High demand but lack of skilled workers driving up cost of home renovations, expected to continue in 2023

SINGAPORE — If you want to renovate your home next year, be prepared not to wait, as renovation companies are still finishing current projects. Be prepared to pay more as well.

A Dec 27 CNA report says that the demand for such home improvement works is expected to remain high. Several renovation companies say that prices could go up by as much as 20 per cent due to the double whammy of increasing manpower and material costs.

For example, the steel price has gone up by around 50 per cent while cement is up by about 20 per cent. The cost of shipping, which is not inexpensive either, still needs to be considered and could end up costing an increase of 10 per cent to the total renovation costs, one senior interior designer told CNA.

As it is, the report says that six to eight months may be needed just for renovation companies to deal with the backlog of projects due to the Covid pandemic. A lack of skilled craftsmen, tilers, and carpenters could mean delays in finishing projects.

Ms Gena Thien, the director of the Renovation Contractors and Material Suppliers Association, is quoted in CNA as saying, “Overall, for the interior renovation industry, we are about 80 per cent reliant on foreign manpower. With that, I think there’s a strong need to nurture local manpower. We need to be realistic due to the nature of our workforce.”

One netizen commenting on CNA’s report said, “We shld set up our own factories here to produce some of the raw materials.”

Some appeared to be in a panic over high prices everywhere.

“Hope their workmanship is improved by 20% also….,” remarked another. 

Looking to renovate? Please make sure to read the following first: 6 Hidden Costs of Home Renovation & How to Avoid Them /TISG

6 Hidden Costs of Home Renovation & How to Avoid Them