How Much Are Renovation Contractors in Singapore in 2023?

If you are planning to renovate your home in Singapore, you may be wondering how much it will cost and whether you can use your CPF savings to cover the expenses. Renovation contractors' prices can vary significantly depending on several factors, including the extent of the renovation, materials used, location of the property, and more. 

In this article, we will delve into the average costs of renovation contractors in Singapore in 2023 and explore whether CPF savings can be used for renovation purposes.

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Understanding the Cost of Renovation Contractors

Renovation costs can be a significant aspect of any home improvement project. It's crucial to have a clear understanding of the average costs associated with renovation contractors in Singapore to plan your budget effectively. While the prices can vary based on individual preferences, here are some estimates to help give you an idea of the expenses involved:

1. BTO Flats: For a new Build-To-Order (BTO) flat, the average spending on renovations is around S$44,000. This figure takes into account basic renovations like painting, flooring, electrical works, and plumbing. However, it's important to note that depending on your desired customization and the extent of the renovation, the cost can go up significantly.
2. HDB Resale Flats: If you are renovating an HDB resale flat, the average cost can be higher than that of a BTO flat. On average, homeowners spend around S$67,000 on renovation expenses for an HDB resale flat. This higher cost is often due to the need for more extensive renovations, such as hacking walls, creating additional rooms, and upgrading fixtures.

It's crucial to keep in mind that these figures are just estimates and that the actual cost of your renovation project may vary. Always consult with multiple contractors and obtain detailed quotations tailored to your specific requirements before finalizing your budget.

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Use of CPF for Renovation Purposes

The Central Provident Fund (CPF) is a social security savings plan established by the Singaporean government to help citizens fund their retirement, healthcare, and housing needs. While CPF savings can be used for various purposes, such as purchasing a property or paying for education, there are restrictions when it comes to using CPF for renovation purposes.

CPF savings cannot be used for renovation, improvement, or repair work for your property. The government’s position is that CPF savings should be preserved for long-term financial security rather than short-term home improvement needs. Therefore, you are not allowed to use CPF to repay a renovation loan or directly fund your renovation project.

However, there is an exception for those living in built-to-order (BTO) HDB flats. CPF can be used to offset the cost of renovation for BTO flats through the Home Protection Scheme (HPS). The HPS provides basic insurance coverage for HDB flat owners using their CPF savings to pay for the flat. The insurance coverage can be used to offset the cost of renovation in case of unfortunate events such as death, terminal illness, or total permanent disability.

It's crucial to note that regulatory rules can vary, and it is always best to check with the appropriate government agency or a professional advisor to obtain accurate and up-to-date information regarding CPF usage for renovation purposes.

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Factors Influencing Renovation Costs

Now that we have established the average costs of renovation contractors in Singapore and clarified the use of CPF for renovation purposes, let's explore some key factors that can influence the overall cost of your renovation project:

1. Scope of Renovation: The extent of the renovation work you desire will significantly impact the cost. If you are planning a minor renovation, such as painting and basic fixtures replacement, the costs will be relatively lower compared to a major overhaul involving extensive hacking and structural changes.
2. Materials and Finishes: The quality of materials and finishes you choose for your renovation project also plays a critical role in determining the cost. High-end materials and designer fixtures tend to be more expensive compared to standard options. It's recommended to strike a balance between quality and budget constraints to achieve the desired outcome.
3. Size of Property: Naturally, the size of your property will affect the total cost of renovation. Renovating a larger space requires more materials, labor, and time, resulting in higher expenses.
4. Location: The location of your property can also influence renovation costs. Contractors' rates may vary depending on whether your property is situated in a prime location or a more remote area.

When planning your renovation, it's important to consider these factors and communicate your requirements clearly with the contractors to obtain accurate quotations tailored to your needs.

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Conclusion

Renovation contractors' costs in Singapore can vary depending on the scope of the project, materials used, property size, and location. While the average spending on renovations for a new BTO flat is approximately S$44,000, HDB resale flats can cost around S$67,000.

It's important to note that CPF savings cannot be used for renovation purposes, except for offsetting the cost of renovation in case of BTO flats through the Home Protection Scheme (HPS).

When embarking on a renovation project, it's crucial to plan your budget effectively and get detailed quotations from multiple contractors. By understanding the various factors influencing renovation costs and being aware of CPF limitations, you can make informed decisions and create a beautiful living space that reflects your personal style and preferences.