Why Resale Flats Are More Expensive to Renovate

Uncover costly renovations for resale flats

When it comes to renovating a home, the cost is always a significant consideration. One of the most popular housing options in Singapore is the Housing and Development Board (HDB) resale flat, which offers more space and a prime location. However, renovating an HDB resale flat can be costly, and it is important to understand why. In this article, we will look into the factors that contribute to the higher cost of renovating an HDB resale flat, providing readers with accurate and factual information to help them make informed decisions when planning their home renovation projects.

The Key Differences Between BTO and Resale Flats

Refer to the table below to find out the differences between Built-To-Order and resale flats.

Factors	BTO Flat	Resale flat
Eligibility & availability	BTO flats are new public housing units offered directly by HDB. They are typically available in non-mature estates. They are targeted at first-time homebuyers who meet specific eligibility criteria, such as Singapore citizenship, age, property ownership, and income ceiling.	Resale flats are existing HDB flats that are sold in the open market by current flat owners. They are available in both mature and non-mature estates. You must apply for the HDB Flat Eligibility (HFE) letter to get assessed for your eligibility to buy, for CPF housing grants and HDB housing loans. Any previously owned properties must be sold or disposed of within six months. There is no income ceiling for purchasing a resale flat.
Price & affordability	BTO flats are generally priced lower compared to resale flats as they are sold directly by HDB at subsidised rates. These lower prices make BTO flats more affordable, especially for first-time buyers. Eligible buyers can avail themselves of various housing grants offered by the government to further reduce the purchase price.	Resale flats are typically priced higher than BTO flats due to factors such as location, size, age, and renovations. Market forces and negotiation between buyers and sellers determine the prices. However, resale flats offer immediate availability and flexibility in terms of location choice.
Waiting time & completion	BTO flats are sold during specific launch exercises, and the construction of these flats only begins after a sufficient number of units have been booked. Until then, buyers of BTO flats have to wait for a certain period, typically around four years, before the flat is completed and ready for occupation.	Resale flats are already constructed and occupied. Once the buyer and seller agree on the price and terms, the transaction can be completed relatively quickly, and the buyer can move in immediately after fulfilling all necessary paperwork and requirements.
Customisation & condition	BTO flats are brand new and come in standard configurations and finishes provided by HDB. Buyers have the opportunity to customize some aspects of the flat, such as flooring, wall tiles, and sanitary fittings, during the selection process. However, major structural changes are generally not allowed.	Resale flats come in various designs, layouts, and conditions as they have been previously occupied. Buyers have the flexibility to choose flats with desired features, renovations, and furnishings. Renovation options are more extensive in resale flats compared to BTO flats.
Lease tenure & remaining lease	BTO flats typically come with a 99-year lease, which means buyers will have the right to use the flat for 99 years from the date of the lease. The remaining lease for BTO flats is the full 99 years.	The remaining lease for resale flats depends on the age of the flat. As HDB flats have a 99-year lease, the remaining lease decreases with time. Buyers should consider the remaining lease when purchasing a resale flat, as it affects the flat’s value and eligibility for certain housing financing options.

Factors

BTO Flat

Resale flat

Eligibility & availability

BTO flats are new public housing units offered directly by HDB.

They are typically available in non-mature estates.
They are targeted at first-time homebuyers who meet specific eligibility criteria, such as Singapore citizenship, age, property ownership, and income ceiling.

Resale flats are existing HDB flats that are sold in the open market by current flat owners.

They are available in both mature and non-mature estates.
You must apply for the HDB Flat Eligibility (HFE) letter to get assessed for your eligibility to buy, for CPF housing grants and HDB housing loans.
Any previously owned properties must be sold or disposed of within six months.
There is no income ceiling for purchasing a resale flat.

Price & affordability

BTO flats are generally priced lower compared to resale flats as they are sold directly by HDB at subsidised rates.
These lower prices make BTO flats more affordable, especially for first-time buyers.
Eligible buyers can avail themselves of various housing grants offered by the government to further reduce the purchase price.

Resale flats are typically priced higher than BTO flats due to factors such as location, size, age, and renovations.
Market forces and negotiation between buyers and sellers determine the prices.
However, resale flats offer immediate availability and flexibility in terms of location choice.

Waiting time & completion

BTO flats are sold during specific launch exercises, and the construction of these flats only begins after a sufficient number of units have been booked.
Until then, buyers of BTO flats have to wait for a certain period, typically around four years, before the flat is completed and ready for occupation.

Resale flats are already constructed and occupied.
Once the buyer and seller agree on the price and terms, the transaction can be completed relatively quickly, and the buyer can move in immediately after fulfilling all necessary paperwork and requirements.

Customisation & condition

BTO flats are brand new and come in standard configurations and finishes provided by HDB.
Buyers have the opportunity to customize some aspects of the flat, such as flooring, wall tiles, and sanitary fittings, during the selection process.
However, major structural changes are generally not allowed.

Resale flats come in various designs, layouts, and conditions as they have been previously occupied.
Buyers have the flexibility to choose flats with desired features, renovations, and furnishings.
Renovation options are more extensive in resale flats compared to BTO flats.

Lease tenure & remaining lease

BTO flats typically come with a 99-year lease, which means buyers will have the right to use the flat for 99 years from the date of the lease.
The remaining lease for BTO flats is the full 99 years.

The remaining lease for resale flats depends on the age of the flat.
As HDB flats have a 99-year lease, the remaining lease decreases with time.
Buyers should consider the remaining lease when purchasing a resale flat, as it affects the flat’s value and eligibility for certain housing financing options.

