{"id":4587,"date":"2022-07-22T03:00:00","date_gmt":"2022-07-21T19:00:00","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=4587"},"modified":"2022-07-22T16:00:00","modified_gmt":"2022-07-22T08:00:00","slug":"condo-management-the-most-underrated-cause-of-selling-at-a-loss-and-how-to-avoid-it","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/condo-management-the-most-underrated-cause-of-selling-at-a-loss-and-how-to-avoid-it\/","title":{"rendered":"Condo management: The most underrated cause of selling at a loss"},"content":{"rendered":"
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There are plenty of reasons you may sell your condo at a loss. A bearish property market, poor global economic situation, selling to relatives because you took leave of your senses, etc (okay we might be exaggerating the last one). But the most overlooked factor is the condo management.<\/p>\n\n\n\n

Here’s why they can be a problem, and how you can spot troublesome management from a mile away.<\/p>\n\n\n\n

A quick rundown on condo management<\/b><\/h2>\n\n\n\n

In Singapore, the Management Corporation Strata Title (MCST) is the management committee of your condo. They are identified by a serial number (e.g. MCST 1111). <\/span><\/p>\n\n\n\n

The initial management committee is chosen by the property developer. After the first Annual General Meeting (AGM), tenants can choose to appoint their own condo management firm, form a management council among strata title holders (i.e. owners), or retain the management committee picked by the developer. <\/span><\/p>\n\n\n\n

Owners of the condo units pay maintenance fees that form the management committee\u2019s budget. This is typically S$500 to S$700 for most condos, but luxury condos may have costs in excess of S$1,000. The smallest (2-bedroom) unit at <\/span>Draycott 8<\/span><\/a>, for example, has a maintenance fee of around S$1,070 per month.<\/span><\/p>\n\n\n

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\"Draycott
Draycott 8, with it’s 16,000 square foot clubhouse, has a maintenance fee in excess of $1,000 a month for a two-bedroom unit.<\/figcaption><\/figure><\/div>\n\n\n

The impact of condo management<\/b><\/h3>\n\n\n\n

The ugly truth is, most condo management committees struggle to manage more than basic maintenance.<\/span><\/p>\n\n\n\n

Condos are one of the hardest building types to manage, even more so than shopping malls. The facilities are shared among hundreds of individual owners, and usage is 24\/7. A condo never closes for the night. Gym equipment has to be replaced, landscaping is ongoing, and elevators breakdown as frequently as the MRT.<\/span><\/p>\n\n\n\n

Fast forward 10 years, and the most expensive condo can easily become a complete dump. <\/span><\/p>\n\n\n\n

Now when the pool has missing tiles, and the garden areas look like that planet in Star Wars, you can bet your property value will take a hit \u2014 and the best property agent in the world can\u2019t hide it from prospective buyers.<\/span><\/p>\n\n\n\n

It also goes without saying that a poorly maintained condo is harder to rent out.<\/span><\/p>\n\n\n\n

So when you\u2019re about to buy a condo, don\u2019t ignore the management. Look out for these things as well:<\/span><\/p>\n\n\n\n

For new launch condos<\/b><\/h3>\n\n\n\n

If you’re buying a new launch condo, you have to rely on the reputation of the developer. Most developers will be happy to tell you who they want to manage the condo, and why \u2013 be sure to ask and check.<\/span><\/p>\n\n\n\n

Some developers have turned this into a selling point. Eastern & Oriental, for example, is known for their obsession with condo management; particularly for concierge services (they started with hotels and it carried over.) <\/span><\/p>\n\n\n\n

Bear in mind, however, that the condo management picked by the developer can be replaced later.<\/span><\/p>\n\n\n\n

For resale condos<\/b><\/h3>\n\n\n\n

If you are buying a resale unit, it is quite easy to check on how well the management is doing (or rather, not doing.) Do the following:<\/span><\/p>\n\n\n\n