Overview
Singapore renovation sector remains concentrated on Housing & Development Board houses
The renovation sector in Singapore is a sub-segment of the construction sector, which contributed to approximately 2.9% of the nominal GDP of Singapore’s total output in 2021. The most common renovation projects related to home renovations, of which approximately 80.0% was related to renovations done in the Housing & Development Board (HDB) flats mainly owing to all Singapore dwellings being built by the same.
On average, the cost of a home renovation project based on the size of a 4-room, resale HDB flat (1,000 square feet), which accounts for the majority of Singaporean homes (32% of all homes), would be SGD 45,600. This cost comprises all the raw material required and the labour needed to complete the project, and further accounts for nine major components to be incurred during the renovation project including hacking, masonry, carpentry, plumbing and electrical.
Robust government housing framework supports sector growth
The HDB is the public housing authority responsible for planning, developing and building Singapore’s housing estates. Further, it oversees the operations of the public housing construction in the country. As of end-2021, the HDB had completed more than one million houses in 23 towns and three estates across Singapore, and provided housing facilities for approximately 80% of Singapore’s population, of which approximately 90% own their homes.
Currently, under HDB’s main upgrading and renovation programme is the Home Improvement Programme (HIP), which was established in 2007 to provide a systematic and comprehensive framework to assist homeowners to resolve common maintenance problems of ageing flats, such as spalling concrete. Accordingly, flats built between 1987 and 1997 are eligible under this programme settled through payment schemes. However, the programme will only proceed if at least 75% of a block’s eligible Singapore Citizen households have voted in favour of the HIP after the initial assessment. The duration of the project on average will range from 1.5 to 2 years.
HDB maintains a Directory of Renovation Contractors and a Building and Construction Authority Approved Window Contractor to assist home-dwellers to access renovation services without a hassle. Further, HDB outlines the types of renovations and guidelines for the same to be carried out, for oversight and guarding against any unauthorised work.
Key Trends
Delays due to COVID-19 pandemic and renovator malpractices in project completion result in significant negative brand image for the sector
In 2021, the Consumers Association of Singapore (CASE) received approximately 1,300 complaints representing a significant 50% YoY increase, of which approximately half of the complaints cited failure to complete projects on schedule and unsatisfactory workmanship in projects. Further, other main complaints included additional costs raising the final billed cost and difficulties in obtaining the deposit refund despite failure to complete projects. However, on average, approximately 1,323 complaints had been lodged with CASE during the 2014-2019 period related to renovation contract problems.
Delays in project completion were mainly driven by the COVID-19 pandemic, with widespread supply chain disruptions, production stoppages and shipping delays owing to lockdowns, and a shortage of manpower as regulations on worker immigration and employee working environments were kept under heavy scrutiny due to health and safety reasons. Further, demographic changes in living spaces as more people opted for working-from-home options propelled the demand for home renovation projects as citizens spent more time at home. Industry players were unable to keep up with this demand mainly due to the factors mentioned above, leading to an over-stretching of its capacity.
Nevertheless, in May 2022, to address the structural issues in the renovation sector, such as the lack of regulatory mechanisms for projects, the Competition and Consumer Commission of Singapore (CCCS) introduced a guide on fair trading practices for the renovation industry and customers.
The framework provides the following guidance in identified areas of a renovation project and contract:
- There should be a mutually agreed upon timeline between clients and contractors for renovation work;
- Services should be transparently priced without any additional fees;
- Accurate descriptions of the contractor's delivered goods and services are required;
- Contractors must get the consumer's permission before supplying products and services; and
- Contractors must have a clear policy for returns, exchanges and refunds.
The guide, according to CCCS and CASE, aims to educate contractors about what can be considered an unfair business activity under the Consumer Protection (Fair Trading) Act 2003 as well as other behaviours that can be adopted to support customers in making informed decisions. Further, CCCS encourages consumers to consider engaging CaseTrust-accredited contractors as they are committed to fair trade practices and consumer-friendly policies.
Tightening interest rate cycle to moderate sector growth
In September 2022, the Monetary Authority of Singapore unveiled an array of strategies to promote sustainable conditions in the property market, which includes higher interest rate consideration for debt servicing capabilities and anticipating further interest rate hikes in the banking system, after an increase in the residential mortgage rate to 4.0% from 3.5% previously.
Consequently, while the affordability of housing loans will become difficult, more and more Singaporeans are expected to turn to renovation to sustain living conditions. However, renovation loans are poised to be expensive similar to an upward trend in mortgage rates, as Singapore continues to explore interest rate tightening cycles.
Home renovation loans can be taken up to 20% of the home value, and qualify for many improvement projects including electrical and wiring works, painting and redecorating works (i.e. wallpaper), and structural alterations (i.e. tearing down walls).
Key Statistics
- As of September 2022, there were 2,457 renovation contractors registered under the Directory of Renovation Contractors of the Housings & Development Board, out of which 197 entities were CaseTrust-accredited by the Consumers Association of Singapore.
