Renovation Prices Are Going Up
The news that none of us wanna hear.
But we hear from the vines that suppliers & subcons will raise their prices very soon, by about 10%.
So if you’re planning a renovation anytime soon, you might want to lock things in early.
Or join our upcoming Reno x Home Loan Fair to meet vetted IDs quickly.
Watch our tiktok channel if you lazy to read.
Before you assume it’s just suppliers trying to earn more, let’s talk about what’s actually happening behind the scenes.
1. Rental Is Quietly Killing Subcontractors
One of the biggest pressures right now isn’t materials — it’s rent.
A lot of subcontractors (eg carpenters, glass) rely on physical workshops to operate.
Just last week, a carpenter that we know shared that he’s seriously considering downsizing his workshop.
Why? Because it would save him $2,000 from his current $5,000 monthly rent.
It might sound like nothing, but every cent counts when market is weak, and overheads are going higher.
In his words, “我赚的钱我只是拿来还租金，有什么意思。”
2. Here Comes Petrol Prices
We all know petrol prices have surged recently with the war, with diesel going beyond $4/l.
This is used by many of the suppliers when transporting supplies (from overseas to SG, or from SG to your house).
Every trip that the suppliers make to your house now costs almost double.
3. But Not All Dare to Raise Prices
This comment was made when we explained this in our tiktok video.
The truth is that only the big suppliers, with the steady demand, are raising prices.
The smaller subcons & IDs are sandwiched.
Costs are going up, but if they raise prices, they are afraid that homeowners jump ship.
But they simply don’t have room to absorb these rising costs anymore.
At this point, it’s not a question of if prices will go up — it’s when and how much.
You’ve got:
Rising rental costs
High manpower costs
Slow market demand
Upstream price increases from bigger subcontractors
Put it all together, the entire industry is under pressure.
And if you can lock in the prices now, why not?
TLDR
Reno prices are going up.
Large suppliers are raising prices by 10% or so, while the smaller ones are sandwiched between managing rising costs and fear of demand drop.
So if your ID is trustworthy, and you can lock in prices now, we suggest you do so soon.
If you are looking to shortlist reliable IDs/contractors for your reno, feel free to enquire here, or check out our blog for other important tips!!