The second quarter home improvement market may increase by 10%-15%
July 11 13:51:45, 2025
With the rising costs of labor and materials, as well as new policy regulations, the home improvement market in the capital is expected to see an upward trend in the second quarter, with an estimated increase of 10% to 15%. This is driven by multiple factors that are shaping the industry landscape this year.
One major factor is the increasing cost of both materials and labor. For instance, Yang Xiaojuan, a homeowner who recently purchased a new property at the end of last October, planned to start renovation after the Spring Festival. However, she was surprised to find that labor costs had risen significantly. The price for tiling, which was 30 yuan per square meter last year, has now gone up to 35 yuan per square meter. According to Pang Ting, director of a decoration company, the tile installation fee was 25 yuan per square meter back in 2011 and has been steadily increasing since then. Over the past two years, material prices have risen by about 10%, while labor costs have increased by around 20%, leading to an overall average increase of approximately 15%.
Wang Feng, general manager of Zhonglian Building Materials Supermarket, also confirmed that several tile and sanitary ware brands have not been priced for a while due to recent manufacturer announcements of 5% to 10% price hikes. While some decoration companies have not officially announced their rate increases yet, industry insiders suggest that the pressure from rising material and labor costs is already being reflected in the market.
Another key driver of the price rise is the implementation of new industry standards. In 2013, the introduction of national home improvement standards will bundle additional costs into the overall project price. These standards, currently under development by the Ministry of Commerce, aim to regulate construction technology, details, and quality in home decoration. They are expected to be released this year.
According to the “Construction Service Specification for the Home Furnishing Industry,†home improvement companies are required to conduct indoor environmental testing after completion, including checking for formaldehyde, benzene, ammonia, toluene, xylene, and TVOC levels. These tests must meet national standards and be signed off by the consumer. As a result, these inspection fees are likely to be passed on to homeowners.
Additionally, the “Code for Quality Acceptance of Residential Interior Decoration Projects†introduces more rigorous requirements for residential projects. Since many technical issues during acceptance are beyond the scope of consumers’ knowledge, third-party supervision is expected to play a larger role. If these costs are borne by the owner, it could further increase the total renovation expense.
Some homeowners are already taking proactive steps to save money. For example, Ma Sun, a resident of Sun Moon Starlight Community, began planning his renovation early last November. He contacted a home improvement company and ordered building materials like tiles, toilets, and wallpapers in advance. He said he chose to lock in prices before the expected increase, as many neighbors have already seen higher rates. This strategy of "hoarding" materials ahead of time seems to be a smart move for those looking to avoid future cost hikes.
Wang Li, manager of the Canoe Decoration Division, advises consumers to place orders for building materials as early as April and choose a reliable decoration company. Traditionally, material and appliance prices tend to peak in April-May or September-October, making early booking a practical option for those planning renovations.