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Singapore

Renovating your home? Be prepared for price hikes, project delays

Homeowners can expect renovation prices to increase by up to 20 per cent next year amid strong demand, some renovation firms warned. 

Renovating your home? Be prepared for price hikes, project delays

Renovation firms are currently seeing interest in their services rise by at least 20 per cent.

SINGAPORE: Expected price increases and likely project delays will not stop homeowners from engaging the services of renovation companies. 

The demand is expected to remain strong next year, said observers, even as some renovation firms warned of price increases of up to 20 per cent. 

It could force homeowners to choose ready-made cabinets or decorative works over custom-made ones.

This comes as renovation companies here deal with rising material and manpower costs. 

RISING MATERIAL, LABOUR COSTS 

The price of cement, for example, has increased by up to 20 per cent. Steel, a key material for construction, has gone up about 50 per cent. 

The shipping of raw materials also does not come cheap. 

Ms Jillien Lum, senior designer at Renozone Interior Design House, said: “The shipping of raw materials, like cement and tiles, will actually add up and increase the renovation costs by about approximately 10 per cent.”

Renovation firms are currently seeing interest in their services rise by at least 20 per cent, as homeowners push to have their renovations done before the new Goods and Services Tax (GST) increase kicks in on Jan 1. 

Meanwhile, some observers believe the renovation industry may need another six to eight months to catch up on the backlog of projects as a result of the COVID-19 pandemic. 

One new Woodleigh flat, for instance, will be welcoming its first owners soon, after a two-month holdup in completing the renovation. Many of the furnishings in the flat are custom-made.

D Editors, the firm behind the project, blamed the delay on a shortage of skilled subcontractors and the coronavirus situation. 

BACKLOG OF RENOVATION PROJECTS

Ms Kat Tan, founder of D Editors, said: “I believe that it was also due to COVID that we are lacking a lot of skilful craftsmen in this trade, and therefore, it is not easy to find the right people to support us in terms of renovation or getting things done in the right way. 

“And we can’t possibly engage part-timers, part-time subcontractors to finish up the job because it will not be fair to the owner. At the same time, we are putting a risk to our quality."

The pool of tilers and carpenters has shrunk since the coronavirus outbreak started. 

Some had retired, while others were foreign workers who have since left Singapore.

“Overall, for the interior renovation industry, we are about 80 per cent reliant on foreign manpower,” said Ms Gena Thien, director of the Renovation Contractors and Material Suppliers Association, which will be launching tilting and carpentry courses next year. 

“With that, I think there's a strong need to nurture local manpower. We need to be realistic due to the nature of our workforce. 

“So this might take time, and we are putting in a lot of effort to do so with the government.”

Source: CNA/ca

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