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Benchmarking Financial Performance of Condominiums

Author/s: Linda Tay, Joseph Ooi

Date Published: 1/01/2002

Published in: Volume 8 - 2002 Issue 2 (pages 94 - 106)

Abstract

This paper documents the process and the findings of a study to benchmark property management practices of private residential developments in Singapore. Besides providing a set offinancial performance benchmarks for the promotion of a higher level of condominium management, the empirical evidence shows that management expenditure decreases with the number of units within a development due to economy of scale. The age of a development, however, does not significantly influence management costs. The data further reveal interesting implications on the economics of outsourcing versus provision of in-house services.

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Keywords

Benchmarking - Management Corporation - Property Management - Singapore

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