New owners of Dairy Farm Residences shocked as maintenance fees more than double what they were initially told
The entrance of Dairy Farm Residences.
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- Residents of Dairy Farm Residences in Upper Bukit Timah were shocked to find out that they have to pay monthly maintenance fees that are more than double what they were told when they bought their units
- Some are upset as the affordability of the condo's monthly fees had been a factor in their decision to purchase the property
- The sharp spike in fees is “mainly due to inflationary increases in security, cleaning and other related costs”, said developer United Engineers Limited (UEL)
- UEL is working with the authorities to lower the approved maintenance charges
- One property analyst said it is common for maintenance fees to be raised but that Dairy Farm’s residents might have initially been given estimates that were “unrealistically low"
BY RENALD LOH
Published November 20, 2023
Updated November 20, 2023
SINGAPORE — Residents of newly completed condominium Dairy Farm Residences in Upper Bukit Timah are reeling after finding out that they have to pay monthly maintenance fees of over S$713 — more than twice the amount they were told when they bought their units.
Several residents who spoke to TODAY said they are upset as the affordability of the condominium's advertised maintenance fees had been a factor in their decision to purchase the property and that they might consider pursuing legal action.
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Others, meanwhile, remain hopeful that the fees will be lowered as residents have been in ongoing talks with developer United Engineers Limited (UEL) over the issue.
In response to TODAY’s queries, UEL said that the sharp spike in fees is “mainly due to inflationary increases in security, cleaning and other related costs”, and that they have been working with the authorities to lower the approved maintenance charges.
SHOCKED AND PERPLEXED
Dairy Farm Residences is a new mixed development consisting of a private residential condominium that was granted a temporary occupation permit (TOP) last month and Dairy Farm Mall, a commercial building which will be accessible to the public upon completion.The marketing materials of Dairy Farm Residences, presented to potential buyers since its launch in 2019, indicated that its estimated monthly maintenance fees would fall within a range of S$260 to S$350 depending on the unit.
Two residents, who wanted to be known only as Mr Hafiz and Mdm M, said that they were a bit surprised that the range was so low, given that this was to be a mixed development, but were assured by their property agents in 2021 and 2022 respectively that the figures presented in the brochure were reasonable estimates.
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They, like several other residents TODAY spoke to, preferred not to give their full names for fear of legal repercussions.
They and other residents were therefore shocked when they received an email from UEL in early October informing them that the maintenance fees would in fact range from S$713 to more than S$800, depending on the type of unit that was purchased.
The email said that the condominium had been granted a TOP and that they would be able to collect their keys upon making an advance payment of six months’ worth of maintenance fees.
While residents acknowledged that making such an advance payment was common practice for private condominiums, the substantial increase in fees was wholly unexpected.
Mr Xu Hanzhong, 39, a civil servant, said that the affordability of the maintenance fees had been a strong reason for his decision to buy a two-room unit at Dairy Farm, and that he felt aggrieved at finding out the new figures.
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A resident who wanted to be known only as Mrs Tan said that she and her husband were already “mentally prepared” to pay around S$400 for their three-room unit at Dairy Farm at the point of purchase, but they were perplexed at just how big the spike was.
Mrs Tan said that while the new amount would not affect their budget significantly, they would much rather pay an amount closer to the market rate.
Another resident who also purchased a three-room unit at Dairy Farm added: “The different amount really hits us because it adds up. (We are also hit by) rising interest rates and now, if we have to pay around S$2,100 per quarter for the maintenance, it is really, really painful."
DISCUSSIONS TO LOWER FEES ONGOING
Since early October, a group of around 20 residents of Dairy Farm Residences have had several meetings with UEL to discuss whether a decrease in maintenance fees is possible.Residents have pointed out at these meetings that similar condominiums in the vicinity have much lower maintenance fees.
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According to listings on the real estate portal PropertyGuru, the monthly maintenance fees for residents of Hillion Residences, a mixed development in Bukit Panjang that was completed in 2018, is around S$200 to S$300.
A document seen by TODAY also shows that monthly fees for a three-bedroom unit at Verdale Residences in Upper Bukit Timah, a project completed last year, is around S$440.
Both developments are within a 3km radius of Dairy Farm Residences.
Mr Nicholas Mak, the chief research officer at real estate website Mogul.sg, said that it is quite common for condo developers to raise maintenance fees between the marketing period and TOP.
But the sharp spike in this particular case could mean that the marketing brochures had given “unrealistically low” estimates, he said.
“This is the first time I’ve come across an issue like this. Most of the time… even if there’s an increase, it would not cause its residents to go up in arms,” he said.
Nonetheless, the maintenance fees for a condominium depends on a variety of factors unique to each development, so it is not that easy to compare between projects.
“What is the cost of maintaining a car? It depends on whether it’s a Mercedes-Benz or a Toyota,” said Mr Mak.
He noted that the costs of condominium maintenance — including energy and water costs, the salaries of cleaners, security guards and gardeners, and the materials needed for repair work — have also gone up in recent years, owing to factors such as the Covid-19 pandemic and the Russian invasion of Ukraine.
Condominiums with more units also tend to have lower maintenance fees as each party would have to pay less, he added.
Dairy Farm Residences comprises 460 residential units, compared with 258 and 546 units at Verdale Residences and Hillion Residences respectively.
Some Dairy Farm Residences owners said they do not expect a significant lowering of the maintenance fees as they are aware that condos around Singapore have been raising such fees every year.
Still, they are hopeful that a solution can be reached with the developer to bring it down to an amount that is more in line with the rates of condominiums in the vicinity.
“If the developer was not keen on solving the issue, they would not have met us in the first place,” said one resident who wanted to be known only as Mr Wong.
“I’m cautiously optimistic that things will move for sure, but there are some things that will take longer than others, and we hope that in the next few weeks there will be a positive response.”