BTO flats offer affordability, customisation options, and a longer lease tenure but come with a waiting period for completion. Resale flats, on the other hand, provide immediate availability, a wide selection range, and flexibility in location but generally have higher prices and a shorter remaining lease. The choice between BTO and resale flats depends on individual preferences, financial considerations, and immediate housing needs.

What’s the Truth About their Renovation Costs?

Renovation costs for BTO and resale flats in Singapore can vary significantly due to several factors. Explore the key differences in renovation costs for these two types of housing options.

BTO Flats

The renovation costs for BTO flats tend to be relatively lower compared to resale flats due to the following reasons:

1. 1. 1. BTO flats come with standard finishes, including basic flooring, wall tiles, and sanitary fittings. These finishes help reduce the need for major renovations.
    2. BTO flat owners are generally not allowed to make major structural changes due to HDB guidelines. This limitation helps reduce renovation costs because you are not allowed to modify the flat’s layout and structure.
    3. Since BTO flats are new, the scope of required renovation work is typically less extensive compared to resale flats. Renovations may focus more on personal preferences, such as painting, adding built-in cabinets, or minor modifications.

Resale Flats

The renovation costs for resale flats can be higher due to these reasons:

1. 1. 1. Resale flat owners are free to customise their flats according to their desired changes in layout or design. The age of resale flats also contributes to higher renovation costs, as older flats may require more repairs or upgrades.
    2. Resale flats’ conditions depend on the previous owners’ upkeep and maintenance. Renovation costs may vary based on its existing state, i,e, the need for repairs, replacement of fixtures, and refurbishment of outdated components.
    3. Buyers of resale flats often desire personalised aesthetics, which can involve significant renovation work, e.g., changing floorings, reconfiguring spaces, upgrading electrical or plumbing systems, and adding new fixtures.

Are the Cost Differences Avoidable?

The cost differences between renovation expenses for Built-to-Order (BTO) and resale flats in Singapore are generally influenced by various factors, many of which were discussed above. While these differences are inherent to the nature of these housing options, certain aspects must be considered to manage and minimise the cost disparities.

1. 1. 1. Standardised finishes in BTO flats
    2. Design and renovation planning
    3. Prioritising renovation requirements
    4. Research and comparison
    5. Government assistance and schemes

Yes, the cost differences exist, but they are not entirely avoidable. Resale flats offer more customisation options and may require additional renovations due to their existing condition and age. But by prudent planning, research, and exploring available government assistance schemes, you can make informed decisions.

Cost Breakdown of HDB Resale Renovations

Here is a breakdown of estimated renovation costs for HDB resale flats, compared side-by-side with BTO renovation costs:

	HDB Resale Flats	BTO Flats
3-room	62,700 to 71,800 SGD	45,800 to 55,700 SGD
4-room	60,720 to 72,500 SGD	49,500 to 62,800 SGD
5-room	77,600 to 97,800 SGD	55,000 to 69,000 SGD

The costs provided are approximate ranges and can vary based on numerous factors. These estimates serve as a general guide only. It is best to consult an interior design company in Singapore to get detailed quotations, so you would know the accurate cost estimates tailored to your functionality needs and design preferences.
When planning your renovation, it is important to consider factors such as the extent of work required, desired enhancements, and budget constraints. Engaging a reputable renovation contractor and interior design firm can help you manage costs effectively. Review multiple quotations, evaluate the work scope, and check their credentials before deciding.

Tips and Tricks to Help you Save with your Resale Renovation

We understand that homeowners planning to renovate their HDB resale flats often look for ways to save on renovation costs. Here are some tips and tricks that can help Singaporean homeowners save with their resale renovation:

1. 1. 1. Begin by setting a realistic budget for your renovation project.
    2. Take the time to gather ideas, explore different designs, and identify cost-effective materials and suppliers.
    3. Research prices, compare quotations from multiple contractors, and seek recommendations.
    4. Prioritise works such as electrical rewiring, plumbing repairs, waterproofing, and structural integrity.
    5. Consider reusing and repurposing existing fixtures, furniture, and materials whenever possible, i.e. repainting kitchen cabinets or reupholstering furniture.
    6. Work with an interior designer to optimise your layout and maximise your space.
    7. If possible, consider taking on smaller renovation tasks yourself, such as painting, minor repairs, or installing simple fixtures.
    8. Look into government schemes that provide financial assistance or subsidies for renovation works, such as Home Improvement Programme (HIP) and Enhancement for Active Seniors (EASE). Check if you are eligible for these schemes to help offset renovation costs.
    9. Maintain your HDB resale flat regularly to prevent significant concerns or damages.
    10. Keep yourself updated on the latest renovation trends, materials, and cost-saving tips. Attend exhibitions, read online resources, or seek advice from interior designers.

Conclusion

It is evident that renovating HDB resale flats can be more expensive due to various factors such as customisation requirements, existing conditions, and the age of the flat. At Style+Space, a leading interior design firm in Singapore, we understand the concerns of homeowners planning to proceed with their HDB resale renovation journey. That is why we are committed to offering cost-effective solutions without compromising quality and design.

We provide an affordable option for homeowners to transform their resale flats into stylish and functional spaces with our HDB Resale Interior Design & Renovation Package Promotion. Our package prices are significantly lower compared to the estimated renovation costs, so you can achieve your dream home within your budget.

Ready to start your HDB resale renovation project? Contact us here for more information on our design packages or to get answers to your questions. Our team is here to guide you every step of the way.