Spend $80k to renovate a 2-room flat? See why these seniors are going all out on their dream homes

SINGAPORE – In 2025, retiree Ivy Lim paid $97,731 for a 30-year lease on her two-room flexi flat in Pasir Ris.

She then spent another $70,126 on renovation, nearly as much as the price of the HDB Build-to-Order (BTO) unit itself. 

But Lim, 75, said the money was well spent.

Her 505 sq ft Housing Board flat, which she has been living in since March, has been transformed into a Mediterranean-themed home.

A mock staircase, soft arches and warm lighting make the space feel more like a boutique apartment than a retirement flat.

“Some people think old people should live in old-looking houses. But I know how to enjoy life. I don’t want to come back to a depressing home,” said Lim, who used to live in an executive flat and was a manager at an airfreight firm before retiring.

“My sister said my renovation cost as much as that for a five-room flat. I told her I don’t care.”

Lim is not alone. Interior designers and renovation contractors told The Straits Times that some home owners are spending large sums to renovate two-room flats, often inspired by stylish compact homes they see online.

The trend reflects a broader shift in how some buyers perceive small flats, which have long been associated with seniors and singles living in modest homes.

Instead of treating small flats as temporary housing, the owners see them as final homes worth designing well, according to the designers and contractors.

Those who have downgraded from larger flats say a smaller home is easier to maintain, but see no reason to compromise on design and comfort.  

Two-room flexi flats were launched in 2015 to give smaller households another public housing option. BTO flats in this configuration are available to families, singles aged 35 and older, and seniors aged 55 and older.

Seniors aged 55 and above can choose shorter leases ranging from 15 to 45 years. The short-lease option is meant mainly for older buyers who want a smaller flat while paying less upfront, with the lease length chosen to suit their housing needs in retirement.

‘I didn’t want something basic’

For 63-year-old Sebastian, a two-room BTO flat in Ang Mo Kio was a big enough living space after his children grew up and moved out of his previous four-room flat in Yishun.

Sebastian, who declined to give his full name, lives alone and prefers a place that is easy to clean.

He paid $147,000 for a 45-year lease on the flat and spent another $53,000 on renovation. 

“I didn’t want something basic,” said Sebastian, who works in real estate management. “I wanted a jazz theme...I wanted a bit more quality to my home.”

Sebastian’s son worked with interior design company M2D to bring his father’s vision to life. 

The finished look resembles a hotel suite, with vinyl flooring and lighting for a polished feel.

After living in the flat for nearly two years, Sebastian says it is easier to maintain than his previous home, but that he sometimes finds the space too small to host as many visitors as before.

Right-sizing with flexibility built in

For Christine Ang, 63, downsizing from her five-room flat in Redhill to a two-room flexi flat in Tengah was not a downgrade, but right-sizing.

After cashing out on her bigger flat in a prime district, the freelance trainer and consultant in the IT sector paid $198,000 for a 500 sq ft 99-year leasehold flat with a study and one bedroom. She shares the home with her 93-year-old mother.

Ang spent another $80,000 on renovation, and $20,000 on appliances and fittings. 

She installed smart lights and switches, as well as motorised blinds, all of which can be controlled from her phone.

She attributed the high renovation cost to the use of environmentally friendly materials for her custom-built carpentry. The furniture is fitted with rollers so it can be moved around whenever she decides to change the layout.

Ang, who moved into her new home in July 2025, said: “It’s not the first time I was renovating my home. Based on past experiences, I know that once I do it well, I don’t have to spend much on maintenance.”

A final home with a hotel feel

Other home owners who right-sized are Angie Lam, 65, and her husband Philip Yeoh, 68, who have three children.  

“Our children are grown up and married, and they are on their own. We thought it would be a good idea to ‘right-size’,” said Lam, adding that she wants to enjoy this stage of her life. “I don’t have to do so much housework.”

The couple, who paid less than $150,000 for a 40-year lease on their flat, collected the keys to their two-room flexi flat in Kovan on July 20, 2026.

They sold their 1,700 sq ft maisonette in Lorong Ah Soo for over $1 million in October 2025.

Lam expects the renovation to cost between $70,000 and $80,000.

“When I saw one of the designs by my interior designer Benjamin, I really liked it. He had designed a very nice two-room flat with a hotel vibe,” said Lam, a retired programme facilitator for seniors with dementia.

“I told Benjamin that this is going to be my final home. My husband and I are not young any more. I wanted it to be a nice, cosy home to come back to.”

Lam said the impending move has forced her to pare down decades’ worth of belongings.

“I threw away many things. I told myself I don’t need to have so many things any more. Now, I want a clutter-free home,” she added.

Interior designers said this shift in mindset is influencing how small flats are being renovated. Home owners are asking for smarter storage and stronger design concepts.

Why small flats are costing more to renovate

Carmen Tang, 53, design director of boutique design studio Wolf Woof, said two-room flats are “getting a lot fancier” as more home owners are exposed to stylish compact homes on social media.

Some clients, such as Lim, had approached Tang after seeing her work online and in magazines.

Renovation costs have also gone up, driven by higher material and labour costs, noted Tang.

While contractors previously charged about $20,000 to $30,000 for a no-frills two-room renovation, the cost of projects today can easily reach $50,000 if owners want to overhaul key areas such as the toilet, flooring and built-in storage, said Tang.

Benny Poon, a 41-year-old interior designer at Inspire ID Group, who renovated Ang’s flat in Tengah, noted that many home owners are influenced by what they see on social media and want to keep up with the trend.

“I have had many home owners tell me they want their two-room flats to look like a condo,” he said.

However, after hearing how much the renovation would cost, some scaled back their expectations, said Poon.

Most of his clients spend between $30,000 and $60,000 renovating their two-room flats.

Benjamin Toh, 33, director and interior designer at M2D, has handled at least 10 two-room flat projects since 2019, including the homes of Sebastian and Lam. 

The renovation budget for his bigger projects typically ranges from about $45,000 to $80,000. 

Toh said he has seen more interest from flat owners who choose to downsize in the past two years, and that they are usually willing to invest more in renovation to achieve their dream homes. 

For some of these owners, selling a larger flat before moving into a two-room unit can also free up extra cash, which may explain why some are willing to splash out on renovations.

For Lim, her decision to downsize came after her son repeatedly failed to get a BTO flat.

“He asked me if I would sell my house and put my name together (with his application) to get priority,” said Lim.

By applying under the Multi-Generation Priority Scheme, Lim and her son were able to get flats near each other.

Before that, she had lived in an executive flat in Pasir Ris with her mother.

“After my mother passed away, I had the whole house to myself. But I never came out of my room. The other two rooms were empty. The hall and the television were hardly used,” Lim recalled.

Since moving into her two-room flat four months ago, she has found that a small home suits her better.

It is easier to clean and the space is just enough for this stage of her life, she said.

Far from feeling like a compromise, the move to a small flat has brought unexpected rewards.

“I lie in my bed and I see the sea.”

Ivy Lim