Efficient Property Management in 3D-property Complexes – A study on property interactions and its positive effects on property management

Abstract: When 3D properties were introduced in Swedish legislation it was considered not necessary to also introduce new methods for property interactions. This has led to property owners wanting as little interactions as possible, where easements are the preferred solution over joint facilities when interactions are necessary. Property interactions is regarded as something negative that hinder efficient property management. Developments in Sweden are moving towards more complicated types of 3D-property complexes where commercial properties are mixed with residential units, the question is whether the current system of property interactions is optimal from an efficient property management perspective. The aim of this thesis is to examine property interactions in 3D-property complexes and how efficient property management can be achieved by property interactions. This is done by comparing the methods of property interaction in Swedish 3D-property complexes and Australian Part Strata-property complexes. In Part Strata a complex is managed as a unit. All stakeholders are bound by a management statement, and a management committee who manages the complex according to the rules stated in the management statement. Two case studies and relevant interviews were conducted in order to compare the systems and examine whether the Swedish system should take lessons from the Australian system. The two case studies were the Mall of Scandinavia-complex in Stockholm, Sweden and the Central Park East-complex in Sydney, Australia. The results show that there are several advantages of property interactions affecting property management in a positive way for all stakeholders in a complex. The key factors include efficient coordination and lower operating and maintenance costs. The conclusion is therefore that Swedish 3D-property complexes should take lessons from the Part Strata system and adopt a management committee and management statement.