The Financial Management Practices of Condominium Corporation in Selected Areas of Quezon City

Abstract

Based on the study made by the Colliers International Philippines, residential condominium units hit a record high in 2017, with Philippine property developers selling a total of 52,600 units throughout Metro Manila, up from the 42,000 units sold in the previous year or 24% higher, and the highest historically for the country’s capital. The growing need for residential space and the lack of developable land in urban areas in the Philippines have led to condominium developments which are further becoming common in local real estate. Condominium nowadays is the most convenient way of having your own place compared to buying a house and lot. The shift towards smaller living spaces is mediated by the need for an accessible, manageable, and independent lifestyle created by the business industry.

The main objective of this study was to assess the effectiveness of the financial management practices of the condominium corporation in selected areas of Quezon City. Understanding the financial management practices of a condominium corporation is important to unit owners as well as to those who are planning to buy or invest in the same since owning a condominium unit entails a perpetual obligation to pay a monthly association dues, thus, knowing how these funds are being utilized and allocated to its proper usage are an imperative consideration in their decision making. The researcher applied the descriptive method of research and the criteria used includes, financial planning, working capital management, financial reporting, and financial control and monitor. Data were gathered primarily through survey questionnaires and secondarily through an unstructured interview with stakeholders.