Hidden Costs of Old Lifts in Singapore (+ Why Lift Modernisation Pays Off)
Prioritising short-term savings over lift modernisation in Singapore can lead to significant financial repercussions. Property managers and lift owners often underestimate the long-term costs associated with maintaining outdated lift systems.
From frequent lift breakdowns to costly repairs, the hidden expenses associated with old lifts can quickly add up. In Singapore's competitive property market, an outdated lift can even impact your building's value and attractiveness to potential tenants or buyers.
In this article, we'll explore the hidden costs of maintaining outdated lifts and why lift modernisation is a smart investment for property managers and lift owners in Singapore.
What Is Lift Modernisation?
Lift modernisation involves upgrading existing lift systems with new technology and components to enhance performance, safety, and efficiency. It's a comprehensive process that goes beyond simple lift maintenance or repairs.
The Building and Construction Authority (BCA) highly recommends modernisation for lifts that are more than 15 years old.
The lift modernisation process typically targets 2 major areas:
The modernisation of the Lift Control System (Main Control System, lift buttons & displays, emergency backup systems & sensors etc.)
The modernisation of the Lift Mechanical System (The main motor, wire ropes & safety mechanism for free-fall detection etc.)
5 Hidden Costs of Not Modernising An Ageing Lift in Singapore
Neglecting lift modernisation in Singapore can lead to unexpected expenses and operational challenges. Here are five hidden costs associated with maintaining outdated lift systems:
Frequent Lift Breakdowns & Increased Lift Repair Costs
As old components wear out, lift repairs become more frequent and costly. Old lifts are also prone to lift breakdowns, resulting in higher lift servicing costs. This is a known problem for all old lifts, and precisely the reason why the BCA introduced the Maintenance Control Plan (MCP) in 2024.
All our lift modernisation clients have faced this issue, and you'll find it documented in our case studies—but the truth is, it's something that can be avoided.
Higher Costs Due To Scarcity of Spare Parts
Lift maintenance costs for ageing lifts escalate rapidly. As lift technology advances, spare parts for older models become scarce and expensive.
Manufacturers often discontinue production of components for outdated systems, forcing lift maintenance companies to source parts from specialised suppliers at premium prices. In some cases, custom fabrication may be necessary, further increasing costs.
One of our clients, a District 10 condominium, experienced this exact problem of parts obsolescence.
The condominium’s lifts had been serviced by the developer's incumbent lift installation company for over 20 years. The lift components were obsolete and challenging to replace, resulting in frequent lift breakdowns occurring more than once a month!
The lift repair costs were exorbitant due to the scarcity of parts, and over time, these hidden expenses far outweighed the initial savings from postponing lift modernisation.
Decreased Property Value
Modern lifts are a key selling point for potential buyers or tenants, particularly in Singapore's competitive real estate market. On the other hand, buildings with outdated lift systems can experience a huge decrease in property valuation.
For instance, one of our lift modernisation clients had an old conservation shophouse with a hydraulic lift that was over 25 years old. The lift was slow, frequently broke down, and its old appearance led to significant tenant dissatisfaction.
The situation became so problematic that tenants considered terminating their leases due to the lift's operational issues.
Our solution was a full lift conversion—this lift modernisation project completely eliminated lift breakdown incidents and tenant complaints four months post-installation. The owner even considered raising rents during the next renewal!
Reliable lifts are ultimately a contributing factor for higher occupancy rates and rental yields, making them a valuable investment for property owners. Naturally, the reverse is true as well.
Energy Inefficiency & Higher Utility Bills
Older lifts typically consume more energy than their modern counterparts. This inefficiency translates to significantly higher electricity bills, impacting a building's operational costs.
For instance, hydraulic lifts, which were widely used over the past few decades, are less energy-efficient compared to traction lifts.
One of our lift modernisation clients, an SGX listed solutions manufacturing company, was initially using an old hydraulic cargo lift. Not only did it suffer from parts obsolescence and increasing lift breakdown rates, it was also energy-inefficient.
We converted their hydraulic lift into a motor room-less traction lift, and besides space efficiency (traction lifts take up significantly less space due to their motor room-less design), it also resulted in lower power consumption.
Potential BCA Liabilities
Neglecting to modernise an old lift can lead to frequent lift breakdowns and potential BCA liabilities due to complaints. Another one of our clients, a condominium estate in Geylang, suffered from this issue.
The estate had a single lift which was more than 20 years old. Many parts were obsolete, leading to frequent lift breakdowns and extended repair times due to the unavailability of new parts. Rising repair costs and prolonged downtimes were causing frustration and inconvenience for the residents who depended on this single lift.
Two major lift breakdowns, each causing a lift shutdown for over two weeks and incurring significant repair costs, led a resident to complain to the BCA. The BCA then questioned the MCST about the extended repair times and recommended a lift upgrade due to the lift's age. Such potential liabilities could have been avoided before reaching this stage.
Lift Modernisation Pays Off In The Long Term
Modernising your lift isn't just an upgrade—it's a smart investment in your property's future. By addressing the hidden costs of outdated lift systems, you'll enhance safety, reliability, and stay ahead in Singapore's competitive real estate market.
Feel free to reach out to Hin Chong for a free lift assessment. Our qualified Lift & Escalator Inspector (LEI) will give you an honest and independent assessment of your lift's condition, ensuring our recommendations are impartial and not biased towards current lift contractors.
