How to Plan Your Renovation Budget in Hong Kong

How to Plan Your Renovation Budget in Hong Kong

Renovating a flat in Hong Kong is one of the most significant investments a household can make — often second only to the property purchase itself. Whether you are refreshing a 20-year-old estate flat or doing a full gut renovation of a second-hand private unit, getting the budget right from the start can save you from financial stress, contractor disputes, and half-finished projects. This guide breaks down the real costs, the expenses people forget, and how to structure payments safely.

Typical Renovation Costs in Hong Kong (2025–2026)

Costs vary enormously depending on flat size, scope, and material choices. Below are rough benchmarks for a standard residential renovation in Hong Kong:

• Basic refresh (painting, minor repairs, lighting): HK$600–$1,000 per square foot
• Medium renovation (new flooring, kitchen cabinets, bathroom refit, painting): HK$1,000–$1,500 per square foot
• Full renovation (gut the flat, move walls, all new plumbing and wiring, custom cabinetry): HK$1,500–$2,500+ per square foot

For a typical 400 sq ft flat in a housing estate, expect to spend roughly HK$400,000–$600,000 for a medium-scope renovation, and HK$600,000–$1,000,000+ for a comprehensive overhaul. A 700 sq ft private flat can easily reach HK$1–1.5 million for high-end finishes.

Breaking Down the Major Cost Categories

Ask your contractor to itemise the quotation into these categories so you can compare like for like:

• Demolition and disposal (拆除清運): 5–8 % of total. Includes hacking old tiles, removing built-in furniture, and carting debris to a landfill. The government landfill charge is billed by weight, and your contractor should include this in the quotation.
• Plumbing (水喉): 8–12 %. Re-routing water supply and drainage is one of the costliest trades, especially if the building's main stack is old and requires a licensed plumber's sign-off.
• Electrical (電力): 8–12 %. Rewiring, adding circuit breakers, installing new socket points, and upgrading the distribution board. Under Hong Kong regulations, electrical work must be done by a registered electrical worker (REW).
• Tiling (鋪磚): 10–15 %. Labour for laying tiles is expensive in Hong Kong. Large-format tiles (e.g., 600 × 1200 mm) cost more to install. Budget separately for the tiles themselves — prices range from HK$20/sq ft for basic porcelain to HK$100+/sq ft for imported Italian marble-effect tiles.
• Carpentry and cabinetry (木工): 20–30 %. Custom wardrobes, kitchen cabinets, shoe cabinets, and TV feature walls. This is usually the single biggest line item. Solid wood costs significantly more than plywood with laminate veneer.
• Painting (油漆): 5–8 %. Typically two coats of sealer and two coats of emulsion paint. Anti-mould paint is advisable for bathrooms and north-facing walls in Hong Kong.
• Air conditioning (冷氣): 5–10 %. Split-type units are standard. A typical 400 sq ft flat needs two to three indoor units and one outdoor compressor. Budget HK$30,000–$60,000 depending on brand (Daikin and Mitsubishi are popular choices in Hong Kong).

Hidden Expenses People Forget

These costs catch first-time renovators off guard:

• Building management deposits: Most Hong Kong estates require a renovation deposit of HK$10,000–$50,000 before work starts. This is refundable if no damage is done to common areas, but you need the cash flow upfront.
• Temporary accommodation: If the renovation takes 6–10 weeks (typical for medium scope), you may need to rent a serviced apartment or stay with family. Budget HK$15,000–$30,000 per month for a short-term rental.
• Government fees: If you are removing or adding walls, the Buildings Department may require a Minor Works Submission. Fees for the Authorised Person (AP) or Registered Structural Engineer (RSE) can run HK$10,000–$30,000.
• Appliance and fixture costs: Contractors usually exclude appliances from their quotations. Toilets, basins, taps, range hoods, hobs, and ovens can easily add HK$30,000–$80,000.
• Contingency: Always reserve 10–15 % of the total budget for unexpected issues — hidden water damage behind tiles, asbestos in older buildings, or structural surprises when walls are opened up.

Payment Schedules: Protecting Yourself

Never pay the full amount upfront. A typical Hong Kong renovation payment schedule looks like this:

• Deposit on signing the contract: 10–15 %
• After demolition is complete: 15–20 %
• After plumbing and electrical rough-in: 20 %
• After tiling and carpentry: 25–30 %
• Final payment after inspection and handover: 10–15 %

Withholding 10–15 % until final inspection gives you leverage to ensure the contractor fixes snags. Reputable contractors accept this arrangement. If a contractor demands more than 40 % upfront, treat it as a red flag.

How to Compare Contractor Quotes

Get at least three written quotations and compare them using this method:

• Scope alignment: Ensure each quote covers the same scope of work. Some contractors leave out items (e.g., disposal fees, painting ceilings) to appear cheaper.
• Material specifications: Check whether the quote specifies brand and grade for tiles, paint, plywood, and hardware. "Tiles included" is meaningless without a price cap or brand name.
• Timeline: A quote should include a start date and expected completion date with milestones. In Hong Kong, many estates restrict renovation hours to 9:00–17:00 on weekdays and 9:00–13:00 on Saturdays, with no work on Sundays and public holidays — this affects the timeline.
• Warranty: Ask about the defects liability period. A 6–12 month warranty on workmanship is standard. Get this in writing.
• References: Ask for photos or addresses of recent completed projects. Check Google reviews, HKDecoman (裝修佬), or the platform 28Hse for ratings.

Tax Deductions and Financing

Renovation costs in Hong Kong are generally not tax-deductible for owner-occupied properties. However, landlords can claim a standard 20 % deduction on rental income for repairs and outgoings. For financing, some banks offer renovation loans at rates of Prime minus 1–2 %, typically capped at HK$1–2 million with terms up to 60 months. Compare several banks before committing.

Planning a renovation budget is not glamorous, but it is the foundation of a successful project. Spend time getting the numbers right before you pick a single tile sample, and you will thank yourself when the project is complete — on time and within budget.