Posted on 28 Jan 2022
Singapore’s public sector projects are expected to keep construction demand strong this year, Kallanish notes. The Building and Construction Authority (BCA) projects demand for rebar will reach 1-1.2 million tonnes this year, up from 900,000t in 2021.
It forecasts 2022 construction demand, as measured by the value of construction contracts to be awarded, will total S$27-32 billion (US$20-23.7 billion). Singapore’s public sector is expected to contribute S$16-19 billion, or about 60% of total construction demand. This demand will include public housing projects, developments in healthcare and transportation infrastructure works.
Singapore’s private sector construction demand is expected to reach S$11-13 billion in 2022, similar to last year. BCA notes that residential building demand is expected to moderate this year amid recent property cooling measures and more cautious market sentiment.
However, the authority expects commercial building demand is expected to rise as hotels and attractions undergo refurbishment to prepare for a pickup in tourism, and older commercial premises undergo redevelopment to enhance asset values. It adds that private sector industrial building demand is expected to be supported by construction of energy storage facilities and biopharmaceutical plants in the country.
Last year’s preliminary total construction demand rose by 42% on-year to about S$30 billion largely on public housing and infrastructure projects as well as an improvement in investment sentiment. This is higher than BCA’s earlier forecast of S$23-28 billion, mainly due to an increase in tender prices resulting from manpower and materials cost inflation.
Over the medium-term, BCA expects total construction demand to reach S$25-32 billion annually from 2023 to 2026. BCA expects the public sector to lead demand and contribute S$14-18 billion/year during the period. About half of the demand will come from building projects and the other half from civil engineering works.
BCA projects that private sector construction demand will be stable, reaching about S$11-14 billion/year from 2023 to 2026 on the back of a healthy investment appetite amid Singapore’s strong economic fundamentals.
Source:Kallanish
