Two more condos impose staggering management fees in wake of Dairy Farm saga

SINGAPORE: In the wake of the recent uproar over inflated management fees at Dairy Farm Residences in Bukit Panjang, residents at two other condominiums, Parc Komo and The Essence, have now come forward with complaints of management fees reaching 65 per cent higher than initially advertised.

The controversy began in November when it was revealed that Dairy Farm Residences had imposed management fees ranging from $700 to $800, a significant jump from the originally advertised $260 to $350. Dairy Farm Residences eventually reduced the fees following public outcry, though not to the initially marketed rates.

Parc Komo, a freehold project completed in June with 276 residential units, initially advertised management fees between $327 and $522. Residents, however, claim to be paying much higher fees than the advertised range.

A resident who chose to remain anonymous revealed to CNA that despite expecting a manageable $392 in monthly management fees for his two-bedroom unit, he ended up paying a staggering $646. Developers allegedly attributed the increase to inflation, but residents argue that a 60 per cent rise is unacceptable.

Ms Zheng, another resident at Parc Komo, expressed dissatisfaction, stating that the facilities do not justify the high fees. She compared her situation to friends and relatives in high-end apartments along Orchard Road, suggesting that the project is not of a similar calibre.

In response to the rising fees, residents initiated a petition in October and formed a working group with eight representatives to negotiate with developers. Despite their efforts, the group claims to have received no crucial documents from developers, hindering their ability to scrutinize the management costs effectively.

The working group acknowledged that the developer initially proposed a 12 per cent fee reduction in October, which was later inexplicably lowered to 9.3% per cent. Currently, there is no confirmation from the developer regarding the fee reduction.

Meanwhile, residents of The Essence condominium in Yishun, a 99-year leasehold project with 84 residential units, have also launched a petition on Change.org to lower their escalating management fees. Originally marketed at $300 for a two-bedroom unit, the fees have reportedly surpassed $500.

Chambers International, the management representative for The Essence, provided residents with a schedule of daily management work but failed to provide a detailed cost breakdown. It said that the developer is aware of residents’ concerns and is collaborating with the management agent to engage with residents.