Dairy Farm Residences cuts condo maintenance fees by 40% after complaints

SINGAPORE: Condo development Dairy Farm Residences has reduced maintenance fees by about 40 per cent after residents complained about a sudden increase in charges. 

In early October, residents who received their Temporary Occupation Permit (TOP) letters noticed that they had been asked to pay more than double the amount for maintenance fees than what was originally marketed.

According to a marketing brochure for the condominium seen by CNA, the estimated monthly maintenance cost for two-bedroom and most three-bedroom units was listed as being between S$260 and S$280 (US$195 to US$210).

For the remaining three-bedroom units and four-bedroom apartments, the estimated fee was between S$320 and S$350. The brochure did not state if the prices were inclusive of Goods and Services Tax (GST). 

All the residents CNA spoke to previously, whose units are in the lower bracket, ended up paying close to S$4,300 to cover six months of fees. This amounts to more than S$700 a month.

The monthly fees were more than S$850 for those with four-bedroom flats and certain types of three-bedroom units. 

Following the revision of fees, residents will now be charged slightly more than S$427 and S$513 for a month of maintenance fees based on the type of unit they own, inclusive of 8 per cent GST.

Residents can either request a refund for the surplus that they have paid or have the excess amount offset against future maintenance charges.

APPROVAL FOR REVISED FEES TAKES TIME

In response to CNA’s queries, United Engineers - the developer of Dairy Farm Residences - said that it received approval from the Building and Construction Authority for the revised monthly maintenance charges on Nov 23, and has informed the condo owners of the lowered fees. 

“Since early October, we have actively engaged our consultants (and) contractors and we also received various feedback from purchasers,” said the developer.

United Engineers added that together with the condominium’s managing agent, it has been explaining to buyers that the matter was being worked on and the process of revising the maintenance charges and getting the necessary approval takes time. 

CNA earlier reported that a group of about 20 residents had been in discussions with the developers on the initial maintenance fees.  

The developer also told CNA that the higher maintenance charges were based on budgetary estimates provided by external professional consultants. 

“Based on subsequent feedback from purchasers as well as further review of third-party services, we have applied for and received the approval to reduce the maintenance charges accordingly.”

SENSE OF RELIEF

After residents were notified of the new maintenance fee rates, some of them took to a common Telegram group to share the news. 

Residents CNA spoke to said they were relieved that the fees had been lowered, with one condo owner noting that it was “quite a significant drop” from what they had to pay initially. 

However, they also hoped that the cut to the maintenance fees would not affect services at the development. 

“We want to make sure that whatever rates that we are given are, first of all, competitive and, second of all, reflect the quality of service that we are getting on the ground as well,” said a resident in his 30s, who wanted to remain anonymous. 

He added that residents still want to hear from the developer on how the initial rate came about and what had been reduced in the revised amount. 

Another resident in his late 30s - who also did not want to be named - told CNA that he felt the fees were “still high” but “definitely a lot better” than before.  

He also noted that the fees are within the market rate when compared with similar developments around the area. 

“I think there’s a bit of relief in that sense that we won’t be forking out that crazy amount, and I think a lot of the residents feel the same as well,” he said.

A home owner, who only wanted to be known as Mrs Tan, added: “I would say that (a) 40 per cent adjustment is quite a big reduction compared to what we were initially given.

“We’re fairly relieved that we have this for now and we can at least concentrate on … moving in and renovation.”