New Opportunities of
Property Management under
Economic Recession:
In multiple ownership
In multiple ownership
Difficulty:
The responsibilities and relationships
between owners and property
managers are dictated
Statutory framework:
Non-statutory framework:
Building Management Ordinance
(BMO), Cap 344
Deed of Mutual Covenant (DMC)
Lease condition
Code of Practice
Building Management
Ordinance (BMO), Cap 344
To facilitate the incorporation of owners (OC) of flats in
buildings or groups of buildings
To provide for the management of buildings or groups of
buildings and for matters incidental
Mentions about Owners Corporation is responsible for
managing the common parts of the building
Owners have to contribute funds to the management of
the buildings
Does not provide any statutory guidelines on how the
shares of property rights in the public area in the
housing community should be divided
Advantageous for the developer
Deed of Mutual Covenant
(DMC)
HKSAR government is the only legal owner of all land
Property owners in the high-rise buildings are
actually tenants in common with exclusive use rights
over their own flats plus an amount of undivided
shares in the entire lot and building
It illustrates the proportion of shares of each owner,
the use of building, the public area which is not
exclusively owned by any owners, the rules that
occupiers
Deed of Mutual Covenant
(DMC)
Inconsistency between the DMC and the
Building Management Ordinance, Cap 344
BMO prevails
DMC states the rights and responsibilities of
the property manager
Any violation of the manager to DMC, the
manager will be punished as stated in the
DMC, instead other form of statutory
punishment
Lease Condition
It is a contract between the government (as a
lessor) and the land owner (as a lessee)
Listed the site particulars and the details of
the site
Guaranteed the conditions of the building to
be kept as the time that the lease was signed
(with the use approved in the lease )
Code of Practice
Publicizes standards and practices of management
and safety in relation to the common parts of a
building that are to be observed and followed by an
owners’ corporation.
Advises the management of the building areas
including the common facilities and landscaping areas
Can prevent statutory punishment to the property
management company unless it does not follow the
Code of Practice
Code of Practice
Concerned with the laws relating to :
Environmental hygiene and water supply
(Public Health And Municipal Services
Ordinance, Cap 132)
Security(Security and Guarding Services
Ordinance, Cap.460)
Insurance(Employees’ Compensation
Ordinance, Cap.282)
Financial management(Building Management
Ordinance, Cap 344)
Opportunities available in
Hong Kong
Facilities Management
Ensure all assets in good condition during its
life cycle cost
Concern with the initial cost, operation,
maintenance and disposal cost
The main theories of FM, such as strategic
facilities management and space planning etc,
cannot be implemented in the properties
which are too small or not wholly owned real
estate
Example in U.S.
Life span of buildings in Japan:40 years
Life span of buildings in US: 100 years
Life span of buildings in UK: 140 years
Why?
Situation in Hong Kong
Hong Kong as a financial centre with modern
facilities
Keen awareness of personnel costs as well as
maintenance expenses of active and idle
facilities under economic recession
Asset management which is usually
charged to the accounting and/or finance
department, and the information system
department maintains information
network
Green Management
Environmentally friendly to decrease
operation costs
Smoke-free workplace policy
Paper saving
Energy saving
Waste Collection for Recycling
Friendly relations can be developed between the
company to the public or the HKSAR government
Opportunities in China real estate
Situation of Property
Management in China
Property management is not well understood
to the public
No formal qualifications required to managers
Lack of professionalism in management
Absent of the Deed of Mutual Covenant
Professional property managers are needed!
Reference
Bilingual Laws Information System
http://www.legislation.gov.hk/eng/home.htm
Code of Practice on Building Management and Maintenance
http://www.buildingmgt.gov.hk/file_manager/en/documents/code_of_practice/c
ode_of_practice_on_building_management_and_maintenance_en.pdf
Renseignements internationaux
http://strategis.ic.gc.ca/eic/site/imr-ri3.nsf/fra/gr-83472.html
Environmental Report
http://www.ird.gov.hk/eng/pdf/a04_env.pdf
Green Office Management
http://www.hyd.gov.hk/eng/public/publications/er/doc/Green_Office.pdf
The End~Thank you!