Economic boom leads to 30% jump in home renovation projects

The boom in the economy for 2007 has contributed to a 30 percent hike in demand for household renovations. And industry players said consumers are looking for more luxurious, branded designs.

To cope with growing demand, contractors and interior designers are increasing their prices by as much as 30 to 50 percent.

Farok Majeed, chairman of Renovation and Decoration Advisory Centre, said: “Generally when the economy picks up, it goes into a boom cycle – people have surplus cash so they would either buy cars or renovate their homes… to reflect the environment they are in today.”

But industry players also noted that consumer demand is changing, and renovations are increasingly brand focused. Customers would ask for imported furniture from European brands such as Minotti and Giorgetti.

Even though contractors are upping their prices by as much as 50 percent, this does not appear to deter customers.

Some households are said to be paying up to S$1 million per project.

Wong Mey Shan, consultant, Suying Design, said: “I think over the last year, construction cost has gone up by about 30 to 50 percent. For the same scope of work, it is definitely going to cost more than it did two years ago. Budget-wise, we are looking at S$200,000 to even as much as S$1 million.”

Interior designers said luxury renovations account for roughly 20 percent of their yearly business. – CNA/so

Source : Channel NewsAsia – 9 Jan 2008

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