HDB suffers S$2b deficit

[zcf]

Upgrading activities (lift upgrade or what?)

The biggest contributor was the increase in the number of flats offered for sale ($1.553 million) and higher construction cost, said Mr Tay. This was followed by upgrading activity ($696 million) and rental flat activity ($150 million)​

Unless it openly show us the book, otherwise all these can be manipulated into what they wish. like they can increase the land cost, service charges, or other cost exponentially. In the end it's the left pocket into right pocket.

Just wonder, is there actually any audit firm for the govn or not?

 

[iMac08]

This is a *&(*&W(*&$&^$*$(#&*#$ piece of crap. Mah shld get run over by tanks,mrt trains or cabbies man...

 

[sabaisabai]

I think I've figured it out. Let's say it costs 100k to build a flat. The market price is 300k, but HDB sell the flat for 200k. Somewhere along the line HDB needs to buy the flat from the govt at 300k, which is then countered with a subsidy of 100k. Therefore before subsidy the HDB has lost 100k on that flat. Something like that. I'd love to see the actual calculations..

 

[Canonised]

been to the HDB Hub?..... high class building ....:think:

 

[La Fontaine]

I think I've figured it out. Let's say it costs 100k to build a flat. The market price is 300k, but HDB sell the flat for 200k. Somewhere along the line HDB needs to buy the flat from the govt at 300k, which is then countered with a subsidy of 100k. Therefore before subsidy the HDB has lost 100k on that flat. Something like that. I'd love to see the actual calculations..

The correct mechanism goes like this:
HDB pays for the land at market rate like private developers who tender for land. Then, HDB will built the flats under different schemes like BTO, SERS etc. Apart from just the building cost, there are the other cost like carparks, landscapes, roads, utilities etc.

Well, you might wanna to think that it is a matter of right pocket goes to left pocket. Or, viewed as a government accounting exercise, sort of a paper loss.

 

[contaxable]

Somewhere up the food chain, a big company is losing money big time. Do you guys really need to understand more? Its all economics. Buy cheap, sell high, sell cheap buy more.:bsmilie:

 

[Virgo]

Another excuse to increasing HDB flats selling price.

 

[CYRN]

The correct mechanism goes like this:
HDB pays for the land at market rate like private developers who tender for land. Then, HDB will built the flats under different schemes like BTO, SERS etc. Apart from just the building cost, there are the other cost like carparks, landscapes, roads, utilities etc.

Well, you might wanna to think that it is a matter of right pocket goes to left pocket. Or, viewed as a government accounting exercise, sort of a paper loss.

I believe this is a more "accurate pricing" used.

However, until the book is open to public scrutiny and their accounting methods publicized. I take the 2b figure with a huge dose of salt.

 

[sinned79]

Another excuse to increasing HDB flats selling price.

more like an excuse... to avoid ppl saying HDB is profitting from using low cost to build HDB and sell it at a much bigger profit.

 

[CYRN]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1015349/1/.html

HDB suffers S$2b deficit

By Joanne Chan, Channel NewsAsia | Posted: 02 November 2009 1743 hrs

The figure is more than double the loss reported in the previous financial year.

HDB said the huge deficit for the financial year ending March was due mainly to more flats being sold. These flats are highly subsidised by the government. Higher construction costs also led to the large deficit.


- CNA/ir

From the Financial report iteself....

SEGMENTAL RESULTS

The Home ownership segment recorded a higher deficit of $1,553 million as compared with $1,006 million last year. The number
of flats sold under the home ownership scheme this year was 4,738, which was 7,253 less than last year. The higher deficit
was mainly attributable to higher provision for foreseeable loss for properties under development, as more new building contracts
were awarded this year.


:nono::nono::nono:


edit* for those interested in the FR... it's linked below.

http://www.hdb.gov.sg/fi10/fi10221p.nsf/0/d4a0f107613b79944825766200236310/$FILE/Financial%20Report%202009.pdf

 

[CYRN]

Another thing to note...

FINANCING OF PUBLIC HOUSING

The HDB’s annual deficit is fully covered by government grant. In addition, the HDB receives government grant to preserve the capital gains attributable to past governments on disposal of the protected assets.

The cumulative government grant to the HDB since its establishment in 1960 amounted to $19,281 million.

Wow! a 10% in the last 1 year compared to the 49 years. :bigeyes:

 

[Canonised]

This is a *&(*&W(*&$&^$*$(#&*#$ piece of crap. Mah shld get run over by tanks,mrt trains or cabbies man...

basket, why you beh song Mah hor.... last time at transport you ^*&%#^*, now HDB you oso @$&&*^%*( :dunno:
who knows next time he becomes the next PM hor .....

 

[jawzsg]

Not stupid, juz hands tied. They can slap u left right center & u can't do anything about it :thumbsd:

CAN CAN !!!... some call it a "Voting Slip" ...few years occur one time I heard.

Upgrading activities (lift upgrade or what?)


Unless it openly show us the book, otherwise all these can be manipulated into what they wish. like they can increase the land cost, service charges, or other cost exponentially. In the end it's the left pocket into right pocket.

Just wonder, is there actually any audit firm for the govn or not?

Err.. think got.. it's was a "Ka Kee Nang & Pai Si Boh Siang Kang" ..or something like that..

This is a *&(*&W(*&$&^$*$(#&*#$ piece of crap. Mah shld get run over by tanks,mrt trains or cabbies man...

:sweat:.. you missed out the aircraft...

 

[jawzsg]

hmmm... S$2b deficit over some 8,000 flats...which average $250,000 per unit... tsk..tsk..tsk.. fWah.. can buy semi-d and bunglow from our neighbour reh.... I think freehold or long term lease hold reh......:sweat::sweat:

Howxiao, Dubious & Bogus report lor...this one....tsk..tsk..tsk

 

[tenpa]

hmmm... S$2b deficit over some 8,000 flats...which average $250,000 per unit... tsk..tsk..tsk.. fWah.. can buy semi-d and bunglow from our neighbour reh.... I think freehold or long term lease hold reh......:sweat::sweat:

Howxiao, Dubious & Bogus report lor...this one....tsk..tsk..tsk

Bro... rule number one> They are always right :thumbsd:
rule number two> Even if they are wrong rule number one will always apply.... ;(

 

[Parka]

Someone who is an accountant should really go analyze the numbers from their income statement and balance sheet.

 

[iNotion]

Wah lao!! U believe ah? Read an article from Straits Times last yr, some construction engineer wrote in to say why HDB flats so exp. He broke down the cost to show how much its to build a block of flat & HDB actually earns more than 2x the cost by selling it $220k per 4 room. Mind u this price is for an ulu estate, those matured redevelop estate is above 400k.

On top of that profit, they loan u money & u pay interest for 20 - 30yrs, another big income for them. My 3 rm flat 11yrs loan already choked up 50k interest liao. :complain:

Mr Mah still say "U people have to be realistic, HDB flats r heavily subsidised by govt...." If anyone rem the recent news not too long ago :ipuke:

Well said!
Nowadays, i seldom read or watch the news from our local sources.
There are really idiots living in Singapore who believed everything, the garmen said, even things that doesn't make sense...

 

[Royale With Cheese]

Bro... rule number one> They are always right :thumbsd:
rule number two> Even if they are wrong rule number one will always apply.... ;(

hahahaha! True...

Well, I dont think the books will be transparent anytime soon really, never have been...

Of course my statement is wrong because rule number 2 is in application :sweat:

 

[legiz]

does this hint that HDB prices to rocket further?

 

[lchoong78]

does this hint that HDB prices to rocket further?

yes. I can predict that they will use this excuse to increase the HDB prices.