Benchmarking Performance of Multi-owned Housing Management in Hong Kong: A DEA Approach

Unlike single-family houses, management of multi-owned housing (MOH) is a more complicated process. There are different modes of MOH management, including owner management, third-party management and co-management. While many... [ view full abstract ]

Unlike single-family houses, management of multi-owned housing (MOH) is a more complicated process. There are different modes of MOH management, including owner management, third-party management and co-management. While many theoretical perspectives like agency and transaction-cost theories have been used to differentiate these management modes, little research has been dedicated to the empirical comparison. In fact, cases of mismanagement of MOH are common in Hong Kong and other Asian cities, leading to accelerated urban decay and augmented confrontations between property owners, users and property management agents. To promote better housing management, the performance of MOH management under different management modes should be evaluated and compared so stakeholders can make better-informed decisions.Unlike previous studies which employed input-based or output-based indicators only, this study evaluates and benchmarks the management performance of 37 MOH developments in Hong Kong using a more holistic approach. A data envelopment analysis (DEA) is conducted on a number of input and output items to generate the overall performance index for each development. Based on the research findings, we identify the most preferable mode of MOH management, diagnose areas of inefficiency and offer insights for performance improvement.