Share Value

When a development is subdivided into strata lots, a share value is fixed for every unit, usually worked out mainly from floor area, sometimes with adjustments for factors set out in the original scheme. Every unit's share value is listed in the strata title plan, and the share values of all units in the development add up to a fixed total. It is a relative measure, not a dollar figure, and it does not move with the property market.

Share value drives two very different things. First, it sets your proportion of the total maintenance fund and sinking fund contributions, so a unit with a larger share value pays a larger slice of the building's shared running costs and capital reserve. Second, it sets your voting weight at general meetings. Many MCST resolutions, especially the significant ones such as approving major expenditure, amending by laws, or deciding on additions and alterations, are decided or counted with reference to share value rather than a simple one member, one vote count, while some more routine matters may be decided by a show of hands of owners present. The exact voting mechanics for a given resolution are set out in the Building Maintenance and Strata Management Act and the development's own by laws.

What commonly surprises owners is that share value is fixed at subdivision and does not change because you renovate, because your unit sells for more than a similar one on a different floor, or because your view happens to be better. Two units of identical size can carry the same share value even if the market clearly prices them differently. Owners in a large development with many small units sometimes also underestimate how little individual voting weight they carry relative to a handful of owners of larger units, which matters if a contentious resolution, such as a major upgrading project or a decision that could affect en bloc prospects, is being put to a vote.

Before buying, it is worth checking your intended unit's share value against its floor area and against comparable units in the same development, since this tells you both your ongoing fee exposure and your relative voting influence in that MCST, alongside reviewing recent AGM minutes to see how contested past resolutions have been.

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.