Ageing condos could get help to fix estate problems, maintain sinking funds under new proposal

The MND is reviewing the Building (Strata Management) Act (BSMA), to equip MCSTs to run their estates better. Ageing condos could get help to fix estate problems, maintain sinking funds under new proposalSign up now: Get ST's newsletters delivered to your inboxThe review comes at a time when more private residential developments in Singapore have crossed the 30-year mark.ST PHOTO: NG SOR LUANJoyce LimPublished Mar 04, 2026, 01:58 PMUpdated Mar 04, 2026, 02:05 PMSINGAPORE - Owners of older condominiums could find it easier to get urgent estate problems fixed, under a new proposal to reduce the consent threshold for essential works. And to tackle higher maintenance costs and insufficient funds, management corporation strata titles (MCSTs) could also be told to make key financial information available to owners and prospective buyers.In addition, to prevent a small group of owners from dominating decisions by collecting a large number of proxy votes, measures are being considered to cap proxy holdings per household. These were among the proposed changes to the Building (Strata Management) Act, which is undergoing a comprehensive review, Second Minister for Finance and National Development Indranee Rajah said in Parliament on Mar 4. As part of a separate review of safety rules, condominiums and other private buildings could also get lift and escalator safety upgrades partially paid for by the Government, she added.Explaining the rationale for the changes during the debate on her ministry’s budget, Ms Indranee said some MCSTs and owners face rising maintenance costs, ageing facilities, and the challenges of collective decision-making to make improvements. Such issues must be addressed to ensure estates remain liveable and meet residents’ needs, particularly those of seniors, she added.The review comes at a time when more private residential developments in Singapore have crossed the 30-year mark. Over 1,000 of Singapore’s 3,750 such developments are at least 30 years old.In August 2025, The Straits Times reported that such older developments are increasingly struggling with maintenance issues.These could include lift breakdowns that take years to fix, or sinking funds that are inadequate to deal with spalling concrete and water seepages.Some owners and MCST council members subsequently called for stronger management rules and Government support to help sustain estates without overburdening residents. The issue was also brought up on Mar 4, with Mr Henry Kwek (Kebun Baru) saying that the authorities should also ensure that MCSTs build up adequate reserves early and review the governance of MCSTs.In her speech, Ms Indranee noted that many MCSTs only start collecting funds for lift replacement when the ageing lifts start to experience wear and tear and parts become obsolete. “If the MCSTs do not have sufficient sinking funds, they will need to collect special levies from unit owners, which may not be an insignificant sum, and for which the owners may not be prepared,” she added.To address this issue, MCSTs could be required to publish key information about their finances in a standard format, so owners and prospective buyers can assess a project’s financial health and the adequacy of its sinking funds.Measures are also being proposed to deal with small groups of owners who hold large numbers of proxy votes, controlling decisions in ways that do not reflect the broader interest of owners. A proxy is a person who has been authorised by a homeowner to represent him at a general meeting. Currently, an appointed proxy can only represent a maximum of two lots, or two per cent of the total number of lots in the development, whichever is higher. Ms Indranee did not elaborate on proposed lower consent thresholds to get essential works done. But the Building and Construction Authority (BCA) said in a separate statement that it is considering lower the resolution requirements for essential infrastructural upgrades. These include the installation of essential facilities, senior-friendly features and solar panels.Currently, a special resolution of 75 per cent share value is needed for such improvement works. The BCA is prepared to reduce this to a 50 per cent simple majority or share value.The BCA has been engaging strata stakeholders on some of these proposed changes since June 2025, said Ms Indranee. A public consultation will be held from Mar 9 to April 8, 2026, and residents of strata developments are encouraged to share their views. More on this topicOld condos at a crossroads: Rebuild, upgrade or conserve? Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking fundsMaking buildings saferMr Kwek, who chairs the government parliamentary committee for national development, also suggested that the Government consider targeted support such as funding assistance for lift replacements, senior-friendly upgrading and other improvement or maintenance works.Ms Indranee said her ministry is studying measures to improve the safety and accessibility of buildings and infrastructure, especially older lifts