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SINGAPORE: More condo residents hit by increased maintenance fees.

Residents of Parc Komo in Upper Changi and The Essence in Yishun are grappling with unexpectedly high monthly maintenance fees, with Parc Komo residents paying up to 65% higher. The increase has raised concerns among residents, prompting petitions for reductions, Channel News Asia reports.

Parc Komo Residents

At Parc Komo, a development comprising 276 residential units completed in June, maintenance fees have surged by up to 65% from the amounts conveyed during the project’s launch.

Initial figures ranged from S$327 for a one-bedroom unit to S$522 for a five-bedroom home. Still, upon receiving their Temporary Occupation Permit letters, residents found themselves paying fees up to 65% higher.

A man in his 40s, who was previously paying S$392 for a two-bedroom unit, said he ended up paying S$464. He stated, “For a two-room (unit), to pay such a high maintenance is like buying a luxury condo.”

The increase in the maintenance fee, as the developer told the residents, was due to inflation.

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Some residents said they understand that fees are rising due to inflation, but it was ”higher than expected.”

Another resident stated, “I feel that because this is not really a high-end development … You shouldn’t have this kind of fees.”

Eight representatives, who formed a “working group” to address the issue, expressed dissatisfaction with the lack of transparency during discussions with the developer in October.

The representative said, “We were also not provided with a breakdown of the services, in particular the scope of services and manpower required to service the estate at the meeting by each vendor.”

“We felt that the developer was not candid with us and failed to explain why the maintenance fees were substantially higher than represented except that the budget was submitted and approved by the Building and Construction Authority.”

The developer proposed a 12% reduction in fees, later revised to 9.3% in December, citing decreased costs from vendors such as cleaning and security firms.

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Despite reminders, the group claims they have not received confirmation of the proposed reduction.

The Essence Residents

Similarly, residents of The Essence, a 99-year leasehold project with 84 units completed in June, face unexpected and unsustainable maintenance fee hikes.

The fee for a two-bedroom unit rose from the marketed S$300 to over S$500, prompting residents to launch a petition on Change.org in November.

According to the online petition, “Our condo maintenance fees have skyrocketed to levels that are not only unexpected but also unsustainable for many of us.”

Complaints include the lack of transparency regarding routine work and the disproportionate fees in relation to the facilities offered.

On Dec 6, the petition update, according to Chambers International, the condo’s managing agent “finally shared the schedule and job scope of the routine works including cleaning, fogging, and security.”

Chong Kuo Development, the joint venture behind The Essence, responded that estimated maintenance costs during the project’s marketing in 2018 were within market rates. However, a spokesperson said the “maintenance costs have since exceeded the estimates from five years ago.”

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In a similar issue that came to light last Oct 9, Dairy Farm Residences condo owners were upset as their maintenance fees more than doubled. The developer’s lawyers sent a resident a Temporary Occupation Permit (TOP), and to the resident’s shock, he was requested to pay six months’ worth of upfront maintenance fees.

According to Channel News Asia, Dairy Farm Residences reduced maintenance fees by around 40% after the residents filed their complaints.

Why are condo maintenance fees high?

The Building and Construction Authority (BCA) has highlighted the uniqueness of maintenance charges for each development, influenced by factors such as size, facilities, and service expectations.

BCA stated that providing average condominium maintenance fees would be neither feasible nor helpful.

BCA added, “Maintenance charges for new developments may be affected by the current market conditions of the costs for goods and services, as well as supply chain disruptions.”/TISG