The Singaporean housing market was also hit hard by the pandemic, just like any other country. Since the circuit breaker ended in the second quarter of 2020, home prices have increased. Experts had noted that they would continue to rise for most of 2022.

Such was the forecast because the demand was greater than the supply. For instance, in 2021, more than 25,000 HDB flats reached their minimum occupation period. It triggered a demand for bigger HDB resale flats and entry-level condos. But the market wasn’t “overheated” yet, according to the government. To curb rising prices, the government introduced the new Prime Location Housing (PLH) model, which would regulate the prices of future HBD flats in prime locations.

However, only 11 new launches are expected to take place in 2022. This would tamp down the supply further, with the government also cutting back the land supply. Since houses will continue to be expensive, is buying one worth it, or should you just renovate?

Renovating Your Abode

A home renovation tends to be more attractive because it’s cheaper than buying. And in a city as metropolitan as Singapore, the cost savings you’d get from renovating can reach hundreds of thousands of dollars. But a home makeover isn’t necessarily cheap, especially if maintenance and repairs will be included.

Most residences in Singapore are four-bedroom HDB flats, which are around 90 square meters large. According to ValueChampion, renovating such a space costs S$55,750 on average. That cost already covers nine major components, such as:

• Hacking
• Masonry
• Carpentry
• Plumbing
• Electrical
• Painting
• Glass and aluminum
• Cleaning and polishing
• Appliances

Your choice of building materials can decrease or increase your total spending. For example, if you want marble countertops, a slab of that per square foot costs S$10 to S$15. They most likely require professional installation, too, adding S$3 to S$10 per square foot to the costs.

The interior design style you want to achieve would influence the costs, too. A contemporary HDB flat could cost S$72,530 to create. If you live in a condo, you may spend a bit more, about S$78,133. Going retro or vintage isn’t necessarily cheaper, either. It may even be more expensive, especially if you buy new products instead of upcycling what you already have.

If the budget is tight, you can save by DIY-ing your own home renovation. Buy raw materials and fashion them into floorboards, tabletops, and others yourself. Of course, you need plenty of DIY skills to nail this method. So if you’re a construction novice, you may be better off with a contractor and interior designer.

That would be expensive, so consider getting a renovation loan instead of using your savings. If you have good credit and enough income, you’ll get approved for this loan quickly.

Hiring pros for a renovation is often wiser than doing it yourself. Pros know what they are doing, so they’re less prone to making mistakes. Going the DIY way is risky and potentially unsafe because of ladders and power tools.

Buying a New Home

Buying a new home is the right option if your current space isn’t serving you anymore. Maybe it’s too far from your workplace, or the neighborhood isn’t safe. Changing needs is a factor, too. If you have a growing family, for example, you’ll obviously need not just more space but a more family-friendly neighborhood as well.

The average cost of a new home can just be discouraging. An HDB flat is your cheapest option, but that already costs S$532,768. You may find something more affordable if you focus on the median price point, which is S$495,000. Still, it’s not much of a difference.

If you think a condo suits you better, save or borrow at least S$1,780,051. But if you can afford a landed home, expect to shell out around S$5,063,507.

A fixer-upper HDB, condo, or landed home would be much cheaper but require extensive renovations. As such, you may end up spending more than what a new home costs. But at least, you can already live in a fixer-upper before renovating it. That may give you some time to save up for the renovation. In the meantime, you can focus on crucial repairs, like fixing leaks, wiring, and structural issues.

Considering all of these, whether you should renovate or buy depends on your situation. If a new home is a need, don’t bother with renovating your space. Just save up to buy. If your current space doesn’t have major problems, either wait until you can move out or renovate it to enjoy an improved home. After all, upgrades can boost your home’s value, so don’t dismiss the idea of a renovation altogether.