Renovating a pre-owned condominium is an effective way to improve asset value, but starting construction without a full understanding of the overall cost picture creates a risk of going over budget. Here, we explain typical costs, cost breakdowns, and the factors that increase or decrease costs from an investment decision perspective.
What is the typical cost range for a full skeleton renovation of a condominium?
A useful benchmark is JPY 100,000 to 150,000 per square meter. For a 60㎡ unit, that works out to roughly JPY 6 million to 9 million. However, the smaller the unit, the higher the cost ratio for kitchen and bathroom equipment, which pushes up the cost per square meter.
How are renovation costs broken down?
- Craft labor (personnel costs)：The largest share of the total
- Materials and equipment costs：The next largest share
- Site supervision and design costs
- Other miscellaneous expenses
What factors cause renovation costs to vary?
Regional differences
For units of 60〜70㎡, costs are about JPY 9 million to 15 million in Tokyo and about JPY 8 million to 12 million in Osaka, creating a price gap of more than 20% depending on the region.
Commitment to layout and design
Major layout changes, the use of solid wood, and custom kitchens all push costs higher.
Contractor selection
Local builders often find it easier to keep costs down because they have lower advertising expenses and can complete more work in-house, while large firms tend to have strengths in design quality and quality control.
Renovation examples that improve cost-effectiveness
| Type | Size | Cost | Key point |
|---|---|---|---|
| Full interior refresh | Approx. 99㎡ | Approx. JPY 7.4 million | No layout changes, with costs concentrated on interior finishes |
| Skeleton renovation | Approx. 67㎡ | Approx. JPY 12.5 million | 2 rooms → 20-tatami LDK, with solid wood used |
| Partition removal | Approx. 49㎡ | Approx. JPY 6.5 million | 3DK→1LDK, with interior windows used to secure natural light |
Frequently Asked Questions (FAQ)
Q. Does renovation increase a property's asset value?
With appropriate work, an increase in asset value can be expected. However, the investment return varies depending on location and building age.
Q. What are the best ways to control renovation costs?
It is important to keep layout changes to a minimum and create a clear distinction between where to invest and where to reduce costs.
Q. What should investors keep in mind when renovating an investment property?
Aligning specifications with the target tenant segment and linking the plan to a rental marketing strategy are the keys to maximizing returns.
