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) and the Neighbourhood Renewal Programme (NRP). 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) 2014/ 2015, HDB incurred a net deficit of $2,018 million, before the government grant, as compared with $1,973 million in FY 2013/ 2014. The net deficit comprised the deficit from the ’Housing’ activities of $2,697 million, offset by the surplus from the ’Other Activities’ of $679 million in FY 2014/ 2015.

HDB received a grant of $2,171 million in FY 2014/ 2015 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 2015 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 $1,753 million in FY 2014/ 2015 as compared with $1,927 million in FY 2013/ 2014.

The number of sales completed (i.e. keys issued to buyers) this year was 21,761 units, which was 8,451 units more than last year. HDB recorded a gross loss of $60 million for the sales completed in FY 2014/ 2015.

The provision for foreseeable loss of $422 million that was made in the previous years was released on completion of the sale of flats in FY 2014/ 2015. On the other hand, $1,918 million of foreseeable loss for properties under development was provided. As a result, there was a net increase of $1,496 million in the provision for foreseeable loss.

HDB also disbursed $137 million in CPF housing grants to eligible buyers of resale flats, Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums (ECs) in FY 2014/ 2015.

The Upgrading segment reported a deficit of $574 million this year. The Home Improvement Programme and Neighbourhood Renewal Programme were extended to more housing areas and more units had benefitted from these programmes.

The Residential ancillary functions segment, which includes lease administration, management of ancillary facilities such as car parks in housing estates, and building resources, reported a higher deficit of $281 million as compared with $157 million last year. This was due to higher expenditure on upgrading of electrical supply to properties, operating fees, and initiatives under the HDB Greenprint.

The Rental flats segment recorded a higher deficit of $67 million this year as there was higher expenditure on repairs and improvement works to rental flats.

The Mortgage financing segment reported a deficit of $31 million in FY 2014/ 2015, a slight increase in deficit as compared with $30 million in FY 2013/ 2014.


The segment on other rental and related businesses focuses on the tenancy and management of commercial and industrial property developments owned by HDB. It reported a surplus of $679 million as compared with $745 million in FY 2013/ 2014.


Capital expenditure for the year was $10,420 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 2015, HDB’s total assets amounted to $85,656 million. Loans receivable were $37,425 million. Property, plant and equipment, investment properties, and properties under development and for sale were $42,862 million. These assets accounted for 94% of the total assets.

Capital and reserves stood at $15,101 million as at 31 March 2015. Reserves comprised capital gains reserve of $7,107 million and asset revaluation reserve of $5,531 million.

The loans payable of $65,989 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 $26,665 million.

The main loans which finance HDB’s operations comprise:

i) 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:


ii) Housing development loans that finance the development programmes and operations. Interest rate is pegged to the DBS Bank Ltd’s prevailing board rate for housing loans.

iii) Bonds that finance HDB’s development programmes, working capital requirements, and refinancing of existing borrowings. During the year, HDB raised $2.68 billion and redeemed $0.8 billion of unsecured Fixed Rate Notes. Total outstanding Notes under the Medium Term Note Programme were $20.54 billion as at 31 March 2015.