Hong Kong estate saves HK$1 billion with tech-driven maintenance model

Hong Kong’s Residence Bel-Air has set a groundbreaking precedent in property management, saving its homeowners over HK$1 billion (US$127.5 million) through a technology-led approach to preventive maintenance. The estate’s strategy, dubbed “homegevity,” emphasizes targeted, consistent repairs to extend the lifespan of buildings and avoid costly large-scale renovations.

A wake-up call for ageing estates

The initiative comes in the wake of the Wang Fuk Court tragedy, which highlighted the risks associated with Hong Kong’s decades-old practice of relying on major renovation works for ageing buildings. Allen Ha Wing-on, convenor of the Residence Bel-Air owners’ committee, pointed out that the tragedy underscored the urgent need for change. He believes the “homegevity” model could transform property management not only in Hong Kong but in other cities grappling with urban decay.

Overcoming challenges to implement the model

Implementing the homegevity model at Residence Bel-Air was no small feat. Ha revealed that it took three years of concerted effort to navigate the vested interests of various stakeholders, including the owners of 2,800 residential units. Despite these challenges, the estate successfully adopted a science-based, technology-driven asset management solution that prioritizes preventive care over reactive renovations.

Why this matters for Hong Kong

Hong Kong faces a pressing issue with urban ageing, as nearly 25,000 private residential buildings in the city were over 30 years old as of last year. The financial burden of mandatory renovations for such buildings, including window replacements, reached a staggering HK$31 billion, according to research by the Legislative Council Secretariat. The success of Residence Bel-Air’s approach offers a viable alternative to reduce these costs while ensuring the safety and longevity of properties.

By embracing technology and science-based solutions, Residence Bel-Air has demonstrated how targeted maintenance can protect property value and spare homeowners from exorbitant renovation expenses. The model could serve as a blueprint for other estates in Hong Kong and beyond.

Source: South China Morning Post