Less money left for HDB renovation
By Cheryl Lim

MORE Housing Board resale flat buyers are having to forgo lavish renovations as the property market heats up.

Said Ms Rebecca Wong, deputy editor of Home & Decor: "In the last two years, it was the condominium renovation market that was booming.

"The high COV meant that HDB resale buyers didn't have much money left to splurge on renovations."

High COVs have also narrowed the price gap between resale HDB flats and condominiums, pushing many prospective buyers towards the latter, added Ms Wong.

Mr Jeffrey Lin, 36, managing director of Free Space Intent, who's been in the business for 11 years, said that most high-end renovations are done for owners of private homes nowadays.

"About two years ago, 60 per cent of clients who spent six-digits on renovations live in condos and landed property and 40 per cent in HDB.

"Now, 70 per cent of my high-end renovation clients live in private property and 30 per cent in HDB," he said.

Mr Lin heard "feedback" from his HDB clients that their flats were costly and they had little left for renovation.

"Perhaps some of the others feel they may as well get a condo instead, causing the shift in demographic," said Mr Lin.

Mr Jaesonn Tan, of Baroque D.zign, said HDB renovations typically cost between $30,000 and $50,000. A $100,000 project would be considered high-end.

The median cash-over-valuation (COV) in the second quarter this year was $30,000.

But five-room flats in the central zone had a COV premium of $89,000 - the highest across all flat types and towns. Bukit Timah five-room flats were next with a median COV of $80,000.

It is worth noting, however, that there were fewer than 20 resale transactions for these areas and flat types, so the figures "may not be representative", HDB said.

HDB also offered a total of 13,500 new flats last year and said it is ready to supply more flats this year if there is sustained demand.

This article was first published in The New Paper.