Forum: Timely to look at maintenance strategies for ageing condos now

The Association of Strata Managers (ASM) refers to the article “Ageing condos could get help to fix estate problems, maintain sinking funds, under new proposal” (March 4).

As the professional body for strata managing agents, ASM supports initiatives that strengthen long-term financial planning and sustainability within strata developments. Adequate and well-planned sinking funds are essential to ensure that cyclical building works, mechanical and electrical works, structural repairs and regulatory improvements can be carried out in a timely and responsible manner as developments age.

Singapore’s strata landscape is maturing. As highlighted in the article, more than 1,000 of the approximately 3,750 strata developments are now 30 years old or older. Many of these developments face rising maintenance demands, including lift replacement, facade repairs, and upgrading of ageing infrastructure. When sinking funds are insufficient, developments often have little choice but to impose special levies on owners, which can be financially burdensome.

The challenge may become more pronounced as many residents in older developments are themselves ageing or retired, making sudden large levies difficult to absorb. The situation is particularly acute in smaller developments. Roughly 35 per cent to 40 per cent of strata developments in Singapore have fewer than 100 units, meaning the cost of major works must be shared among a smaller group of stakeholders, resulting in higher individual contributions.

Without sufficient accumulated sinking funds, the reality of elderly or disabled residents having to use the staircases when the lifts are not operable would be a harsh reality. Time is of the essence, if we do not wish to see such realities overwhelm those living in such communities.

ASM also supports the proposed measures to lower consent thresholds for essential works, introduce caps on proxy voting and mandate training for council members. These measures can help reduce decision-making gridlock, prevent disproportionate voting influence and ensure that council members are better equipped to discharge their duties responsibly.

Professional strata managers play an important role in advising councils on forward maintenance planning, fund adequacy reviews and governance best practices. Strengthening professional standards and continuing education across the industry will complement the Government’s regulatory initiatives and support better decision-making at the management corporation level.

ASM stands ready to collaborate with the Building and Construction Authority and other stakeholders to support the practical implementation of these measures.

Sound financial planning for building upkeep will be essential to ensuring that Singapore’s ageing strata developments remain safe, well-maintained and sustainable in the years ahead.

Annie Ooi
Secretariat
Association of Strata Managers