A STUDY OF THE MAINTENANCE AND MANAGEMENT FEE STRUCTURE FOR STRATA TITLE DEVELOPMENTS IN SINGAPORE

Abstract

In the private housing market,'condominium' type is an important form of housing because of Singapore's scarce land resources. In each of these strata title developments, owners of the strata units are responsible for the maintenance of the common area by paying a monthly maintenance and management fee towards the common fund. Over the years, this financial obligation has posed problems ranging from default in the monthly payments, complaints about the unsatisfactory state of maintenance of the common areas, to the many interests involved, namely those of the developer, management corporation, subsidiary proprietor and the State through the Building Administration Unit. In an attempt to provide solutions to these problems, this dissertation analyses the historical data obtained to determine the monthly charges payable, given factors such as size of development, area of unit and the range of facilities. The aim is to give potential purchasers and other interested parties an indication of their likely liabilities of the costs of maintaining the common area. The study also covers an analysis of the various cost items found in the accounts to identify which are the ones that take up greater proportion of the funds. Standards are set for the important items identified which in turn provides a basis for the parties interested to measure the actual expenditure incurred in their respective development against these standards set. This is to ensure that there is no wastage of funds used in maintaining the common area or too little funds being used resulting in poor maintenance of the common area. The State has played a part in improving the situation. This dissertation will look into ways which the State has done this and examine what further measures may be undertaken to ameliorate the present situation.