Value of Renovated vs Unrenovated HDB Resale Units in Singapore

Singapore’s HDB resale market continues to be dynamic and highly competitive. As buyers scout for value-for-money options, one question frequently arises: Should you buy a renovated or an unrenovated HDB resale unit? Understanding the implications in terms of cost, convenience, long-term investment, and flexibility is crucial for making the right choice. This blog delves deep into the value proposition of renovated vs unrenovated HDB resale units and how each affects your finances, lifestyle, and resale prospects.

jeassica devis

Jun 25, 2025 - 13:05

Jun 25, 2025 - 13:06

Value of Renovated vs Unrenovated HDB Resale Units in Singapore

Singapore’s HDB resale market continues to be dynamic and highly competitive. As buyers scout for value-for-money options, one question frequently arises: Should you buy a renovated or an unrenovated HDB resale unit? Understanding the implications in terms of cost, convenience, long-term investment, and flexibility is crucial for making the right choice.

This blog delves deep into the value proposition of renovated vs unrenovated HDB resale units and how each affects your finances, lifestyle, and resale prospects.

1. What Defines a Renovated vs Unrenovated HDB Flat?

Renovated HDB Units

Renovated flats typically come with:

Modern flooring (e.g., tiles, vinyl)
Built-in cabinetry in the kitchen and bedrooms
Upgraded bathroom fittings
New electrical wiring and lighting fixtures
Fresh paint or wallpaper
Air-conditioning and ceiling fans

These are often move-in ready and appeal to buyers who prefer convenience and aesthetic finishes.

Unrenovated HDB Units

Unrenovated flats may include:

Original flooring and wall finishes
Basic kitchen setups (or none at all)
Older toilet and plumbing fittings
Minimal or outdated electrical works
Wear and tear signs due to age

These units offer a “blank slate” for homeowners looking to customise their homes from scratch.

2. Cost Implications: Renovated vs Unrenovated

Upfront Cost

Renovated HDB flats are generally priced higher due to the enhanced interiors. Buyers are paying not just for the property, but also for the effort, design, and costs already invested in the renovations.

Typical Price Difference:

Renovated 4-room flat in mature estate: ~$650,000+
Unrenovated 4-room flat in same area: ~$600,000–$620,000

Renovation Costs for Unrenovated Units

If you're considering an unrenovated flat, you’ll need to factor in renovation costs, which can vary significantly:

Basic renovation: $25,000–$40,000
Mid-range renovation: $40,000–$70,000
High-end renovation: $70,000+

This means the “cheaper” flat may cost more over time if you intend to do extensive renovations.

3. Time and Convenience Factors

Renovated: Move-In Ready

For young families, expats, or busy professionals, the biggest advantage of a renovated flat is convenience. The renovation is already done, and the home is move-in ready, eliminating months of planning and contractor management.

Unrenovated: Time-Consuming

Renovating from scratch involves:

Hiring an ID or contractor
Selecting materials and design themes
Waiting for HDB renovation permits
Living elsewhere during the 2–4 month renovation period

If time is of the essence, unrenovated flats can delay your move-in plans significantly.

4. Personalisation and Design Freedom

Unrenovated Units Allow Full Customisation

Many buyers prefer unrenovated units because:

You can tailor everything to your personal taste
Avoid wasting money tearing down previous renovations
Ideal for minimalist, modern, or unconventional layouts

Customising your home ensures that every design choice aligns with your lifestyle.

Renovated Units May Limit Flexibility

Buyers of renovated flats may face:

Fixed layouts or built-in furniture that doesn’t match their needs
Costs of dismantling features they don’t like
Compromises in design preferences

Unless the existing renovation fits your style, you may still need to spend on minor reworks.

5. Renovation Grants and CPF Usage

When buying HDB resale units, grants like the Enhanced CPF Housing Grant (EHG) or the Family Grant can help offset the cost of either option. However, the actual renovation cost cannot be financed using CPF savings and must be paid in cash or through personal loans.

So, if you’re stretching your CPF for the property purchase, going for a renovated flat might reduce your cash outlay compared to buying and renovating an unrenovated unit.

6. Depreciation of Renovation Value

Renovation Is Not Permanent Value

It’s important to note that renovation value depreciates over time. A flat renovated 5 years ago may not command the same premium as one freshly done.

Typical lifespan of common renovations:

Carpentry: 8–10 years
Flooring: 10–15 years
Bathroom/kitchen fittings: 10 years

Hence, paying a high premium for a 10-year-old renovated unit might not make financial sense.

Buying Unrenovated = Fresh Renovation Timeline

You start with a new renovation timeline and modern materials, which can extend the functional life of your interiors and reduce maintenance for the next 10–15 years.

7. Impact on Future Resale Value

Renovated Flats May Have Short-Term Appeal

Freshly renovated flats can fetch a better price in the short term as they look attractive to buyers. However, this premium erodes with time.

Unrenovated Units Offer Flexible Resale Strategy

If you renovate well, your unit could attract future buyers who appreciate updated finishes. If not, you can resell the flat as unrenovated and market it as a “blank canvas”—an approach that also works, especially with design-savvy buyers.

8. Mortgage Valuation Considerations

HDB and bank valuations are generally based on market transactions and location, not on interior renovations. This means:

A seller of a highly renovated unit may price it higher than the official valuation, expecting buyers to pay Cash Over Valuation (COV).
Buyers of unrenovated flats may pay closer to valuation and avoid COV.

If you're budget-sensitive, buying an unrenovated flat may reduce upfront cash requirements.

9. Lifestyle and Immediate Use Needs

For Immediate Occupancy: Renovated Wins

If you are:

Upgrading from an existing home and don’t want delays
Having kids or elderly parents who need immediate housing
Renting and want to stop monthly rent payments

A move-in-ready renovated unit may be more practical.

For Long-Term Planning: Unrenovated May Be Better

If you’re not in a rush or are buying the property for long-term use or investment, waiting a few months to renovate could give you a better outcome over the years.

10. Buyer Profiles: Who Should Buy What?

Renovated HDB Flats Best Suited For:

Time-starved professionals
Families with young children
Elderly couples
First-time buyers wanting minimal hassle

Unrenovated HDB Flats Ideal For:

Design-savvy individuals
Buyers on tighter budgets with renovation loans
Long-term planners who value customisation
Investors planning to lease or resell

11. Examples from Singapore's HDB Market

Let’s compare two actual listings (hypothetical):

1. Renovated 4-Room Flat in Bishan

Asking price: $670,000
Renovated 3 years ago with Scandinavian-style interiors
Zero renovation needed
COV of ~$20,000 required

2. Unrenovated 4-Room Flat in Bishan

Asking price: $615,000
Original condition, 35-year-old unit
Buyer needs to invest ~$50,000 in renovations
Total spend: ~$665,000, but with fully personalised interiors

Depending on the buyer’s preference, both units are financially close, but offer different experiences.

Conclusion: Which Option Offers Better Value?

The choice between a renovated vs unrenovated HDB resale unit comes down to your priorities, budget, lifestyle, and long-term goals.

Criteria	Renovated Flat	Unrenovated Flat
Upfront Cost	Higher	Lower
Convenience	High	Low
Customisation	Limited	Full freedom
Time to Move In	Immediate	2–4 months
Resale Flexibility	Lower	Higher (post-reno)
COV Likelihood	Higher	Lower
Design Trend Relevance	May age	Can stay current