HDB spent $1.5 billion on ramping up housing supply
The Housing and Development Board (HDB) chalked up a net deficit of $797 million in the last financial year (FY2012/2013), which saw an 80% increase from $443 million the year before. This was calculated before a $1.04 billion government grant and taxation were factored in in the same financial year.
In its annual report released on 16 Oct 2013, HDB said the higher deficit stemmed from a larger deficit for its Home Ownership segment. The category encompasses the development and sale of flats to eligible buyers under the various home ownership schemes for public housing.
The Centrepoint mall on the Orchard Road shopping strip managed by Singapore-based REIT Frasers Centrepoint Trust.
Singapore's REITs, already taking a hit from rising interest rates and tapering expectations, may have further room to fall, possibly even crimping the city-state's initial public offering (IPO) pipeline, analysts say.
As persistent low rates and easy money from quantitative easing spurred investors to chase anything paying a yield, Singapore's REITs' payouts of sometimes more than 7 percent were popular, especially when coupled with the prospect that appreciation of the local currency could add a fillip to returns.
