Choice of property management system for residential strata developments in Singapore

Abstract

Purpose - This study aims to enlighten strata property owners about the importance of choosing the appropriate vehicle for the management of the common property in their strata development. Design/methodology/approach - The research methodology employed for this inquiry is a case study of two residential strata-titled properties. The two were selected on the basis that, although they share certain similar characteristics including age, tenure and locational attributes, each employs different systems of property management. Data were gathered mainly through interviews with the Property Managers and Chairs of the Management Council. Interviews were also carried out with professionals in the real estate industry specializing in property and facilities management. Findings - The study reveals the various factors of which Management Corporations should be mindful when deciding what form of property management vehicle to use. Careful consideration of these factors will result in a decision that not only is cost-effective, but also provides greater efficiency in the management and maintenance of the strata titled development. Practical implications - Careful consideration of the factors revealed in the findings can result in a decision by the Management Corporation, which is cost-effective. Evaluation of the factors will also result in greater efficiency in the management and maintenance of common property in the strata titled development. Originality/value - This is an up-to-date comparison of two property management systems available to strata developments, in the context of the Singapore Land Titles (Strata) Act, which is based on New South Wales' legislation. The information is useful for strata owners and Management Councils in other jurisdictions in that it provides pointers on the choice of a property management system.