Singapore’s Construction Demand To Remain Strong In 2023

 Read: Singapore Construction Year in Review & Forecast 2022

As highlighted in the year-end issue of Construction+ of 2022 (Review & Forecast section), Building and Construction Authority (BCA) expected the construction demand in Singapore to stay strong over the medium-term, with the total construction demand anticipated to reach between S$25 billion and S$32 billion per year from 2023 to 2026.

Zooming in on the year 2023, based on the data released by BCA on 12 January 2023, the total construction demand (the value of construction contracts to be awarded) this year is projected to range between S$27 billion and S$32 billion, similar to last year’s projection.

Public sector is expected to contribute about 60 per cent of the total construction demand, between S$16 billion and S$19 billion. This is supported by a continued strong pipeline of public housing projects amid Housing Development Board’s (HDB) ramping up of Build-To-Order (BTO) flats supply. Industrial and institutional building construction is expected to contribute strongly as well with more projects involving water treatment plants, educational buildings and community clubs. Likewise, civil engineering construction demand is anticipated to stay firm with continued support from MRT line construction and other infrastructure works.

Meanwhile, private sector construction demand is projected to be between S$11 billion and S$13 billion in 2023, comparable with 2022 figures. Both residential and industrial building construction demand are expected to be similar to last year’s level, underpinned by development of new condominiums and high-specification industrial buildings. Due to the rescheduling of some major projects from 2022 to 2023, as well as the redevelopment of old commercial premises to enhance asset values, commercial building demand is anticipated to increase. —Construction+ Online

Source: Building and Construction Authority