The true cost of owning a strata property
Buying a strata property could eventually involve looking beyond the purchase price, monthly instalment and maintenance fee, with the government proposing that longer-term maintenance and replacement costs be disclosed in sale and purchase agreements.
The proposal is part of the National Housing Policy (Dasar Perumahan Negara or DRN) 2026-2035, which takes a life-cycle approach to housing by looking not only at construction and ownership, but also the cost of operating, maintaining and eventually replacing building components.
Under the proposed policy, sale and purchase agreements for strata housing could include estimated maintenance charges and replacement costs throughout the property’s useful life. This would give buyers a clearer picture of the potential cost of ownership over the longer term.
Strata properties, such as condominiums and apartments, comprise individually owned parcels together with common property including lifts, corridors, swimming pools, landscaping and other shared facilities. Owners contribute maintenance charges and sinking funds towards the upkeep of these areas.
The distinction is important because the condition and future repair requirements of common facilities can affect both ownership costs and property values.
The DRN also proposes the use of Life Cycle Costing (LCC) in the design and maintenance of public housing. LCC considers the total cost of an asset over its useful life, including operation, maintenance and future replacement. The policy refers to the LCCsoft application developed by the Construction Industry Development Board (CIDB) and the JKR Life Cycle Costing manual.
At the management level, the policy proposes assessing strata management based not simply on whether maintenance charges are low, but whether expenditure is adequate and sustainable based on factors such as a development’s age, design, facilities and condition.
The government also plans to strengthen the capacity of Joint Management Bodies (JMBs) and Management Corporations (MCs), alongside amendments to the Strata Management Act 2013 (Act 757).
Greater professionalisation of building and property management is another focus, with more training and professional managers needed to handle increasingly complex strata developments, including common facilities, finances, maintenance and insurance.
For older developments, the policy could also bring greater emphasis on building-condition and dilapidation reports. These assessments could help determine whether a building should be maintained, rehabilitated or redeveloped as part of urban renewal efforts.
The DRN further proposes stronger urban renewal guidelines, cost-benefit analyses for redevelopment projects and greater protection and participation of existing communities.
Meanwhile, Universal Design Guidelines are proposed for all new housing developments, with the aim of making homes more accessible to older residents and persons with disabilities.
For prospective strata buyers, the biggest change could ultimately be greater transparency over the real cost of owning a property.
Instead of asking only, “How much is the maintenance fee?”, buyers may increasingly need to consider another question: “How much will it cost to maintain this building throughout its useful life?”
The DRN signals a broader shift towards treating housing as a long-term asset that must be properly planned, managed and maintained — rather than simply a property that is built and sold.
