([TRE] SDP: In a dialogue session with Singaporeans, Minister for National Development Mr Khaw Boon Wan said that the HDB lost “hundreds of millions” of dollars every year.
This is counter-intuitive to Singaporeans who pay hundreds of thousands of dollars for their flats, many of whom take out huge housing loans which they spend 20 to 30 years to pay off. Much of the mortgage payments are taken from ouir CPF which deplete our retirement funds.
So how is it possible that while Singaporeans pay such large amounts for our flats, HDB reports such large annual losses?
The reason, as Mr Khaw says, is that HDB spends money on items such as “acquisition costs”. However, he doesn’t reveal how much these costs are.
What Mr Khaw means is that HDB buys its land from the Government (see HDB statement here). The land is acquired by the Government at little or no cost. It then sets a price for this land and sells it to the HDB.
So this seems to be a case of the HDB losing money paying the Government. In the end, it is still the Government making all the money.
See on www.tremeritus.com