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Owners Call for Stronger Management Rules in Ageing Condos but Seek to Avoid Being Overburdened

Owners Call for Stronger Management Rules in Ageing Condos, but Seek to Avoid Being Overburdened

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. The sinking fund can’t cover the repair costs.

Residents say these problems could have been addressed earlier with guidance from qualified professionals and proper financial planning. News that the Government is reviewing the Building Maintenance and Strata Management Act is therefore welcome.

Government Review Underway

The Building and Construction Authority (BCA) has been holding discussions with MCSTs, managing agents, and industry groups to understand challenges and gather best practices. Feedback from these focus groups will inform the ongoing review of the Act, a BCA spokesperson confirmed.

Ageing Infrastructure and Funding Gaps

Real estate agency ERA estimates there are 2,703 condo developments in Singapore, with 836 (or 31%) at least 30 years old. That figure could rise to 1,160 by 2035, assuming no en bloc sales.

At Lakeview Estate, a 48-year-old development in Upper Thomson, council chairman Mr B.M.R. Williams said: “We need audits and qualified people to certify safety and essential services once an estate reaches a certain age.”

Challenges include:

  • Many residents are retirees
  • 25% of units are rented out
  • Poor AGM turnout – only 17 attended in April 2025
  • High costs: $1.8 million to replace 12 lifts; $300K–$400K for concrete repairs
  • Sinking fund holds less than $1 million

The council opted to recondition all lifts for about $600,000 instead, after seeking professional advice.

Calls for Policy Change

Some residents and industry professionals have proposed:

  • Mandatory training and tenure limits for council members
  • Accreditation for managing agents
  • Clearer rules to distinguish between maintenance and improvement works
  • Minimum sinking fund contributions — e.g. 20%–30% of ideal levels
  • Government-backed loans for major repairs
  • Means-tested assistance for special levies

Ms Tan, 66, from Central Green Condominium, asked: “Should funds go to a new playground or lift upgrades? Clearer rules will help MCSTs prioritise.”

Diverging Views Among Residents

Mr Augustine Cheah, a former MCST member, noted that investors and owner-occupiers often have different expectations. “Views differ on what counts as acceptable quality or necessary improvements,” he said.

Lawyer Daniel Chen of Lee & Lee questioned the practicality of a universal minimum sinking fund rate due to differences in estate age and size. He suggested that works deemed critical — such as repainting every seven years — could be legally mandated instead.

Accessibility and Long-Term Planning

At Lagoon View, a 48-year-old condo, resident Timothy Jude Fu-Tien Wimala said better access to public transport is needed for the elderly. “The planning regime back then didn’t account for this,” he said.

The Government will also study how the BCA’s Accessibility Fund can be enhanced. The fund provides grants for retrofitting buildings with features like ramps and accessible car parks.

Collective Sales: A Last Resort

Ms Winnie Wong from Savills said only a small number of ageing condos have gone en bloc in the past decade. Yet some, like Loyang Valley, are trying again.

Mr Terence Lian from Huttons Asia, the appointed agent for Loyang Valley’s collective sale, said that while the Act review doesn’t address lease decay directly, many residents make the connection between ageing infrastructure and en bloc viability.

“If the sale doesn’t go through, I may need to fork out more to keep the place going,” said Mr Jaya, 78, a long-time resident.

 

Credits: The Straits Times
Published: Aug 15, 2025

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