Ageing Condos in Singapore Face Maintenance Challenges Amid Low Sinking Funds

As more private condominiums in Singapore cross the 30-year mark, issues like lift breakdowns, outdated infrastructure, and tight sinking funds are becoming more common — putting pressure on residents, MCSTs, and managing agents.

One example is Fernwood Towers, a 31-year-old freehold development near Siglap. Frequent lift failures since 2021 led to frustration among residents. In 2024, a resident had to carry his luggage down 21 floors when only one of three lifts was working. The MCST eventually raised a $1.7 million special levy for a full lift overhaul — after years of resistance.

31% of Condos Are Over 30 Years Old

According to ERA Singapore, about 31% of the 2,703 condominiums in Singapore are already over 30 years old. This number could reach 1,160 by 2035, assuming no collective sales take place.

Older developments face increasing costs to maintain infrastructure such as lifts, waterproofing, and electrical systems. But many MCSTs struggle with insufficient reserves, especially when sinking funds were originally set too low and have not been adjusted for inflation or rising repair costs.

Special Levies and Owner Resistance

When funds fall short, MCSTs often resort to imposing special levies — one-off payments from owners to fund urgent repairs. But these proposals often meet resistance, particularly from retirees or those on tighter budgets.

This can result in delays, disputes, and deteriorating conditions. For smaller developments, the problem is even more pronounced, as costs are spread over fewer households.

Calls for Policy Changes

Industry experts and the Association of Strata Managers (ASM) have proposed:

• Minimum sinking fund contributions

• Mandatory technical audits for ageing condos

• Public education on long-term capital planning

They argue that many MCSTs — often run by residents without technical or financial expertise — need clearer guidance and stronger financial buffers to manage ageing estates.

Some Councils Taking the Lead

At Sanctuary Green, a 21-year-old development in Tanjong Rhu, the council recently secured approval to raise both sinking and management fund contributions. Council chairman Ashoketaru Sengupta said they achieved buy-in by sharing clear data and projections with owners.

He added, “Whatever we do must be data-driven. It has to be a combination of logical arguments and long-term planning.”

The Way Forward

The Building and Construction Authority (BCA) has been in talks with managing agents and MCSTs to understand the challenges. While no changes to the Building Maintenance and Strata Management Act have been confirmed, discussions are ongoing.

In the meantime, councils like those at Fernwood Towers and Sanctuary Green are setting examples by taking proactive steps — even if that means pushing through unpopular decisions — to protect their estates’ liveability and asset value.