Singapore’s construction demand—the value of construction contract awarded—is expected to remain strong in 2020. The Building and Construction Authority (BCA) projected that total construction demand will range between $28 billion and $33 billion.
The increasing demand is driven by the public sector, which is expected to reach between $17.5 billion and $20.5 billion, making up 60 per cent of the total demand for this year, while the private sector is projected to reach between S$10.5 billion and S$12.5 billion.The demands in the public sector is expected to be spurred by major infrastructure projects such as the Integrated Waste Management Facility, infrastructure works for Changi Airport Terminal 5, Jurong Region MRT Line and Cross Island MRT Line, while the private sector is supported by projects such as the redevelopment of en-bloc sale sites, recreational developments at Mandai Park, Changi Airport’s new taxiway and berth facilities at Jurong Port and Tanjong Pagar Terminal.
Last year’s total construction demand expanded by 9.5 per cent or $33.4 billion, which is $1.4 billion higher than the upper bound of BCA’s 2019 forecast of $27 billion to $32 billion.
Medium-Term Forecast for 2021 to 2024
Construction demand is expected to stable over the medium term. Total construction demand is forecasted to reach between $27 billion and $34 billion per year for 2021 and 2022, while the total construction demand for 2023 and 2024 are expected to reach between $28 billion and $35 billion per year.
The public sector will remain the leading contributor and is expected to reach up to $16 billion to $20 billion per year from 2021 to 2024, while the private sector is expected to stay at a moderate level due to the likely continued global economic uncertainties and the current overhang in the supply of private residential housing units.
– Construction+ Online