Collectivism in Apartment Building Management in Hong Kong

Wei Gao and Daniel Chi Wing Ho

ERES from European Real Estate Society (ERES)

Abstract: Building management ought to be of paramount importance to sustainable development. It slows down a buildingís depreciation rate, delays redevelopment needs, and reduces construction waste. Despite various benefits brought about by building management, apartment owners are, in general, not willing to contribute to organizing for their management. Due to the fragmented ownership of apartment buildings and the fact that the responsibility of management is shared by all owners, collective action problems are common in the management process. Based on the collective action theory, this paper explores the reasons behind the problematic nature of building management and evaluates the effectiveness of three types of solution: individualist, centralized, and institutionalist. Using a case study, the paper demonstrates the results of a fusion of the three solutions in managing a residential estate with 22 apartment building blocks. It concludes that a combination of the three solutions is possible and conducive to solving collective action problems. It further suggests that institutions, central authorities, and selective incentives should be introduced to help apartment owners manage their buildings. The findings of this study contribute to the formulation of government policies to promote effective building management in apartment buildings.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2011-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2011_154

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