Why are Resales Always More Expensive to Renovate?
You might have noticed it when doing your research. Or got a couple of quotes from designers or contractors you’ve met. No lie – resales can rack up much more compared to new BTOs or condo units when it comes to renovation costs.
How much more expensive, though?
Interior Firm: Meter Square
Renovation Cost: $70,000
We’re talking about almost a 40% hike. Based on completed projects on Qanvast, an average renovation cost for a new HDB in 2018 is about $48,000, whilst for resale flats this amount goes up 41.6% to $68,000. Prices jump even higher with condominiums, with average prices for new renovations at $56,000 and resales at a whopping $84,000 - a 50% increase*.
Interior Firm: Versaform
Renovation Cost: $100,000
But what factors exactly contribute to this increase? And what are some ways to keep your budget in check whilst renovating a resale home? Here, we dive into the details:
So, what racks up the costs in resale homes?
1. Dismantling and demolishing works
Unless you’re completely fine with whatever the previous homeowner has left behind, you’re probably going to re-do from scratch. And that means having to dismantle, hack away or remove any existing built-ins or features.
Interior Firm: Stylemyspace
Renovation Cost: $53,000
This component alone can rack up thousands, depending on the scale you’re looking at. And if you’re thinking of removing floors, tiles and wall coverings on top of carpentry pieces, be prepared to spend even more.
2. Repairs or refurbishing work
Considering someone has lived in the space, day-in-day-out for an extended period of time, wear and tear is inevitable in certain areas. Think clogged pipes, leaking air-con trunking, damaged parquet floors or worse, pest infestations.
Interior Firm: Fineline Design
Renovation Cost: $65,000
Of course, depending on the age of the flat and the previous homeowner’s maintenance habits, some resales will be less troublesome than others. Nevertheless, repairs can add up a hefty sum in any resale renovation. After all, even though you’re buying an old space, you'll want your home to work like new.
3. Unexpected complications
Unlike newly-built homes where the house layout and details are clearly known, things aren’t as straightforward with a resale. The previous owner might have done some renovation works on his/her own, based on his/her needs. But that doesn’t mean those changes would benefit you!
Interior Firm: KDOT Associates
Renovation Cost: $50,000
As such, sometimes complications may crop up, which can add on to your renovation price tag. For instance, the seller might have rewired the electrical cables or changed the placement of electrical outlets in a way that wouldn’t make sense in your new layout. You’ll have to make changes and tackle these issues along the way.
4. Expertise needed for conserving certain features
More for older resale properties like walk-up apartments or post-war HDB flats, extra work might be needed for conserving various delicate features. For example, ventilation blocks – which might be unique to the property but can be aged and require restoration work.
Likewise, older properties such as these might have certain features that are hard to find in today’s market (e.g. traditional 3/4 length shutter windows), which could potentially cost more to procure and install.
5. Resales are (usually) larger than new ones
And on top of all that, also consider the fact that most resale properties tend to be larger than their brand-new counterparts. An average 4-room HDB flat built in the early 1990s spans about 100 sqm, while a similar BTO today has an area of 90 sqm. The same goes for condominium units, which generally see larger square footage in older properties compared to newly built ones.
Interior Firm: Charlotte's Carpentry
Renovation Cost: $116,000
How does that all pan out for your renovation? More areas to work on = more costs incurred as well.
6. And... you’ve still got to build up from scratch
Think of it as getting one and a half renovations. The first part is simply turning your resale flat into its bare, original skeleton. Next is then actually filling up the space with the design you’ve wanted. Yep, not easy – nor cheap.
Interior Firm: Third Avenue Studio
Renovation Cost: $104,000
While it’s hard to scrimp and save on repair and demolition works, what you can control is how you design your space. If you don’t have a lot after spending a chunk on revamping the flat to its original state, here are some tips to help you make the most of things:
Design Tricks to Help You Save on Your Resale Renovation
Have less built ins
Interior Firm: Metier Planner
Renovation Cost: $29,000
We have mentioned it before - carpentry is often one of the costliest components in a renovation. One way of saving on your resale is simply cutting down on the amount of built-ins and opting for simpler finishes and more affordable, loose carpentry which you can switch out over time.
Keep original features (if they aren't too worn out)
Interior Firm: Style Living Interior
Renovation Cost: $65,000
As they say – ‘if it ain’t broke, don’t fix it’. If that parquet flooring or ceramic tiling looks decent and not too worn, keep it. Perhaps spend a little on repairing certain cracks or polishing things up, but you’ll save a lot on having to re-do everything again.
Think long term
Interior Firm: Cozy Ideas Interior Design
Renovation Cost: $33,000
Good design is also about knowing what your priorities are. Are you planning to stay for the long term, or moving out in a couple of years time? Based on that, determine the extent of works you require. If this isn’t your forever home just yet, perhaps consider skimping out on that luxurious (but pricey) marbled countertop, or major structural works which could add up to a sum.
*Disclaimer: All renovation costs listed do not include furniture and appliances.
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