PROPERTY MANAGEMENT IN HONG KONG : AN EVALUATION

Abstract

The effective management of property is of great importance to the maintenance of a high-quality urban environment. As one of the most densely populated countries in the world and with a property stock valued at over HK$9,800 billion, estimated as at 1996, the significance of effective property management in Hong Kong cannot be over-emphasised. This study attempts to evaluate the standard of property management in Hong Kong. A brief history of the development of property management in Hong Kong is first discussed. This is followed by a review of current property management practices in Hong Kong. In particular, the Deed of Mutual Covenant and the Multi-storey Buildings (Owners Incorporation) Ordinance, which are the main legislations governing property management in Hong Kong, are analysed in detail. Problems concerning the management of properties such as owners' unhappiness with management fees and service levels, and property managers' inability to get owners to observe common regulations are also highlighted. The key solution to many of the problems appears to be a well-drafted Deed of Mutual Covenant (DMC). One possible model to emulate would be the Land Titles (Strata) Act adopted in Singapore where one statutory document alone governs all strata titled properties in the country, hence promoting uniformity, fairness, transparency and certainty in property management. Also in Singapore, an independent body is established that settles property management disputes. The study concludes with recommendations for future work which include learning from legislations of other developed countries to refine that of Hong Kong.