How Much Should You Really Budget for Home Renovation in Singapore?

Home renovation in Singapore is rarely cheap, and for many homeowners, the final bill often ends up higher than expected. Whether you are collecting keys to a new BTO flat or renovating a resale unit, the question is no longer just what design you want, but how much you realistically need to budget.

With rising material costs, labour shortages, and longer renovation timelines, renovation planning today requires more financial foresight than it did a few years ago. Many homeowners only start thinking about financing after the quotation stage, but by then, options can feel rushed or limited.

How Much Should You Really Budget for Home Renovation in Singapore?

This guide breaks down realistic renovation costs in Singapore, explains why some homes cost significantly more to renovate than others, highlights common hidden expenses, and shows how a renovation loan can help bridge the gap when savings are not enough.

What Are the Realistic Renovation Costs in Singapore Today?

Renovation costs vary widely depending on the type of home, whether it is brand new or resale, and the scope of work involved. As a general rule, resale flats tend to cost more to renovate due to hacking, rewiring, plumbing upgrades, and restoration work.

Below is an indicative renovation cost range based on common home types in Singapore.

Indicative Renovation Costs by Home Type

Home Type	Estimated Renovation Cost
New 3-room HDB flat	S$36,000 to S$43,000
Resale 3-room HDB flat	S$51,000 to S$61,000
New 4-room HDB flat	S$51,000 to S$61,000
Resale 4-room HDB flat	S$64,000 to S$80,000
New 5-room HDB flat	S$67,000 to S$82,000
Resale 5-room HDB flat	S$84,000 to S$97,000

These figures are not fixed prices, but they reflect what many homeowners realistically spend today for a standard, mid-range renovation. Premium designs, extensive carpentry, or custom features can push costs higher.

Resale flats often require more preparatory work before any design improvements can begin.

Why Resale Flats Usually Cost More Than BTOs

One of the biggest budgeting mistakes homeowners make is assuming all flats of the same size cost roughly the same to renovate. In reality, whether a unit is new or resale makes a significant difference.

Resale flats often require more preparatory work before any design improvements can begin. This includes hacking old tiles, removing existing carpentry, replacing ageing electrical wiring, upgrading plumbing, and repairing wear and tear accumulated over the years.

In contrast, BTO flats start with a clean slate. While homeowners may still customise flooring, storage, and fittings, the absence of demolition and major rectification work helps keep overall costs lower.

This difference is why renovation budgets for resale flats are typically tens of thousands of dollars higher than for new flats, even when the final design looks similar.

Hidden Renovation Costs Many Homeowners Underestimate

Even with a detailed quotation, renovation budgets often creep upwards. This usually happens because certain costs are overlooked during early planning.

Commonly underestimated expenses include electrical upgrades for additional power points, concealed wiring, and smart home systems. Plumbing adjustments for kitchen and bathroom reconfiguration can also add up quickly, especially in older flats.

Carpentry changes during renovation are another frequent budget leak. Once work begins, homeowners may decide to add cabinets, adjust layouts, or upgrade materials, all of which increase costs.

There are also practical expenses such as permit fees, professional cleaning after renovation, temporary accommodation if you cannot stay in the unit, and contingency buffers for unforeseen issues.

A safe approach is to set aside an additional 10 to 15 percent of your renovation budget as contingency.

How Much Should You Actually Budget?

Instead of focusing only on renovation quotations, it helps to think in terms of total affordability.

A practical renovation budget should consider:

• Your available cash savings

• Monthly household income

• Ongoing commitments such as mortgage, car loans, and childcare

• A safety buffer for emergencies
  

If paying entirely from savings leaves you with little or no emergency fund, the renovation may become financially stressful even after it is completed. This is where structured financing can be a responsible planning tool rather than a last-minute solution.

When Savings Are Not Enough, How a Renovation Loan Helps

When Savings Are Not Enough, How a Renovation Loan Helps

Many homeowners today choose a mix of savings and renovation loans to manage cash flow more comfortably. Instead of draining savings upfront, a renovation loan allows costs to be spread out over time.

Renovation loans are commonly used to cover larger-ticket renovation components such as carpentry, electrical works, and plumbing, while savings are reserved for furnishings or unexpected expenses.

In Singapore, licensed moneylenders operate under Ministry of Law regulations, which cap interest rates and fees. This ensures that borrowing remains transparent and predictable, provided repayments are planned responsibly.

The key is not to borrow the maximum amount available, but to borrow based on what fits comfortably within your monthly budget.

Planning Your Renovation Budget More Wisely

Before committing to a renovation plan, it helps to step back and review the numbers calmly.

Ask yourself whether your renovation cost is a “want” or a “need” at its current scale. Consider phasing non-essential works over time instead of doing everything at once. Prioritise functionality first, and aesthetics second.

Most importantly, avoid rushing into financing decisions. Comparing options early gives you clarity and control, rather than pressure at the final stage.

Conclusion

Renovation in Singapore is a major financial decision, not just a design project. Understanding realistic renovation costs, recognising where expenses tend to rise, and planning your funding properly can prevent unnecessary stress down the road.

A well-thought-out renovation budget balances ambition with affordability. Whether you rely on savings, financing, or a combination of both, the goal is to enjoy your home without compromising your financial stability.

If you are planning a renovation and want to explore structured, transparent financing options, 1133 Moneylenders offers renovation-friendly personal loan solutions designed to help homeowners manage renovation costs responsibly and within regulatory guidelines.

Frequently Asked Questions (FAQs)

1. How much does it really cost to renovate a HDB flat in Singapore?

The cost of renovating a HDB flat in Singapore typically ranges from about S$36,000 for a new 3-room flat to close to S$100,000 for a resale 5-room flat, depending on the age of the unit and the scope of work. Resale flats usually cost more due to hacking, rewiring, plumbing upgrades, and repair works that are not required for new flats.

2. Why are renovation costs for resale flats higher than BTO flats?

Resale flats often require extensive preparatory work before renovation can begin. This includes removing existing fittings, replacing old electrical wiring, repairing water damage, and updating plumbing systems. In contrast, BTO flats start with a clean base, which reduces labour and material costs, making renovations more affordable overall.

3. What are the most commonly overlooked renovation expenses?

Homeowners frequently underestimate costs related to electrical upgrades, plumbing changes, additional carpentry, and material upgrades. Other commonly missed expenses include permit fees, post-renovation cleaning, temporary accommodation, and contingency costs for unexpected issues. Setting aside an additional 10 to 15 percent of the renovation budget is generally recommended.

4. Should I use savings or take a renovation loan for my home renovation?

This depends on your cash flow and financial buffer. If paying fully in cash leaves you with little emergency savings, using a renovation loan to spread costs over time may be a more balanced approach. Many homeowners combine savings with a renovation loan so they can maintain liquidity while managing renovation expenses responsibly.

5. How much can I borrow for a renovation loan in Singapore?

The amount you can borrow depends on your income level and the lender’s assessment. For regulated loans from licensed moneylenders, borrowing limits are governed by Ministry of Law guidelines.

Borrowers earning S$20,000 or more annually may borrow up to six times their monthly income, while lower-income limits apply for those earning less. It is important to borrow within a level that fits comfortably into your monthly budget.