# Singapore Housing Board Deficit Shrinks to $4.7 Billion HDB reports reduced financial shortfall as construction and home ownership activities continue at scale. - **Source:** [The Straits Times – Singapore](https://www.straitstimes.com/singapore) - **Published:** 2026-11-11 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/6c0883c9-4f50-4dcd-82f5-b87896c6e628 ## Deficit Reduction Trends The Housing and Development Board recorded a net deficit of $4.7 billion for the 2025 financial year. This figure represents a notable decline from the $6.34 billion deficit reported in the previous fiscal year. The board relies on government grants to cover these operational shortfalls, which are inherent to its public mandate. ## Core Activity Financials Core activities, primarily the construction and sale of Build-To-Order flats, generated a $5.13 billion shortfall. This was partially mitigated by a $419 million surplus derived from managing commercial properties and land assets. The board continues to balance its public housing mission against the rising costs of large-scale residential infrastructure development projects. ## Home Ownership Costs Home ownership responsibilities accounted for $4 billion of the total deficit, down from $5.51 billion in 2024. Within this segment, $1.75 billion stemmed from flat sales, while $1.31 billion was allocated for foreseeable losses on units currently under construction. Additionally, $711 million was disbursed as CPF housing grants to eligible buyers. ## Construction and Delivery HDB completed 15,417 flats during the 2025 financial year, a decrease from the 20,294 units finished in 2024. However, the pipeline remains robust with 100,122 flats currently under construction. The board successfully issued keys to 19,254 households, reflecting an increase from the 17,633 households that received keys in the prior year. ## Upgrading Program Expenditure Deficits from upgrading programs, including the Home Improvement Programme and Lift Upgrading Programme, dropped to $279 million from $532 million. This reduction is attributed to lower expenditure as several projects neared completion. Other initiatives remain in early stages, meaning spending is expected to ramp up in future financial reporting periods accordingly. ## Ancillary Function Expenses Residential ancillary functions, such as lease administration and carpark management, resulted in a $673 million deficit, rising from $570 million in 2024. This increase was driven by higher spending on electrical supply upgrades for older housing blocks. These improvements are necessary to accommodate the growing electricity demands of current HDB residents. ## Rental Flat Operations The deficit from rental flat operations reached $171 million in 2025, compared to $159 million in the previous year. While rental operations and ancillary functions require significant funding, the board utilizes surpluses from commercial property management to offset these costs. This cross-subsidization strategy remains a core component of the board's financial model. ## Historical Funding Context To finance the 2025 deficit, the board received a $4.73 billion government grant, significantly lower than the $6.35 billion provided in 2024. Since its inception in 1960, the Housing Board has received a cumulative total of $66.23 billion in government grants to support its ongoing mission of providing affordable public housing. ## Sources covering this story - https://www.straitstimes.com/singapore/housing/hdb-deficit-narrows-to-4-7-billion-down-from-6-34-billion-a-year-ago — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._