Hong Kong Luxury Home Renovation Cost Report 2022
The costs and process of renovating your Luxury Home in Hong Kong
May 2022 How Much Does It Cost To Renovate Your Luxury Home In Hong Kong? It is no small feat to renovate your home in Hong Kong and it requires a lot of time, effort, and money on your part. When considering a home renovation project, it's important to be aware the costs involved. By understanding the various costs associated with renovating a house, you can accurately budget for your renovation expenses, such as the cost of project management, construction, design and permits.
Average Cost Of Luxury Private Residential Home Renovation In Hong Kong
As a guide, a typical luxury residential renovation in Hong Kong will cost:
HK$3,500 - 5,000/square foot for high-end renovations i.e. major renovations with professional team and high grade materials. Here is a breakdown of the most common expenses associated with renovating a luxury home.
Costs To Consider in Home Renovation Projects Depending on the scope of your project, you may need to budget for the following: 1. Professional fees Hiring professionals to assist with your renovation is the only way to get the results you are looking for, without all the hassle. Homeowners must first understand the difference between the types of professionals – Project Managers and Designers.
Project Managers are responsible for the overall project as the client’s representative. They will help you establish the budget and cost plan, select designers, and oversee the design and construction of the renovation project. Project Manager fees range from 10 - 15% of the overall project budget set by the client. Designers focus on the aesthetics and layout of the pre-existing space. They help you plan the layout, design, and decor of your space as well as work with you to choose colors, materials, and furniture that fit both your function and style. A Designer's scope of services should include concept design, schematic design, detail design, tender design, construction stage review and approval of materials. Their fees range ranges from 10 - 15% of the construction costs.
It is very important to hire a Project Manager. They come with years of experience and will manage each step of the process, such as cost planning, procuring designers, tendering for contractors and following statutory procedures in accordance with the government’s Buildings Department. This is especially so after many high-profile cases of un-authorised building works. Hiring both a designer/contractor (Design & Build) combination should not be considered for luxury renovations as the client is left exposed to unforeseen costs and a distinct lack of independent representation for the client.
2. Renovation costs & process As said previously, appointing the Project Manager first is key to a successful project. At stage one of the process, the Project Manager will establish a cost plan. The cost plan has two distinct sections – soft costs and hard costs. Soft costs are non-construction related costs such as professional fees, contingencies, permit applications and legal fees etc. Hard costs are construction-related costs such as fit-out (labour & materials), Mechanical, Electrical & Plumbing (MEP) works, furniture, and Information Technology (IT) etc. Fit-out costs include demolition, ceilings, walls, floors, built-in cabinetry, kitchens etc. Improved acoustics, feature ceilings and any special features do increase the cost of fit-out costs. They typically account for 35% of the hard cost budget. Generally, MEP works should be done by mechanical/electrical engineering firms. MEP costs are around 30% of the overall hard cost budget. Furniture, Fixtures and Equipment (FF&E) typically account for 10% of the hard cost budget. This includes all loose furniture, rugs, decorative lighting and carpets.
3. Labour and material costs The size of the project, the number and variety of skilled workers needed, and the duration of time it will take to complete the renovation will affect the labour costs. As an example, the hard costs of your project will be split 50/50% labour and materials. There are a few ways to secure better value on the projects, such as directly procuring items such as sanitary ware, furniture and IT/AV equipment. However, if you do purchase these directly, you will still need to pay a contractor to install them.
Things to Take Note When Renovating Your Home In Hong Kong Whether you are starting from scratch or doing a remodel, there are some things to consider before beginning your renovation project. 1. Set aside a realistic renovation budget: Renovations are expensive, so it's important to plan ahead and know what you can commit to the renovation. By setting a budget and hiring a Project Manager you can ensure that your project can stay on track financially. 2. Source for at least three bidders: Costs can vary significantly depending on the contractors or designers you speak to. It's important that your Project Manager openly tenders for the design team and the contractor. 3. Create a schedule and have backup plans: With some organisation and planning by your Project Manager, home renovation in Hong Kong can be a lot less stressful. The Project Manager will create a schedule so you are aware of what to expect as well as avoid delays and costly oversights. Back-up accommodation is a must in case something doesn’t go as planned. This is especially prevalent during the pandemic as restrictions in China are fluid and the ever-changing restrictions in Hong Kong affect construction works as well.
Renovation Doesn’t Have To Be Difficult With Pre-Planning Home renovation can be a very costly process, but there are ways to keep them down. By planning ahead, getting the right support and being knowledgeable about the various metrics involved in renovating, you can keep a better grip on the cost of renovating a luxury
Prepared by Birgitta Levina - Project Manager Calla Woods Ltd.