Financial Review


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 and industrial 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. These comprise the Home ownership, Upgrading, Rental housing, Residential ancillary functions, and Mortgage financing segments. ‘Other Activities’ comprise Other Rental and Related Business, Agency and Others segments which are commercial in nature.

In Financial Year (FY) 2015/ 2016, HDB incurred a net deficit of $1,639 million, before the government grant, as compared with $2,018 million in FY 2014/ 2015. The net deficit comprised the deficit from the ‘Housing’ activities of $2,252 million, offset by the surplus from the ‘Other Activities’ of $613 million in FY 2015/ 2016.

HDB received a grant of $1,636 million in FY 2015/ 2016 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 2016 remained at zero after the transfers to the capital gains reserve to protect past reserves.


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 $1,179 million in FY 2015/ 2016 as compared with $1,753 million in FY 2014/ 2015.

The number of sales completed (i.e. keys issued to buyers) this year was 19,522 units, which was 2,239 units less than last year. HDB recorded a gross loss of $276 million for the sales completed in FY 2015/ 2016.

The provision for foreseeable loss of $510 million that was made in the previous years was released on completion of the sale of flats in FY 2015/ 2016. On the other hand, $1,174 million of foreseeable loss for properties under development was provided. As a result, there was a net increase of $664 million in the provision for foreseeable loss.

HDB also disbursed $212 million in CPF housing grants to eligible buyers of resale flats and Executive Condominiums (ECs) in FY 2015/ 2016.

The Upgrading segment reported a deficit of $575 million this year. The programmes are the Home Improvement Programme, Neighbourhood Renewal Programme and Lift Upgrading Programme for housing estates.

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 $404 million in FY 2015/ 2016.

The Rental flats segment recorded a deficit of $70 million this year.

The Mortgage financing segment reported a deficit of $33 million in FY 2015/ 2016.


The segment on other rental and related businesses focuses on the provision, tenancy and management of commercial and industrial properties, and land. It reported a surplus of $597 million in FY 2015/ 2016.


Capital expenditure for the year was $10,479 million. A large proportion of the year’s capital expenditure was incurred for purchases of land and construction of public housing.


As at 31 March 2016, HDB’s total assets amounted to $89,622 million. Loans receivable were $38,266 million. Property, plant and equipment, investment properties, and properties under development and for sale were $45,440 million. These assets accounted for 93% of the total assets.

Capital and reserves stood at $15,081 million as at 31 March 2016. Reserves comprised capital gains reserve of $7,112 million and asset revaluation reserve of $5,505 million.

The loans payable of $69,530 million comprised mainly loans from the Government.


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 $28,302 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 $2.2 billion and redeemed $2.62 billion of unsecured Fixed Rate Notes. Total outstanding Notes under the Medium Term Note Programme were $20.12 billion as at 31 March 2016.