FINANCIAL PERFORMANCE OF CONDOMINIUMS IN SINGAPORE

Abstract

Condominium living in Singapore has gained popularity with both locals and foreigners over the years. As the maintenance and management of Condominiums, being the private sector, does not fall within the scope of the government, no other forms of financial incentives or assistance was extended to the private sector's maintenance related activities. Hence, such main responsibility is entrusted on the Management Corporation of the respective condominium, which is made up all the strata unit-owners. The Land Titles Strata Act stipulates the need for owners of the strata-titled buildings to set aside both maintenance and sinking funds for building maintenance. This study seeks to identify the income sources, trends of condominiums' expenditure; as well as review the financial health and financial performance of the condominiums' annual accounts in Singapore. The period of analysis is for the period between 1998 to 2002. The findings from this study will give an insight into whether the objectives of proper maintenance and management has been achieved by the Management Corporations.