WITH the government’s proposed Urban Redevelopment Act (URA) set to revitalise 139 ageing areas in Kuala Lumpur, including many of the city’s older walk-up flats, residents are bracing for significant changes in their financial commitments.
Designed to modernise Kuala Lumpur’s older residential areas, the URA initiative may bring unexpected financial burdens, particularly for long-time owners used to paying low maintenance costs.
“It’s crucial for owners to be briefed early on about the additional costs, particularly long-time residents, so they understand that new facilities will mean higher maintenance fees,” said A. Subramaniam, president of the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS).
Subramaniam says failure to pay for upkeep of building amenities could result in the property turning into a slum.
“With new facilities come new costs. If you don’t pay for these amenities, over time, the building could deteriorate into a slum,” Subramaniam warned.
He explained that for some residents, especially retirees on fixed incomes, the addition of facilities like gyms, swimming pools and security features would mean unavoidable increases in monthly maintenance fees and contributions to the sinking fund.
“Those who’ve spent their entire lives climbing stairs to reach their apartment units may not fully appreciate the convenience of lifts – until they break down due to maintenance issues.
“Without consistent payment, the quality of a property’s facilities can decline, leading to disrepair. Failure to adequately maintain common areas can cause any property to quickly fall into neglect,” he added.
PA International Property Management (KL) Sdn Bhd assistant director Gobinath Ramasamy said, “Many buyers are excited by the prospect of moving into a new home with facilities but fail to realise that these amenities require funding for upkeep whether they use them or not”.
The company manages over 50 properties in the Klang Valley.
Bong says redeveloping older buildings needs careful planning and a mindset shift for residents to pay more for maintenance.
Gobinath’s colleague, associate director Bong Lee Hong said, “Condo living is a lifestyle decision but buyers must approach it with a clear understanding of the ongoing costs, not just the initial purchase price,” she said.
“Many buyers opt for condos because owning a landed property in a prime area can be very expensive.
“Property agents and developers often highlight the allure of added facilities and buyers today are generally more aware of the fees and financial responsibilities associated with these amenities.”
Bong acknowledged that in the context of the URA, unlocking the value of prime land could benefit older buildings with ageing facilities.
“The shift from older to modern high-rise living may be appealing but the financial impact is unavoidable. It needs careful planning and a shift in mindset for current and future residents.”
Bong added that in high-density properties, maintenance fees tend to be more manageable, as costs would be shared among a larger number of units.
“In low-density developments, with fewer units, the maintenance burden is heavier for each owner. Fewer units mean higher fees per resident.”
Bong also highlighted that in commercial mixed developments, certain costs like water bills were charged at commercial rates, which were significantly higher than residential rates.
“This extends to assessment charges, parcel rent and utilities, which buyers need to be aware of,” she explained.
The reality of these rising costs can be jarring, particularly for those accustomed to the lower fees of older walk-up flats.
“Maintenance for high-rise buildings isn’t cheap,” added Subramaniam.
“The most substantial expenses are repainting, lift maintenance, water pumps and security and cleaning services – all of which are costly.
“It’s no longer just about affording the purchase as residents must also shoulder these ongoing expenses.”
Non-payment of maintenance fees and sinking fund contributions remains a significant issue, driven partly by dissatisfaction with services or facilities.
Joint management bodies and management corporations have begun implementing stricter enforcement measures, such as sending reminders, imposing interest on overdue payments and even deactivating access cards for defaulters.
“In severe cases, legal action may follow, including tribunal claims or attaching movable property to recover debts.
“However, legal routes are often time-consuming and the most immediate solution typically involves restricting access privileges for defaulters,” said Subramaniam.
“In light of these financial pressures, some property managers are turning to technology as a sustainable solution to manage costs,” added Gobinath.
“With manpower expenses rising, investing in tech solutions like automated security systems can reduce dependence on costly security personnel,” Gobinath said.
“Solar panels are also becoming increasingly popular as a way to offset high utility costs, particularly in energy-intensive developments.”
