By Joseph Wong
Mixed developments, which comprises residential and one or more components like retail, commercial, office and hotel, present unique challenges in Malaysia. As the nation transitions from single-use strata buildings to complex mixed developments, the intricacies of design and management become increasingly pronounced.
According to the Malaysia Property Market Centre (NAPIC), Malaysia boasts nearly seven million properties. This total encompasses around 5.8 million residential units, as well as offices, shopping complexes, retail shops, serviced apartments, industrial buildings and hotels.
In a high-rise setting, the interactions between unit owners are more pronounced compared to landed properties. The proximity of neighbours means that the quiet enjoyment of one's unit can be significantly affected by the behaviour of those in surrounding units.
Strata living requires collective effort to maintain shared spaces or common properties, usually through monetary contributions from each owner. While this system seems logical in theory, practical challenges often arise. For instance, if a unit's waterproofing fails, the resulting leaks can damage units below. The responsibility for repairs typically falls on the unit above, leaving the affected parties at their mercy.
Despite updates to the Strata Management Act (SMA) 2013 aimed at addressing such issues, practical implementation remains challenging. The evolving nature of strata management continues to test the boundaries of legislative effectiveness.
Striking a balance
Mixed-use developments, which combine residential units with retail and sometimes office spaces, introduce an additional layer of complexity. Balancing the needs of various stakeholders—residents, retail operators, and hotel operators—can be particularly challenging.
For example, residential unit owners often seek the highest level of security and privacy, while mall operators prefer to maximise foot traffic by ensuring easy access and extended operational hours. This can conflict with hotel operators who require quieter environments during nighttime hours. Finding a harmonious balance among these competing interests is a significant challenge in mixed-use developments.
Strata developments can be split horizontally or vertically, each with its own advantages and disadvantages. For vertical developments, where office, hotel and residential towers sit above a mall, benefit from a compression effect. This setup allows foot traffic to flow from the upper floors down to the mall and from basement car parks up to various components of the development. However, this configuration also introduces numerous access points, which can pose security and control issues.
Conversely, horizontal developments, which may have separate management for each component, offer clearer architectural and engineering design. This method simplifies management and reduces the number of shared facilities, leading to more straightforward decision-making. However, these developments may require larger investments and may not maximise plot ratios as effectively.
Role of property managers
In large mixed-use developments, property managers play a crucial role in moderating the diverse expectations of stakeholders. Whether hired by developers, the Joint Management Body (JMB), or the Management Corporation (MC), property managers are tasked with ensuring that common facilities meet the needs of all parties involved.
For instance, when residents move in, property managers must ensure that all facilities and security measures are functioning as intended. Similarly, when a mixed-use retail development opens, the property manager's role is to create an environment that attracts foot traffic and fosters retail activity.
Despite their critical role, property managers' authority is often limited to the management of common areas. The value and success of individual strata units depend on the decisions made by their owners regarding rental and business operations, which in turn affects the overall development's performance.
Strata unit owners each have important roles to play in the success of their developments, but practical challenges often arise. Effective strata management requires close collaboration among developers, property managers and unit owners. Each party operates under different regulations and responsibilities, which can limit their effectiveness and coordination.
The role of property managers is particularly demanding, requiring expertise in construction, management, legal issues, and people skills. They are often the unsung heroes who handle the day-to-day challenges of maintaining strata developments. Whether they are paid professionals or volunteers, their contributions are vital to the smooth operation of mixed-use developments.
Looking ahead, it is crucial for non-governmental organisations (NGOs), developers and JMBs/MCs to continue supporting and developing talent in the strata property management industry. This sector requires individuals with a broad range of skills and knowledge to navigate the complexities of modern strata living effectively.
Managing mixed strata developments in Malaysia involves navigating a complex landscape of competing interests and logistical challenges. While the system is far from perfect, ongoing collaboration and investment in skilled property managers can help ensure that these developments continue to thrive and serve their communities effectively.
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