Buying strata? New housing policy proposes showing long-term maintenance costs upfront, tighter management rules

KUALA LUMPUR, Aug 26 — A new National Housing Policy or Dasar Perumahan Negara (DRN) 2026-2035 is proposing to incorporate long-term maintenance costs into strata property transactions. This initiative is part of a broader strategy to enhance the maintenance and management of housing in the country. The policy aims to provide buyers with a comprehensive understanding of the total cost of ownership, beyond the initial purchase price and recurring monthly fees.

The DRN emphasizes a life-cycle approach, considering not just the construction and sale of a property, but also its operational, maintenance, and eventual replacement costs over its lifespan. Strata properties, which include condominiums and apartments, will have their maintenance charges and contributions to a sinking fund more transparently disclosed.

The policy also proposes the use of Life Cycle Costing (LCC) for public housing, a method that evaluates the total cost of an asset throughout its useful life, including operation, maintenance, and replacement. Additionally, the DRN aims to improve strata management and maintenance costs through better planning, professional building management, and amendments to the Strata Management Act 2013.

These changes will empower Joint Management Bodies (JMBs) and Management Corporations (MCs) to better manage strata developments, with a focus on professional management and enhanced training for relevant officials. The policy also calls for the inclusion of building condition assessments and life-cycle costing in decisions regarding maintenance, rehabilitation, or redevelopment of older strata schemes.

Furthermore, it seeks to strengthen the universal design of new housing developments to accommodate a wider range of residents, including the elderly and individuals with disabilities. For strata owners, this policy could shift the focus from merely understanding maintenance fees to comprehending the long-term costs of property maintenance.