- As of March 2021, the total number of announced HIP projects rose a substantial 5.5 times YoY to 52 projects, likely owing to the backlog created by the COVID-19 pandemic.
- As of March 2021, total HIP projects completed fell 56.4% YoY to 23.5 projects, while ongoing projects fell 20.4% YoY to 95.5 projects.
Top Singapore Large Local Enterprises in Renovation
NGAI CHIN CONSTRUCTION PTE LTD
Ngai Chin Construction was established in 1986 and is headquartered in Singapore. The company is an interior fitting-out service provider which offers fitting out services for premises in the private commercial sector, including office spaces and light industrial properties across the country. Its range of services includes project and construction management, interior fitting out services, customizing, supplying and manufacturing services, and maintenance services, among many others. Over the years, the company has been honoured with numerous awards, one of which is the bizSAFE STAR certification from the Workplace Safety & Health Council, in the year 2009.
FALCON INCORPORATION PTE. LTD.
Falcon Incorporation, which was incorporated in 2002, is headquartered in Singapore. It operates an office and two factories in Vietnam, which help to strengthen its presence in the APAC region. The company is one of Singapore’s leading interior fit-out specialists and high-end contract furniture manufacturers. The company’s portfolio of services includes interior fit out, contract furnishing, loose furniture, professional contract management, upholstery, as well as mechanical, electrical, plumbing and sanitary services. Falcon Incorporation received the Singapore Enterprise 50 Award in 2013, and the ASEAN Award - in the Growth Category for large companies - in 2012.
LUM CHANG INTERIOR PTE. LTD.
Repeat company as per the client.
Top Singapore SMEs in Renovation
I DESIGN & BUILD PTE. LTD.
I Design & Build, which was established in 2004, is headquartered in Singapore. The company specializes in interior design, and also operates offices in the Philippines and Malaysia. I Design & Build has undertaken numerous retail, F&B, corporate and other projects across Singapore, Myanmar and Hong Kong. It offers services such as interior design, design and project consultancy, space planning, customized carpentry, electrical and plumbing works, and metal and aluminum works to its clients across the F&B, retail malls, schools, offices, clinics and residential sectors. I Design & Build was honoured with the Singapore SME 500 Award for 2021 and 2022, and the Singapore Entrepreneur 100 Award in 2021.
MENG THONG CONSTRUCTION PTE LTD
Meng Thong Construction, which was established in 1995, is headquartered in Singapore. The company specializes in interior renovation and contracting services for clients within the corporate and commercial sectors. Meng Thong Construction offers services such as built-in furniture, interior designing, kitchen and toilet makeovers, ceiling works, fabric acoustic panel, site supervision, hacking works, reinstatement masonry, and tiling works, among others. Over the last couple of decades, Meng Thong Construction has undertaken numerous residential and commercial projects for clients across the country.
ALPHA FORMATION PTE. LTD.
Alpha Formation was incorporated in 2011. Headquartered in Singapore, the company specializes in interior design and renovation services for various commercial projects that include offices, retail outlets, kiosks, restaurants and hospitality venues. In addition, the company also undertakes various overseas projects. Alpha Formation’s array of services includes space planning, preparation of design and concept, regular site inspections, and liaising services, among others. These services are offered to the client via four stages, which are design stage, costing stage, construction stage and completion stage.
UNIMAX CREATIVE PTE. LTD.
Unimax Creative is headquartered in Singapore. Established in 1997, the company operates at two locations in Singapore, while also conducting business in two of China’s busiest cities, Shanghai and Beijing. Unimax Creative specializes in offering design and renovation solutions, and extends its services to both residential and commercial clients. Since it was founded in Singapore 25 years ago, Unimax Creative has been honoured on numerous occasions, including being conferred the Singapore Prestige Brand Award in the Established Brand Category in 2009, and the Outstanding Entrepreneur Award at the APAC Entrepreneurship Awards in 2011.
THE INTERIOR PLACE PTE. LTD.
The Interior Place was established in Singapore in 1999. It is a reputed interior design company which has undertaken numerous residential and commercial design projects in Singapore and overseas. The company’s residential property projects include landed properties, condos and HDBs. The Interior Place offers design consultancy and design-and-build services to its clients. Since its incorporation over two decades ago, The Interior Place has been honoured with numerous awards. These include Best of Houzz Design in 2017, Top Business Brand in 2016/2017, Circle of Excellence Award in 2011/2012, and Singapore Brand Awards in 2011.
WEIKEN.COM DESIGN PTE. LTD.
Repeat company as per the client.
DESIGN 4 SPACE PTE. LTD.
Design 4 Space is a company that is headquartered in Singapore. Incorporated in 2012, the company operates three showrooms in Singapore and more than five offices worldwide. Design 4 Space specializes in HDB interior design, condominium interior design, landed new erections, A&A works, commercial works, and home, bathroom and kitchen renovations. Over the last ten years, Design 4 Space has been honoured with awards such as Asia Excellence Award in 2020/2021, Peoples No. 1 Choice in 2020/2021, and the Qanvast Supertrust Award for the years 2020, 2021 and 2022.
