Owners call for stronger management rules in ageing condos, but seek to avoid being overburdened

Straits Times

2 days ago

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In recent months, the BCA has conducted focus group discussions with MCSTs, managing agents and industry associations to better understand various perspectives.
SINGAPORE – At one 48-year-old private housing estate in Upper Thomson Road, the signs of deterioration are clear.
Lifts are due for replacement, there is spalling concrete and water seepage in the carpark, and the sinking fund cannot cover repair costs.
But some residents say these issues might have been mitigated with early guidance on technical matters from qualified persons, as well as financial planning support.
The news that the Government is
reviewing the Building Maintenance and Strata Management Act, to better enable management corporation strata titles (MCSTs) to upgrade their developments, is therefore welcome.
In recent months, the Building and Construction Authority (BCA) has conducted focus group discussions with MCSTs, managing agents and industry associations to better understand various perspectives.
These talks also aim to allow participants to share best practices and explore options to allow better support in strengthening self-governance and sustaining the maintenance of their developments, a BCA spokeswoman told The Straits Times.
She added that feedback received will be carefully considered as part of BCA's ongoing review of the Act .
The Act was last amended in 2017. The changes, which took effect in 2019, aimed to strengthen governance, safeguard home owners' interests, and clarify stakeholders' roles and responsibilities.
The review comes as more condominiums struggle with
deteriorating infrastructure and insufficient sinking funds for major repairs.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31 per cent are at least 30 years old.
This number is expected to climb to 1,160 by 2035, assuming none is sold en bloc.
Mr B.M.R Williams, who is MCST council chairman of the 48-year-old Lakeview Estate in Upper Thomson, said: 'We need an audit system in place where qualified people certify the safety and essential services once an estate reaches a certain age. A sub-committee of residents with relevant expertise could also help the council manage the estate.'
But this is difficult to implement when many residents are retirees and a quarter of the 240 units are rented out, said Mr Williams, 83.
At the last annual general meeting in April 2025 , only 17 home owners attended and three people were elected to the council. One quit before the first meeting.
'It is difficult to get people to join the council as it's very challenging to manage an ageing estate like ours,' said Mr Nallan Chakrawarti Raghava, 73, treasurer of the council.
(From left) Lakeview Estate's MCST council chairman B.M.R Williams, professional engineer and consultant for the MCST Patrick Foong Keng Yuen, MCST council treasurer Nallan Chakravarti Raghava, and the condo's manager Abdul Shazwan.
ST PHOTO: NG SOR LUAN
There are a total of 12 lifts in three blocks, each of which serves alternate floors.
When one fails, residents on those floors have no lift access, which is a major inconvenience for the elderly and wheelchair users.
Replacing all the lifts would cost $1.8 million, while fixing spalling concrete in the carpark would cost another $300,000 to $400,000.
The sinking fund currently holds less than $1 million, said Mr Williams.
Given the shortfall, and with a collective sale attempt under way, the council has sought professional advice to recondition all 12 lifts for about $600,000 instead.
At Central Green Condominium, a 30-year-old leasehold development in Tiong Bahru, a resident who wanted to be known only as Ms Tan, 66, called for clearer rules that distinguish between maintenance and improvement works, to help MCSTs prioritise what needs to be done.
'For example, should funds be used to build a new playground over lift upgrading?' said Ms Tan.
In
a letter to The Straits Times' Forum page on Aug 12, Ms Michelle Koh Cheng Joo called for changes such as mandatory training for MCST council members, mandatory accreditation for managing agents, tenure limits for MCST council members, clearer enforcement and audit timelines, and greater resident engagement.
In another letter on Aug 8, Mr Keith Wong proposed targeted financial solutions, including government-backed loans to allow MCSTs to finance major repairs, and means-tested aid to help vulnerable residents pay for special levies.
Mr Augustine Cheah, who has experience on several MCST councils, noted that opinions often diverge between investors and owner-occupiers, and between those willing and able to pay more and those who are not.
'Views will differ on how much to spend on beautifying and improving the estate and even what constitutes an acceptable level of quality for replacement.
'If the sinking fund is severely under-collected, say $1 per share value, when $10 is the calculated level needed for future replacement, perhaps the authorities should set a minimum contribution, such as 20 per cent or 30 per cent of the ideal sinking fund collection rate,' Mr Cheah suggested.
While managing agents often have the expertise to guide councils, some are overruled.
For example, owners may reject proposals for larger sinking funds, viewing them as excessive, said Mr Cheah, who is in his 60s.
There are a total of 12 lifts in three blocks at Lakeview Estate, each of which serves alternate floors. When one fails, it becomes a major inconvenience to the elderly and wheelchair users.
ST PHOTO: NG SOR LUAN
'Sinking fund balances are often contentious, and a minimum required rate of collection will go a long way towards ensuring there's a sufficient balance,' he added.
Ms Winnie Wong, senior managing director of property management at Savills Singapore, noted that many MCSTs' sinking funds are far from sufficient for major works, a problem likely to worsen in the next decade.
She supports legislation or policy to ensure reserves are built up, including setting minimum contributions.
However, lawyer Daniel Chen of Lee & Lee, who specialises in MCST cases, argued that in the light of the self-governing framework of MCSTs, owners should decide funding levels.
He is doubtful about the practicality of having a minimum contribution, given the wide variations in estate size, age, condition and existing reserves.
Instead, he suggested that any works deemed critical can be mandated under the law – as is already the case for repainting, which needs to be done every seven years.
For safety issues, enforcement is already carried out by the relevant agencies because safety is within the ambit of their regulatory oversight and powers, he added.
Rather than mandating extra eligibility requirements for council members, the more effective solution is to require the engagement of relevant qualified persons to manage financial or technical issues, added Mr Chen.
In addition to reviewing the Act, the Government will also study how the BCA's Accessibility Fund can better support MCSTs.
The fund provides grants for building owners to upgrade existing buildings with essential accessibility features, such as ramps, wheelchair-friendly lifts and accessible carpark spaces.
At 48-year-old Lagoon View condominium, resident Timothy Jude Fu-Tien Wimala hopes the Government will fund better access for the elderly to reach the bus stop.
'Older folks, especially those on wheelchairs, are disadvantaged in older estates like ours. The planning regime in those days didn't take such matters into consideration, unlike today,' said Mr Fu Wimala, 44.
Spalling concrete and water seepage can be seen in the car park of Lakeview Estate.
ST PHOTO: NG SOR LUAN
Ms Wong of Savills noted that some MCSTs see collective sales as a last resort if they cannot maintain infrastructure and systems.
But fewer than 10 per cent of older condos have successfully gone en bloc in the past decade.
MCSTs and home owners need to think and invest for the long term with early planning and collective responsibility to ensure enough sinking funds and reserves for sustainable living environments, said Ms Wong.
At Loyang Valley, a condominium in Changi with 56 years remaining on its 99-year lease, some residents are hoping for the collective sale to go through as it is the
third time the condominium is being put up for such a sale .
Mr Terence Lian, head of investment sales at Huttons Asia and the appointed marketing consultant for the collective sale of Loyang Valley, said: 'While the Building Maintenance and Strata Management Act review may not directly address lease decay or (collective) sales, it's understandable that many home owners in older developments are making that connection.'
Said a 78-year-old resident , who wanted to be known as only Mr Jaya: 'I hope the sale goes through this time. If not, I may have to fork out more money to keep the place going.'