Does HDB profit from the sale of public housing flats?
No, the allegations about profiting from the public housing programme have no basis. There are published facts and figures to show that HDB does not profit from the sale of public housing.
HDB is committed to providing affordable housing. In implementing the Home Ownership Programme, HDB incurs deficits every financial year. That is because the amount collected from the sale of flats is less than the total development cost, which includes construction and land costs, and CPF housing grants disbursed to eligible home buyers.
HDB also incurs deficits in its other activities, such as upgrading programmes and the provision of rental flats. These are actual deficits that are funded by Government grants.
HDB’s deficits, including key components of income and expenses, are reflected in its audited financial statements published each year. These statements are available publicly, and can be easily accessed from the HDB InfoWEB and on the Singapore Exchange website.
HDB’s financial statements are prepared in accordance with the Singapore Statutory Board Financial Reporting Standards, and are audited by independent and established auditing firms.
In FY 2015/16, HDB incurred a deficit of $1,179 million on its Homeownership Programme. The average deficit was about $1,620 million a year in the last 3 years (FY 2013 - 2016).
HDB incurred an overall deficit before government grant of $1,639 million in FY 2015/16. The average deficit before government grant was about $1,877 million in the last 3 years (FY 2013 - 2016).