Latest news with #BuildingMaintenanceandStrataManagementAct
New Paper
a day ago
- Business
- New Paper
'We need an audit system': Ageing condos call for stronger management rules, but not heavier burdens
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 condo manager Abdul Shazwan, MCST council treasurer Nallan Chakravarti Raghava, professional engineer and consultant for the MCST Patrick Foong Keng Yuen and MCST council chairman B.M.R Williams. 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."
Straits Times
2 days ago
- Business
- Straits Times
Owners call for stronger management rules in ageing condos, but seek to avoid being overburdened
Sign up now: Get ST's newsletters delivered to your inbox 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.'
New Paper
3 days ago
- Business
- New Paper
Ageing condos in Singapore hit by failing infrastructure, inadequate sinking funds
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.
Straits Times
5 days ago
- Business
- Straits Times
Forum: Well-managed sinking funds fulfil critical role
Sign up now: Get ST's newsletters delivered to your inbox Sinking funds are key financial safeguards for Singapore's strata-titled properties, ensuring long-term structural sustainability and value preservation ( Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds , Aug 7). The Building Maintenance and Strata Management Act (BMSMA) mandates that all management corporations (MCSTs) must establish and maintain sinking funds for major repairs and budget for long-term sustainability. These funds are legally segregated from management funds used for regular maintenance and cannot be used without the approval of a general meeting. Sinking funds cover capital expenditures beyond routine maintenance, including lift replacements and major upgrades, structural repairs and mandatory seven-year cyclical repairs and repainting programmes, replacement of electrical systems, sanitary/plumbing systems and waterproofing. By funding cyclical maintenance, sinking funds prevent the deterioration seen in ageing condos, thereby protecting owners' asset values in a sustainable manner. After the MCST constitution and the new management council taking over maintenance from the owner/developer at the first annual general meeting, one of the key agendas is to decide on the appropriate amount of sinking fund, alongside the computed management fund, to be collected quarterly. There are about 3,700 active MCSTs constituted in Singapore today, with more new condos in the pipeline. The proper computation and collection of sinking funds cannot be treated lightly. Many older MCSTs set contributions decades ago without inflation adjustments. Repair/replacement costs outpace reserves when emergency repair on major items or replacement is needed, and owners/subsidiary proprietors will face a big special levy to be paid up within a short term. Top stories Swipe. Select. Stay informed. World Trump seizes control of Washington police, deploys National Guard Business Lower-wage retail workers to receive up to 6% pay bump from Sept 1 Singapore Keppel to sell M1's telco business to Simba for $1.43b, says deal expected to benefit consumers Singapore ST Explains: Who owns Simba, the company that is buying M1? Singapore Telco price undercutting expected to subside after sale of M1 to Simba: Analysts Singapore ST Explains: What is Vers and which HDB estates could it be rolled out in? Singapore For Vers to work, compensation should account for varied needs of HDB flat owners: Observers Singapore At least $2m lost in S'pore to govt official impersonation scams involving cryptocurrency in Q1 After taking over the management of the MCST, the management council, at the first repair and repainting programme approximately seven years from when the building obtained its Temporary Occupation Permit, should conduct a technical audit and check if sinking funds collected thus far can achieve the desired objectives. This technical audit should be done cyclically, and the proper amount of sinking fund to be collected should be adjusted accordingly. MCSTs should also work with industry professional associations and conduct workshops on life-cycle costing, BMSMA compliance, and long-term value preservation strategies to educate the subsidiary proprietors periodically. The management councils should also include finance-savvy residents. Sinking fund systems represent a practical balance between statutory requirement and MCST autonomy. While the BMSMA deliberately avoids one-size-fits-all contribution percentages, this flexibility demands greater owner engagement. Well-managed sinking funds transform ageing liabilities into value-preservation tools, ensuring that condominiums remain safe, functional, and financially viable across generations. As Singapore's property landscape matures, proactive fund management will increasingly separate thriving communities from those facing infrastructural obsolescence. Dennis Tan President MCST Association of Singapore
AsiaOne
08-08-2025
- Business
- AsiaOne
Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds, Singapore News
SINGAPORE — In 2024, when two out of three lifts in his block at Fernwood Towers broke down, 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 Haider, a regional chief financial officer with a US multinational firm. On other occasions, all three ageing lifts failed, forcing 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, Haider was voted in as chairman of the MCST council in 2023. It 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. "With the new lifts and other enhancements, our estate is now better maintained, and our financial reserves have significantly improved, although this is work in progress," said Haider. 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 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. 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 Ashoketaru. [[nid:720798]] This article was first published in The Straits Times . Permission required for reproduction.
