Are Home Renovation Costs Rising in Singapore?
Yes.
While the supply chain disruptions caused by COVID-19 have subsided, costs remain higher than pre-pandemic levels due to inflation, particularly in raw materials and labour.
In Singapore, manpower costs is a significant factor driving up renovation costs.
Do Condo and Landed Renovation Cost More than HDBs?
Typically, yes.
This can be attributed to:
1) Larger floor areas resulting in higher full renovation costs, as there is more space to work on.
2) Taller floor-to-ceiling heights which increases the renovation costs for wall-related works e.g. painting, hacking, partitioning etc.
3) Space flexibility e.g. Landed property owners have the option to conduct alterations and additions (A&A) which drives up renovation costs.
4) Condo MCST renovation timing restrictions leading to higher manpower costs due to lower efficiency e.g. most condos only permit renovation works to be conducted from 9am – 5pm on weekdays.
☝️ In short, renovation costs are not higher because of the property type, but rather the scope of work.
BUT…
Dishonest renovators may attempt to inflate prices under the assumption that private property owners are more willing to spend.
This is why it is SUPER crucial for you to meet and compare quotes from at least 5 renovators to make an informed decision.
Pro-Tip: Work with CaseTrust-accredited renovators! They are committed to price transparency and fair consumer policies e.g. providing itemised quotations with clear breakdowns, which helps to minimise the chances of hidden costs.
The Renovation Costs for New Condos can be Cheaper
In most cases, new condos can actually be cheaper to renovate as they often come with well-done fittings such as flooring, kitchen cabinets, functional bathrooms, and even wardrobes.
Why Does Resale Renovation Cost More than New Properties?
Again, it depends on the renovation scope.
Resale renovation usually costs more due to additional works required to update or replace existing features.
For example:
1) Hacking and dismantling of old fittings and fixtures
2) Rectification works for wear and tear e.g. fixing waterproofing, electrical, plumbing issues etc.
Our Methodology for Calculating Average Renovation Costs in Singapore (Why is it Accurate?)
How it Works:
We gather actual itemised renovation materials and labour costs from renovators in Singapore. Inflation has also been accounted for as these are based on current, real-world costs.
From there, we determine the realistic lower and upper renovation cost ranges by simulating logical scenarios based on the extensiveness of renovation cost components such as hacking, masonry, carpentry, plumbing, electrical, and common finishing works (air-conditioning, painting, partition, door, and window works).
Finally, we apply a reasonable mark-up of 15% to the renovation cost prices to reflect the standard industry profit margins for interior designers.
Why do Most Sources Provide Inaccurate Estimates of Renovation Costs?
Most sources estimate costs based on the average or median renovation budgets derived from their user base or survey results.
This approach leads to inaccuracies due to confounding factors, such as:
1) Small Sample Size: Their user base may not be representative of the wider market.
2) Income Bias: For example, It is reasonable to assume that new condo homeowners typically have higher incomes and may be more willing to spend on renovations. Hence, if we solely rely on average or median historical data, it will only be reflective on spending habits rather than the true costs of materials and labour. Ultimately, it leads homeowners to believe that condo renovations are inherently more expensive, when in reality, they can often be more affordable (as detailed below in this article). Such misconceptions can lead homeowners to budget more than what is actually required for their renovation.
3) Variability of Renovators: Interior firms or even individual renovators from the same firm can charge at different price points based on their expertise and reputation e.g. a design-centric interior designer would charge higher professional fees as compared to a renovation main contractor. Simply averaging renovation costs from multiple renovators may lead to skewed results even if outliers are excluded.
4) Scope of Renovation: The scope of renovation projects can vary widely leading to significant differences in renovation costs. Simply taking the higher and lower percentiles of averages can be misrepresentative of actual renovation costs.
Our Goal
Our methodology avoids perception-based estimates and instead calculates fair and realistic prices grounded in actual material and supply costs.
This data-driven approach provides a clearer understanding of renovation expenses, eliminating the potential inaccuracies introduced by skewed averages or medians.
Ultimately, HomeMatch, as the Official Marketing Partner of CaseTrust, aims to assist homeowners in making well-informed decisions – in this case, enabling you to decide on a fair renovation budget.
According to CASE, the renovation industry is consistently one of the industry that receives the most complaints.
That's why...
We're commited to helping homeowners find Trusted & Suitable renovators
Here are the facts:
• We onboard only CaseTrust-accredited renovators with above 4 stars reviews
• We then painstakingly screen them on an individual level to ensure full transparency on their profile, reviews, and past projects
• We have the largest database of individual renovator profiles and we can match you with specific renovators who meet your specific needs
• Finally, you'll be protected before, during, and after renovation under the Safest-Smartest Assurance e.g. 100% deposit guarantee, contract review, warranty, itemised quotation, progressive payments etc.
👇 Let us help!
