Financial Results

HDB provides Singaporeans with affordable homes and a quality living environment, through its role as the master planner and developer of Singapore’s public housing towns.

To help Singaporeans become home owners, the Government subsidises HDB flats with price discounts for new flats and by offering a variety of housing grants. HDB also offers housing loans at concessionary interest rates to help eligible Singaporeans own homes. For needy Singaporeans, HDB provides heavily subsidised rental flats.

To ensure that HDB towns continue to be renewed and cater to the changing needs of residents, HDB rejuvenates its towns and flats through programmes such as the Remaking Our Heartland (ROH) Programme, Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP), and Lift Upgrading Programme (LUP). In addition, HDB is involved in relevant commercial property development and management to provide a range of amenities and employment opportunities in HDB towns.

To reflect the full spectrum of HDB’s operations, the financial results are presented under ‘Housing’ and ‘Other Activities’ in the audited financial statements. ‘Housing’ consolidates the results of housing programmes implemented. It comprises the Home Ownership, Upgrading, Residential Ancillary Functions, Rental Flats, and Mortgage Financing segments. ‘Other Activities’ comprises the Other Rental and Related Businesses segment, and Agency and Others segment which are commercial in nature.

In Financial Year (FY) 2018/ 2019, HDB incurred a net deficit of $1,986 million, before the government grant, as compared with $1,717 million in FY 2017/ 2018. The net deficit comprised the deficit from the ‘Housing’ activities of $2,448 million, offset by the surplus from the ‘Other Activities’ of $462 million in FY 2018/ 2019.

HDB received a grant of $2,032 million in FY 2018/ 2019 from the Government to finance its deficit, and to protect the reserves of the past governments in accordance with the Constitution of the Republic of Singapore. The retained earnings of HDB as at 31 March 2019 remained at zero after the transfers to the capital gains reserve to protect past reserves.

Housing Results

The Home Ownership segment covers the development and sale of flats to eligible buyers under the various home ownership schemes for public housing. The Home Ownership segment reported a deficit of $1,421 million in FY 2018/ 2019 as compared with $1,383 million in FY 2017/ 2018.

HDB recorded a lower gross loss of $1,316 million for the sales completed (i.e. keys issued to buyers) in FY 2018/ 2019. The number of sales completed in FY 2018/ 2019 was 16,608 units as compared with 26,857 units in FY 2017/ 2018.

The provision for foreseeable loss of $1,234 million that was made in the previous years was released on completion of the sale of flats in FY 2018/ 2019. On the other hand, $812 million of additional foreseeable loss was provided mainly for new building contracts awarded. As a result, there was a net decrease of $422 million in the provision for foreseeable loss.

HDB also disbursed $532 million of CPF housing grants to eligible buyers of resale flats and Executive Condominiums (ECs) in FY 2018/ 2019 as compared with $466 million in FY 2 017/ 2018.

The Upgrading segment reported a deficit of $557 million in FY 2018/ 2019. The programmes are the Home Improvement Programme, Neighbourhood Renewal Programme, and Lift Upgrading Programme for housing estates. The decrease in deficit was due to lower expenditure for the Home Improvement Programme, as compared to last year.

The Residential Ancillary Functions segment includes lease administration, provision and management of ancillary facilities such as car parks in housing estates, and planning and building administration. It reported a deficit of $342 million in FY 2018/ 2019.

The Rental Flats segment recorded a higher deficit of $116 million in FY 2018/ 2019.

The Mortgage Financing segment maintained a deficit of $23 million in FY 2018/ 2019.

Results Of Other Activities

The segment on Other Rental and Related Businesses focuses on the provision, tenancy, and management of commercial properties and land. It reported a lower surplus of $472 million in FY 2018/ 2019, due mainly to the drop in rental income after the transfer of HDB’s industrial properties and land to JTC Corporation on 1 January 2018.

Capital Expenditure

Capital expenditure for the year was $6,552 million. A large proportion of the year’s capital expenditure was incurred for purchases of land and construction of public housing.

Financial Position

As at 31 March 2019, HDB’s total assets amounted to $84,666 million. Loans receivable were $40,392 million. Property, plant and equipment, investment properties, and properties under development and for sale were $40,652 million. These assets accounted for 96% of the total assets.

Capital and reserves stood at $15,231 million as at 31 March 2019. Reserves comprised capital gains reserve of $7,417 million and asset revaluation reserve of $5,350 million.

The loans payable of $64,040 million comprised mainly loans from the Government and bonds.

Financing of Public Housing

HDB’s annual deficit is fully covered by government grant. In addition, HDB receives a government grant to preserve the capital gains attributable to past governments on disposal of the protected assets, in accordance with the Constitution of the Republic of Singapore. The cumulative government grant to HDB since its establishment in 1960 amounted to $33,534 million.

The main loans which finance HDB’s operations comprise:

1. Mortgage financing loans that finance the mortgage loans granted by HDB to purchasers of flats under the public housing schemes. Interest rate and repayment term on loans obtained by HDB from the Government are:


2. Housing development loans that finance the development programmes and operations.
3. Bonds that finance HDB’s development programmes, working capital requirements, and refinancing of existing borrowings. During the year, HDB raised $3.50 billion and redeemed $2.85 billion of unsecured Fixed Rate Notes. Total outstanding Notes under the Medium Term Note Programme was $23.02 billion as at 31 March 2019.