Gems Ville - HDB’s deficit nearly doubles to $4.367b amid sharp increase in number of BTO projects started

SINGAPORE - The Housing Council's deficit rose to a record $4.367 billion in the financial year ended March 31, about 86% higher than the previous year's $2.346 billion. Much of that — $3.85 billion — was due to projected losses on apartments under construction, the disbursement of housing subsidies by the Central Supplier Fund, and gross loss on sales. sales number. HDB said the apartment was subsidized under the homeownership program on Monday.

Programmatic losses almost doubled from $1.95 billion in the previous year, as an additional 66% of Build to Order (BTO) projects begin development in 2021 and more apartments were sold, leading to more subsidies, HDB added.

Besides, Gems Ville is a freely owned condominium with common facilities, located in District 14 along Lorong 13 Geylang. Possessing a modern beauty, the apartment is expected to be completed in 2025, attracting attention from the surrounding urban area with its open facade. HDB held a press conference with the media on Friday ahead of the release of its annual report on Monday, unlike in previous years when only the report was released. This stems from growing concern about housing affordability, with home prices rising over the past two years.

Gems Ville with the facade

In September, The Alternative View Facebook page released an adjustment under the fake news law after implying that HDB profited from the sale of apartments at the Ang Mo Kio BTO project, in which one 5-room apartments cost up to 877,000 USD. Addressing this issue in Parliament, National Development Secretary Desmond Lee said the total damage of the project amounted to about $270 million. He added that the claims that HDB profits from the development and sale of BTO apartments are not true.

Since then, the Government has also issued remedial directives against former GIC chief economist Yeoh Lam Keong and The Online Citizen website for false and misleading statements about reserves and funds. HDB Singapore's past losses. On Monday, Mr. Lee said the HDB's substantial shortfall under the homeownership program showed "in practical terms" the Government's commitment to ensuring public housing remains affordable. affordable, accessible and inclusive.

Gems Ville is a new project at 8 Lorong 13 Geylang, 389901 thtat has the site area at 7,868 sqft. At the meeting, HDB CEO Tan Meng Dui said the record deficit was largely due to subsidies apply to new apartments, the disbursement of housing subsidies, multi-apartment. Households began to grow and construction costs increased due to the Covid-19 pandemic.

He said BTO apartments are not priced based on HDB's total development costs, including construction and land costs. Instead, HDB determines the market value of new units from nearby comparable resale units and applies a substantial subsidy to keep them affordable based on income. family. families and the prices of the different types of apartments offered, he added.

The HDB says the current house price-to-income ratio for BTO units offered in non-adult properties is around five or less, meaning home prices are five times higher. annual household income or less. The Mortgage Service Rate (MSR) for most new HDB homebuyers is around 25% or less, meaning they spend a quarter of their monthly income or less on their mortgage. I. The Straits Times has asked HDB to provide corresponding figures for BTO apartments in adult housing. Under current regulations, the MSR is capped at 30% of the borrower's gross monthly income.

Gems Ville Residences is undoubtedly a small development. The residential project will comprise of TBA residential units that range from 1 to 3-bedroom apartments. Gems Ville's floor plans will be released soon! Register for free VVIP to get the latest updates for the development.

Gems Ville - HDB’s deficit nearly doubles to $4.367b

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