Push for mandatory upkeep fund amid building crisis

Hong Kong's property management industry has urged the government to establish a mandatory building maintenance fund to alleviate the financial strain on property owners, according to a report. Rosita Wong, president of the Hong Kong Institute of Housing, suggested that the fund would facilitate better planning and affordability of maintenance work as more buildings become aged.

She explained that the fund could finance building maintenance and repairs, with property owners contributing a percentage of their monthly management fee to the fund. Wong emphasized the urgency of the issue, stating that over 24,000 buildings in Hong Kong will be 50 years old or older by 2043. She advocated for the fund to be legally recognized as soon as possible to transition building maintenance from a reactive crisis-driven model to a planned and sustainable approach.

This, in turn, would reduce the financial burden on individual owners, enhance building safety, and lessen the burden on public finances. Wong also welcomed the government's proposal to create a pre-approved list of contractors and consultants for major building renovations, provided that sustained enforcement, continuous monitoring, and the use of smart tendering are ensured.

Lastly, Wong expressed support for the government's exploration of criminalizing bid-rigging in major building maintenance works and the intention to submit a legislative proposal this year.