Ageing condos in Singapore hit by failing infrastructure, inadequate sinking funds

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In 2024, when two out of three lifts in his block at Fernwood Towers broke down, Mr Haider Manasawala had to carry his suitcase down 21 storeys to catch a flight.
"Only one lift was operating and it was taking forever to come. I didn't have a choice," said Mr Haider, a regional chief financial officer with a US multinational firm.
On other occasions, all three ageing lifts failed, forcing Mr Haider to climb the stairs to get home.
Fernwood Towers, a 31-year-old freehold development near Siglap, has 11 lifts across four residential blocks. But despite frequent lift breakdowns, which started in 2021, the management corporation strata title (MCST) found it hard to get owners' support to raise funds and replace them.
Fernwood Towers is among a growing number of condominium developments grappling with deteriorating infrastructure and insufficient sinking funds to carry out major repair and replacement works. This problem could worsen as more developments cross the 30-year mark, said industry experts.
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.
In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc, said Ms Wong Shanting, ERA Singapore's head of research and market intelligence.
Industry experts told The Straits Times that common problems in ageing condos include lift breakdowns, waterproofing failures and outdated electrical systems - often due to key infrastructure being past its intended lifespan.
As condominiums get older, it becomes harder and more expensive to keep their systems and structures safe, working well and meeting regulations.
Regular repairs, replacements or upgrades are often needed, and the condo must have enough funds to carry out these works, said Ms Winnie Wong, senior managing director of property management at Savills Singapore.
When there is not enough money in the sinking fund, the MCST may ask owners to pay special levies. But these requests often face resistance from owners who cannot or do not want to pay large lump sums.
This can lead to a deadlock at the annual or extraordinary general meetings, delaying necessary repairs or upgrades, added Ms Wong.
In recent months, the Building and Construction Authority (BCA) has conducted multiple rounds of discussions with MCSTs and managing agents to better understand the challenges facing ageing strata-titled properties.
When contacted for comment, a BCA spokesman said the authority "regularly engages MCSTs and managing agents to promote good practices in the management and maintenance of their estates".
BCA did not directly respond to questions on whether the Building Maintenance and Strata Management Act, which sets out laws for the management and maintenance of strata-titled properties, would be reviewed or if new policy measures are being considered for older developments.
Experts agree that the core issue lies in the longstanding practice of under-collecting sinking and maintenance funds, both of which are essential for long-term capital works.
Many MCSTs were established decades ago with sinking fund contributions that were set too low and have not kept up with inflation or rising repair costs, said Ms Wong of Savills.
"Many (residents) feel that the sinking fund is a levy for the future use of the development," added a spokesman from the Association of Strata Managers (ASM), a national association that represents MCST managing agents in Singapore.
"This shortfall makes it difficult for councils to prioritise major life-cycle costs, especially for critical infrastructure such as lifts. In the absence of sufficient reserves, MCSTs often resort to imposing large special levies, which may impose financial hardship on some subsidiary proprietors and strain community relations."
The spokesman added that smaller developments face disproportionate financial pressures, as costs are spread across fewer units.
In addition, some owners prioritise long-term upkeep while others are more focused on investment yields from their properties, further complicating decision-making.
Ms Wong Shanting from ERA noted that some owners, especially those who hope for a collective sale, prefer to defer maintenance to avoid spending more. But the reality is that only a minority of developments successfully go en bloc, she said.
Ms Wong of Savills also noted how some MCST councils postpone non-urgent work to avoid burdening owners, especially retirees, creating a reactive maintenance culture instead of a preventive one.
A spokesman from real estate services firm Chambers International said MCST councils are often made up of residents, and not all of them would have the financial and technical knowledge needed to manage a development over its lifespan.
In the Fernwood Towers case, Mr Haider was voted in as chairman of the MCST council in 2023. He managed to secure a mandate to raise a special levy of $1.7 million from 216 units for a full lift overhaul, on top of the regular management and sinking fund contributions.
Owners had the option to pay the levy in instalments over 24 months, with each household paying an average of $320 per month. The amount charged to each household depended on the size of their units.
At Sanctuary Green, a 522-unit, 21-year-old leasehold condominium in Tanjong Rhu, council chairman Ashoketaru Sengupta recently led a successful push to raise both the sinking and management funds at the annual general meeting in July.
To build support, he and his team presented data to residents and explained the estate's current and future needs, including upcoming capital works.
"Whatever we do must be data-driven... it has to be a combination of logical arguments based on data," said Mr Ashoketaru.
The ASM and some managing agents suggested that the Building Maintenance and Strata Management Act should be amended to set minimum recommended sinking fund contributions or mandatory technical audits when buildings reach certain ages, to guide MCSTs in their long-term planning.
Mr Haider said: "Older estates could benefit from policies that promote robust sinking fund reserves and encourage owners to proactively maintain and upgrade their properties. This would enhance liveability and preserve asset value."
The ASM also urges conducting public education so property owners better understand the need for sinking fund top-ups and long-term capital planning as their estates age.
"Many of the HDB estates are far older than the condos. It will be helpful for the Government to share how they have managed those estates. There are lessons we can learn from them," said Mr Ashoketaru.