3D INNOVATIONS DESIGN PTE. LTD.
3D Innovations Design was established in Singapore in 1982. The company operates two branches and has an in-house carpentry workshop in Singapore. 3D Innovations Design is an ISO 9001 certified company which specializes in renovation contractor services for HDB flats and private developments. It has undertaken many residential and commercial projects across the country. The company’s services include full interior design and renovations, design consultations, layout and space planning, and more. Some of its successful projects include Sky Park, The Minton, The Luxurie and 343 Tampines. 3D Innovations Design has been featured in TODAY, SquareRooms, and Lookbox Living, among others.
EIGHT DESIGN PTE. LTD.
Eight Design, which was incorporated in 2006, is headquartered in Singapore. In addition toa showroom and a factory that it operates in Singapore, the company has also set up a factory in Malaysia. Eight Design is an interior design company which offers services such as project management, space planning, design solutions, renovation projects and interior styling for residential and commercial properties in Singapore. The company undertakes residential interior design projects for HDBs, condominiums and landed houses, and also commercial design projects for offices and retail stores.
OMNI DESIGN PTE. LTD.
Omni Design is a full-service interior design firm which is headquartered in Singapore. Incorporated in 2016, the company operates two mega showrooms in Singapore as well as a carpentry factory. Omni Design takes on interior design projects for commercial and residential properties such as HDBs, condos, landed properties, offices and shops. In addition, it also offers a range of design styles for the clients to choose from, including Scandinavian, Mediterranean, modern, minimalist, contemporary, industrial, oriental, colonial, luxury, eclectic, and Victorian, among others.
Top Singapore Fastest-Growing Companies in RenovationTop 10 Renovation
XCLUSIVE R&R ENGINEERING PTE. LTD.
Xclusive R&R Engineering is a company that is headquartered in Singapore. Incorporated in 2018, the company specializes in providing reinstatement and renovation services for commercial landlords and tenants, as well as for residential homeowners. Xclusive R&R Engineering provides reinstatement and renovation services for all commercial buildings, shop lots, malls and residential units.
CUBE ASSOCIATE DESIGN PTE LTD
Cube Associate Design, which was incorporated in 1998, is headquartered in Singapore. It is a design consultancy firm which offers creative and practical design solutions. The company provides a variety of services in architecture and interior design, spatial planning, conceptualization, and project management for residential and commercial properties. Cube Associate Design has been honoured with awards such as Home of the Year 2000 by Home & Decor, and a Distinction Award for the Design Excellence Award by SID(S) / Nippon Paint. In addition, it has also been featured in magazines such as Tatler Homes Singapore, and Home & Decor, as well as The Business Times Design.
LUM CHANG INTERIOR PTE. LTD.
Repeat company as per the client.
IDEAL HAUS PTE. LTD.
Ideal Haus, which was incorporated in 2017, is headquartered in Singapore. It is an interior design company with experience in offering services such as spatial planning, home beautification, interior architectural detail design, hacking works, carpentry fabrication, electrical works, site supervision, and plumbing works. These services are offered to residential properties, which range from HDB flats to landed properties, and commercial properties such as industrial sites and offices. The company undertakes a range of projects from multi-million dollar homes to simply helping its clients with choosing the best shade of paint.
L & CO INTERIOR PTE. LTD.
L & CO Interior is a company that is headquartered in Singapore. Established in 2018, it is an interior design company which specializes in designing homes as well as commercial projects for offices, F&B stores, retail and many others. L & CO Interior’s services include interior design, 3D drawings, site management, additions & alterations (A&A) and reconstruction. The company also provides its clients a variety of design styles, including modern luxury, modern contemporary, and Muji, among others which are all displayed at the company’s showroom.
LAURUS DESIGN PTE. LTD.
Laurus Design, which was incorporated in 2012, is headquartered in Singapore. The company, which specializes in interior design, offers a portfolio of services which includes interior design and space planning, design consultation, renovation works for houses and condominiums, renovation works for apartments, HDB DBSS and BTO flats, renovation of commercial offices, retail shops and outlets, and 3D design services. In addition, it provides smart home services, flooring, plumbing, carpentry and electrical works, on-site supervision and warranty provision on workmanship. Laurus Design also offers packages for condos, BTO and others.
METER CUBE INTERIORS PTE. LTD.
Meter Cube Interiors is headquartered in Singapore. Founded in 2019, it is an interior design company which offers a range of design solutions and services for residential and commercial properties. These include HDBs, landed properties, condominiums, offices, restaurants, shopping centres and others. Meter Cube Interiors offers its clients an array of services such as space planning, design consultation, addition and alteration services, and design and build services. Moreover, Meter Cube Interiors’ services can be customized to meet the client’s ideas and requirements.