Planning for your Home Renovation in 2024

Renovating your home in Singapore has become a pricier affair, courtesy of escalating costs for both materials and labour. Interior design specialists have mentioned a price jump of 10-15% per room category in 2023 and this increase is here to stay in 2024.

Purchasing a home is already a huge investment, often the largest one you'll ever make. Given the longevity of this investment, tailoring your home through renovation to match your personal style and needs is crucial, especially when considering resale properties. This article delves into the variables affecting renovation expenses, offers strategies for cost management, and explores financing avenues for your project.

Determining Factors that affect Renovation Expenses

The cost of home renovations in Singapore is influenced by several factors, including:

Brand New or Resale: Brand new Condos usually have close to zero renovation costs as most of the heavy lifting is done by the developers. As for BTOs, if you have opted into the Optional Component scheme, there will be little to be done as well. Most of the costs will come when you purchase a Resale HDBs or Private home, where costs such as hacking and giving the unit a fresh look. Renovation costs for resale flats can surpass those for new flats by up to 40%, primarily due to the need for major overhauls.

 Home Size: Larger homes naturally incur higher renovation costs. For homes below 100 sqm, expenses might hover around $30,000- $70,000 depending on various factors. A 3-room or 4-room HDB flat would cost more and a 5-room o flat reaching up to $70,000. 

Extent of Renovation: The scope of your renovation project significantly influences your budget. Costs escalate if you intend to modify structural elements, opt for custom carpentry or have very elaborate design elements such as fixtures that require intricate mechanisms.

Check out this Renovation Cost Calculator by Qanvast!  

Key Items that make up a Renovation  

Hacking: These involve structural changes, such as wall modifications, which vary in cost based on the complexity and scale of work.

Masonry: This would be items such as flooring, laying of tiles, related wet works. The Cost is largely dependent on the size of your home as well as choice of materials.

Carpentry: Custom furniture, like built-in wardrobes and kitchen cabinets, form a significant part of expenses, influenced by the design and size.

Hacking, Masonry and Carpentry will usually form the majority of what you would be spending for your entire renovation. Some other smaller but important works also include plumbing, electrical installations, Painting, Installing of Aircon and Compressor, finishes and last but not least, cleaning!

Additional Considerations when Budgeting for a Renovation

Bespoke Furniture

The cost of furniture, particularly custom-made pieces, can significantly vary based on the materials used and the complexity of the design. High-quality furniture, designed for longevity, usually comes with a higher price tag. Certain custom carpentry works such as building kitchen cabinets are unavoidable. However, you could consider purchasing items such as your Wardrobes, Study table and such off the shelves at a local furniture store if your home layout allows you to. That would save you a whole bunch of money.

Shipping and Installation Charges

The fees for delivering and installing items can differ based on the product's size, weight, and the distance it must travel. Although it may seem minor, these expenses can accumulate, potentially exceeding your planned budget for renovations. For example, tiles that are from Italy will cost more to ship over compared to tiles from China or Malaysia. Tiles that are 90X90 will cost more to install/lay compared to tiles that are 60X60.

Home Appliances

Items such as ceiling fans, light fixtures, air conditioning units, and kitchen gadgets can quickly increase your renovation expenses. It's crucial to ensure you have sufficient funds for these essentials to ensure your home operates smoothly. Many choose to save on some of these items such as Ceiling fans and Air conditioning units by getting cheaper brands. My personal take is to not over do this because poorly installed Fans and Air Conditioning units could cause major issues in the future that would cost you even more. If you do not wish to spend too much on these, pick a trusted and reliable model that is used and liked by many to prevent issues in the future.

Time Allocation

Consider the time commitment required for your renovation as well. Renovations often extend beyond their anticipated completion dates, so allocating extra time as a precaution against delays is wise. The expected timeline for HDB renovations remains at 10 to 12 weeks. Condo renovations typically conclude in eight weeks, with resale condominium refurbishments taking 10 -12 weeks as well. Even though many revocation project can be completed in less than 8 weeks even for a resale, it is good to plan in some buffer.

Reserve Funds for Unforeseen Expenses

It's very common to neglect the potential for hidden costs when budgeting for renovations in Singapore. Such unforeseen expenses may include relocating furniture, your contractor’s staff accidentally breaking something, the need to purchase additional materials unexpectedly due to an erroneous installation and such. Unforeseen circumstances are common sight in every renovation project. My personal recommendation is to allocation an additional 10-20% from what your initial renovation budget is, to be safe. You will unlikely exhaust the entire 10-20% extra you set aside, but you will most definitely need it if anything were to go awry.

Selecting a Competent Renovation Contractor or Interior Designer

Incorporate the potential savings by working with someone who is really good at their job. You know the saying “You get what you pay for”? Employing a skilled contractor and Interior designer can lead to significant savings in both money and time in the long run. Yes it might be a little more pricy up front, but a job done right from the get go is always better than fixing a poorly done job. Balance what you need versus what you want and get the basics done up well. The bells and whistles of a renovation project can wait.

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