers or not???????? zheng hu can earn so much more by allowing more retail malls and condos for hnwis, ok??????? wahahahahahahahahahaha Moi is going to take your land moi is going to take a partial of your salary every year moi is going to use that to build cheap housing moi is going to rent that back to you for 99 years moi is going to make it a law that, even though it's a rental, you have to pay for maintenance moi is going to tell you that moi is losing money doing all that. 2 Official Mugentech Minecraft server: Please see thread in Gamers Link to comment Share on other sites More sharing options...
socrates469bc Posted October 31, 2022 Share Posted October 31, 2022 1 minute ago, Huat Zai said: Moi is going to take your land moi is going to take a partial of your salary every year moi is going to use that to build cheap housing moi is going to rent that back to you for 99 years moi is going to make it a law that, even though it's a rental, you have to pay for maintenance moi is going to tell you that moi is losing money doing all that. diam diam lah, pappy serf!!!!!!! 3 Link to comment Share on other sites More sharing options...
Homelander Posted November 1, 2022 Share Posted November 1, 2022 12 hours ago, socrates469bc said: diam diam lah, pappy serf!!!!!!! what is serf? 1 Link to comment Share on other sites More sharing options...
socrates469bc Posted November 1, 2022 Share Posted November 1, 2022 1 hour ago, Homelander said: what is serf? song bo, pappy serf?????? wahahahahahahahahahahahaha 1 1 Link to comment Share on other sites More sharing options...
The_King Posted November 1, 2022 Author Share Posted November 1, 2022 6 hours ago, socrates469bc said: song bo, pappy serf?????? wahahahahahahahahahahahaha Wtf, no wonder your word funny 2 Link to comment Share on other sites More sharing options...
Coffee_O Posted November 2, 2022 Share Posted November 2, 2022 then why i no see HDB retrench staff? i guess cannot cut and need to retain them since most of the 61% KGK are inside. LOL 2 Link to comment Share on other sites More sharing options...
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