'Condo renovation tax'? Entrepreneur explains why reno is pricier for condos than HDB flats

Renovating your home can be costly, every homeowner knows that.

However, it seems that those living in condominiums are quoted higher prices than those staying in HDB units.

Local entrepreneur Chris, the founder of Deconstruct, suggested that the reason behind this is the idea of the "condo renovation tax".

Deconstruct is a company that refers homeowners to "genuinely reliable interior designers and contractors" according to their home renovation preferences.

On Monday (May 1), Chris explained what the condo renovation tax is all about in an 84-second-long TikTok video.

@deconstruct.sg Why condo renovation more expensive than HDB? #deconstructsg #fyp #sgtiktok #resale #sgresale #resalesg #bto #millennial #sgrenovation #renovationsg #sghome #homesg #sgproperty #propertysg #sgmrt #mrtsg #interiordesignsg #sginteriordesign #sgcontractors #contractorssg #resalebuywhereleh #sghorrorrenostories #renovationtips #therealstartuplifesg #renovationstuffsg ♬ original sound - deconstruct.sg

He found it "quite funny" when a condo homeowner was perplexed after being quoted a different price for renovation works as compared to her friend who lives in an HDB flat.

Supposedly, their renovation requirements were "about the same" but the condo owner received a much higher quote.

If you are to believe Chris, this is down to the condo renovation tax.

"All else equal, you should expect to pay about 20 per cent more [as a condo homeowner]," he claimed.

According to Chris, HDB flat ceilings go up to 2.4 metres but condo ceilings are usually higher, at 2.8 metres.

So doing up full-height built-in furnitures like cabinet would, understandably, be more expensive in condos with more raw materials and labour cost involved.

Labour cost is another factor that jacks up the price of renovation quotes for private homes, according to Chris.

Chris states that condos seem to have more restrictions and rules on working hours, with renovation works only allowed on weekdays and between 9am and 5pm.

This could be true given how an estate's house rules may stipulate the time and duration of renovation work that is allowed during the week.

It's different for HDB flats where renovation companies "literally can go in and out anytime they want" claims Chris.

This is not factually correct as HDB's written approval is required when one is looking demolish or hack a wall, for example.

One has to also comply strictly with the permitted time stipulated in order to not inconvenience the neighbours.

Nonetheless, Chris theorised that it will take a longer period of time to complete the same job on a condo unit than say an HDB unit, resulting in increased labour cost. 

In the comments section, many netizens took Chris' words of advice with a pinch of salt.

"Sounds like a bunch of lame excuses to inflate prices for private housing," one TikTok user said bluntly.

At the other end of the spectrum were netizens who thanked Chris for providing "great insights".

To be fair to Chris, he did cite the Management Corporation Strata Title (MCST) when speaking on renovation restrictions for condos.

What it means is that renovations on public housing flats follow guidelines from HDB while condos follow by-laws set out by their MCST.

For example, the speed of work may be impeded should the MCST stipulate a fixed time and duration that renovation works can be carried out.

MCST would also have to provide approval for renovation contractors to have access to the condo premises, something that is a non-issue for HDB flats.

ALSO READ: DIY condo renovation: How a creative couple self-designed their home (and furniture)

amierul@asiaone.com

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