The Straits Times Podcasts S1E87: Should the Government fund condo repairs?
Mar 19, 2026
Daniel Chen, lawyer at Lee & Lee who handles MCST disputes, and Andrew Lioe, strata management veteran and association president, discuss ageing condos and sinking funds. They explore why sinking funds get underfunded, disputes at AGMs, the strain on small developments, mixed-use tensions, and whether limited government co-funding is justified. Short, clear takes on what buyers should watch for.
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Why Sinking Funds End Up Underfunded
- Sinking funds are routinely set low at AGMs because owners prioritise short-term costs over long-term capital needs.
- Andrew Lioe explains sinking fund contributions often cover near-term items like repainting, leaving big future replacements underfunded.
Projections Often Right But Voted Down
- Projections themselves are usually accurate but owners vote down the required increases, causing shortfalls later.
- Daniel Chen notes managing agents provide forward schedules, but general body resistance keeps collections artificially low.
Boutique Developments Face Biggest Levy Pain
- Smaller developments under 100 units face acute funding pain due to lack of economies of scale.
- Andrew Lioe points out a $50,000 repair split among 15 units is far more burdensome than when split across 100 units.