Real Estate

While the iconic hit song “Raindrops Keep Falling on My Head” may bring a smile to your face, you won’t be singing along if water keeps finding its way into your house whenever it rains.

The dread of rainwater leaks in the owner of a luxury four-bedroom freehold flat namely  Tembusu Grand on Farrer Road was realized when the Tembusu Grand Showflat and floor of two bedrooms and hallways, as well as closets and door frames, were severely damaged.

They also changed the Tembusu Grand Price.

Fixing the issue was made more difficult by the fact that it happened in the midst of the 2020 COVID-19 pandemic lockdown.

Since the leak was so severe, the owner and his family had to spend an additional $60,000, first on repairs and then on lodging somewhere for seven months.

A hidden rainwater downpipe within the apartment building was eventually identified as the cause of the leak. There was no indication of the shared pipe in the building plans.

Even though the owner filed a lawsuit against the condo’s management, the Strata Titles Board ruled that they didn’t take too long to figure out what caused the pipe to burst and fix it.

A hidden rainwater downpipe inside the condo building was eventually identified as the source of the leak. There was no indication of the shared pipe in the building plans.

Even though the owner filed a lawsuit against the condo’s management, the Strata Titles Board ruled that they didn’t take too long to figure out what caused the pipe to burst and fix it.

Although no one had any prior knowledge of the pipe’s existence, the board still mandated that management pay the owner around $50,000 because of its “strict duty to maintain common property.”

High Court Judge Andre Maniam ruled that the company was not negligent in identifying and fixing the problem, and thus the compensation was not necessary.

He explained that the condo association does not have to cover all repairs to common areas like pipes because of a legal loophole. In such cases, a building’s management would be liable for the loss only if it had failed in its basic duty to maintain such assets or was negligent in its work.

Suggested Article: Dairy Farm Residences’ new owners were shocked when maintenance expenses doubled

Condominium owners at the recently built Dairy Farm Residences and Dunman Grand in Upper Bukit Timah were taken aback when they learned that their monthly maintenance costs would be more than S$713 per month or more than twice as much as they had been led to believe they would be.

Several condo owners expressed displeasure today, explaining that the low maintenance costs of condos like Grand Dunman Showflat were promised were a major factor in their balance unit chart to buy the building.

Still, some haven’t given up hope that the fees might be reduced, given that discussions between homeowners and developer United Engineers Limited (UEL) are underway.

UEL explained the dramatic rise in fees as “mainly due to inflationary increases in security, cleaning, and other related costs” in answer to TODAY’s inquiries and said that they are working with the authorities to reduce the allowed maintenance rates.

Last month, a temporary occupancy permit (TOP) was issued for the condominium units at the new mixed-use complex known as Dairy Farm Residences, which also includes the commercial component known as Dairy Farm Mall.

Since its 2019 debut, Dairy Farm Residences’ marketing materials have informed prospective purchasers that the expected monthly maintenance rates vary from S$260 to S$350.

Mr. Hafiz and Ms. M. (both of whom requested anonymity) moved in in 2021 and 2022 and said they were surprised by the low range given that this was to be a mixed development, but had been assured by their property agents that the numbers provided in the brochure were reasonable estimates.

Suggested Article: Keppel Pacific Oak US REITs from Singapore want higher portfolio occupancy

People are leaving the big entry markets and condos like Treasure Tampines, which have high taxes, lots of rules, and high crime rates. Businesses are moving into towns in the Sunbelt and in the 18-hour time zone for the best balance unit charts and awesome showflat location. (Photo by Shahrill Basri for The Edge)

Keppel Pacific Oak US REIT (KORE) intends to improve occupancy rates by attracting people from gateway cities to second-tier towns, where its properties are situated, amid a weak US office market.

In an interview with The Edge in Kuala Lumpur, KORE management Keppel Pacific Oak US REIT Management CEO David Snyder says several of the Singapore-listed REIT’s 13 sites have been rehabilitated to attract tenants.

It was difficult when we debuted and still is. Since we don’t invest in Asian markets like San Francisco, Los Angeles, or New York, self-education has been necessary. However, those huge markets are losing population and have high taxes, regulations, and crime. Snyder said Sunbelt and 18-hour cities are flooded with businesses.

Sunbelt cities are in the US’s southern tier, whereas 18-hour cities are thriving mid-sized cities with above-average urban population growth, appealing facilities, and cheaper cost of living and doing business than gateway cities.

KORE has 13 freehold office buildings and business campuses with a combined asset value of US$1.42 billion (RM6.5 billion) and a net lettable area of 4.8 million sq ft in eight markets: Seattle, Washington; Denver, Colorado; Sacramento, California; Nashville, Tennessee; Orlando, Florida; and Austin, Dallas, and Houston, Texas.

Technology tenants choose our low-rise buildings and company campuses. Except for Amazon.com Inc., most technological businesses have low-rise campuses for testing, fabrication, or manufacturing on the first level and offices above. Snyder says it’s hard to sell that situation to people who are accustomed to gorgeous, glittering structures, but KORE provides regional variety. The strong US currency may not now benefit Malaysian investors.

According to Snyder, the US economy will have ups and downs like everywhere else, but it will recover. Sunbelt cities have higher GDP, employment rates, wage growth, and lower taxes, despite rising crime rates in gateway cities since the COVID-19 pandemic.

The US-based Pacific Oak Capital Advisors and Singapore’s Keppel Corp founded KORE, which was listed in November 2017. Snyder was chief financial officer of Pacific Oak, a publicly listed, non-traded REIT previously known as KBS, for seven years.

Snyder says Pacific Oak managed a REIT with assets bought following the 2008 global financial crisis. The assets have funding issues or deteriorated structures. After turning the buildings around, the partners launched the REIT in Singapore, Asia’s biggest REIT market, taking advantage of its regulatory framework and investor tax benefits.

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