×

Public sector projects to sustain construction demand in 2015

Thursday, 8 January 2015

Singapore, 8 January 2015 - Construction contracts for the built environment sector is expected to reach between $29 billion to $36 billion in 2015, given a sustained pipeline of public sector projects. This follows an exceptionally strong performance in 2014 where the total construction demand set a new record of $37.7 billion, fuelled by a higher volume of institutional and civil engineering construction contracts. Such projects include Sengkang General and Community Hospitals, Tampines Town Hub project and the award of various major contracts for the construction of Thomson-East Coast MRT Line as well as land preparation works for the upcoming Changi Airport development.

Outlook for 2015

This year, public sector projects are expected to account for an estimated 60% or $18 billion to $21 billion of the total construction demand. However, while public housing projects are anticipated to moderate this year in consideration of a more stabilised public housing market, public construction demand will remain stable due to an increase in industrial projects and the sustained pipeline of institutional and civil engineering works.

Meanwhile, private sector construction demand is anticipated to moderate to between $11 billion to $15 billion compared to $18 billion in 2014 as developers may adopt a cautious stance amid a slowdown in private home sales and global economic uncertainties. Nevertheless, the slowdown is likely to be cushioned by a rise in private sector civil engineering projects such as the proposed infrastructure works for the development of the Changi East Runway 3. (Please refer to Annex A for details on construction demand).

Forecast for 2016 to 2019

The average construction demand is expected to be sustained between $27 billion to $36 billion in 2016 and 2017 and $26 billion to $37 billion in 2018 and 2019 per annum, in view of mega public sector infrastructure projects required to meet the long-term needs of our population and maintain the competitive advantage of Singapore's economy.

Table: Review and Outlook for Construction Demand (Year 2014 - 2019)

Year

Construction Demand

(Value of Contracts Awarded)

Public

Private

Total

2014p

$19.7 billion

$18.0 billion

$37.7 billion

2015f

$18-21 billion

$11-15 billion

$29-36 billion

2016-2017f

$16-20 billion

per year

(60% from building projects & 40% from civil engineering projects)

-

$27-36 billion

per year

2018-2019f

$26-37 billion

per year

p: Preliminary f: Forecast

Footnote:

Annex A - Contracts Awarded (Excl. Reclamation) by Sector & Type of Work(23KB .pdf)

Speech by SMS Lee Yi Shyan at the BCA-REDAS Built Environment & Property Prospects Seminar 2015

Portable document format version of the media release is also available (85KB .pdf).

Popular e-Services

CWRS

The Construction Workforce Registration System (CWRS) is an online portal for CoreTrade and Multi-skilling registration and the renewal of Direct R1 eligibility.

Online Registration for Verification System

ORV allows you to register the workers for Identity Verification and check your registration status online.

Online PTO System

Lift and escalator owners, contractors and Authorised Examiners (AEs) can apply for and view applications for Permit to Operate (PTO) here.