Monthly Condo Maintenance Fees As High As $1,000 in 2023: What to Expect in 2024?

If you’ve been living in a condo, you may have felt the pinch of rising condo maintenance fees, which have climbed as much as 30% higher, with some condos imposing fees as high as $1,000 per month. 

Among the recently launched projects in 2023, the 1,008-unit Grand Dunman has an estimated monthly maintenance fee starting at $270 for units of 538 square feet (sq ft) or less. For larger units (2,691 sq ft and above), the fee goes up to $540. 

Condo maintenance fees in 2023 are as high as $2,000 per month in some older developments.(Photo: CDL)

Similarly, at the 638-unit Tembusu Grand, the monthly fee is estimated to range from $325 for a 1-bedroom unit to $585 for a 5-bedroom penthouse.

While larger developments with a greater number of units tend to charge lower fees due to the broader distribution of costs, there is a general upward trend in fees. This is also attributed to inflationary pressures and increases in labor, utility, and business costs.

Factors contributing to the rise in condo maintenance fees

The steady rise of these condo maintenance fees show no signs of slowing down due to several factors, such as an increase in manpower and material costs and higher-priced contracts for security, cleaning, and landscape services.

Rising utility costs, particularly water and electricity tariffs, add to the financial burden. Water prices surged by 30% over 2 years, with an additional 18% increase anticipated in the next two years. 

Meanwhile, electricity tariffs are set to rise by an average of 3.7% in Q4 2023, further impacting condo maintenance fees.

New launch condo projects reflect higher maintenance fees

The surge in fees is also evident in new projects. Condo owners of the recently completed Normanton Park, a 1,862-unit development, are set to pay a management fee of up to $333.75 per month. 

Condo owners of Normanton Park are set to pay $333.75 in maintenance fees per month. (Photo: Kingsford Development)

According to The Business Times, the estimated maintenance fees for new condos launched in 2023 range from $270 to $650 per month, excluding GST.

How does this affect you as a condo owner in 2024?

Property management companies in Singapore have started integrating technology into its operational procedures to further lower operation and manpower costs. Cutting excess manpower, streamlining their workflow and digitising their operation should now be considered a norm rather than an exception.

Digitalisation in property management 

Ohmyhome Property Management (OPM) has automated most of their administrative and operational methods, improving operational efficiency and lowering manpower costs as a result. 

Automated workflows 

Ohmyhome Property Management uses technology to automate workflows and improve operational efficiency and productivity.

For example, they have automated the contract renewal process with cleaning, security, and landscaping services to ensure that the maintenance and upkeep of condo facilities and equipment run smoothly and on schedule.

By integrating technology into their workflow, OPM reduces a Management Corporation’s (MC) reliance on on-site support and further lowers costs. They are able to create meaningful standard operating procedures to streamline the on-site manpower deployment, from cleaners to security, with clever use of the data they received and analyse.

Centralised service support

With OPM, MCST will have shared resources at the company’s HQ for administrative work that does not need someone to be on-site full-time. This person acts as a shared service centre and allows for a more cost-effective distribution of resources and productive estate management. 

This is unlike traditional condo management methods that require MCs to hire dedicated personnel due to the lack of centralised support by other property management firms.

What does this mean for your condo maintenance fees in 2024?

The strides being made by sectors in property management to embrace digitalisation will alleviate the higher maintenance fees you’re having to pay right now. 

The quickest way to alleviate your financial burdens in the form of management fees would be to consider a new property management company that can drive overall costs down and ensure higher quality of estate management. 

Sick of paying so much for your condo maintenance fees? 

Enjoy more savings with Ohmyhome Property Management. Drop us a message on WhatsApp and we’ll walk you through how we can significantly reduce your condo maintenance fees and improve your overall estate management. (Your condo residents will thank you.)