COMMENTARY ECONOMICS FORECAST

Singapore Construction: Review 2023 and Forecast 2024

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OVERVIEW 2023
The year 2023 has witnessed significant stability in the construction sector, slowly breaking the chain of uncertainty witnessed in the construction market over the last two years. For the current year, the estimated construction demand output is projected to grow by 6.6 per cent by the year end, as compared to the previous year.

Multiple high-value public sector contracts awarded this year have been a key driver of this trend. The Land Transport Authority (LTA) has awarded several civil contracts, including the design and construction of Elias station and tunnels under the Cross Island Line-Punggol Extension valued at S$562 million, as well as the S$961 million worth of King Albert Park and Clementi stations project. An additional S$188.3 million contract was awarded for a new cycling path network in Singapore.

FORECAST 2024
Looking ahead to 2024, the public sector construction demand will continue to remain dominant over the private sector construction demand. Some anticipated projects are the approximately 1,400 units of build-to-order residential estates at Bayshore and East Coast, which are expected to be launched in 2024. Besides, the invitation of tenders for development of Greasy Waste Treatment Facility at Changi and the construction of potable water transmission pipeline along Loyang Avenue, Telok Paku Road and Nicoll Drive are expected to start by the first quarter of 2024. 

Sources: BCI Central Research and Economics; Building Construction Authority. All information is accurate as of October 2023.


This is an excerpt. The original article is published in
Construction+ Q4 2023 Issue: The Power of Construction Engineering.
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