More than 500 professionals from the built environment and property sectors gathered on 8 January for the BCA-REDAS Built Environment and Property Prospects Seminar 2020 with Mr Zaqy Mohamad, Minister of State for National Development and Manpower as Guest of Honour. The annual flagship event, jointly organised by the Building and Construction Authority (BCA) and Real Estate Developers Association of Singapore (REDAS), ushers in each new year with a preview of the market prospects and provides a road map for the year ahead.

The annual flagship event offers a preview of the market prospects and provides an industry road map for the year ahead.

More than 500 professionals from the built environment and property sectors gather on 8 January for the BEPP Seminar 2020.

Construction Demand for 2020

The seminar began with insightful morning presentations on global economic trends, projected local construction demands and overseas market opportunities. It was shared that the total construction demand (value of construction contracts to be awarded) in 2020 is projected to remain strong with a range of between S$28 billion and S$33 billion. Public sector construction demand, will make up about 60% of the projected demand for the year, spurred by major infrastructure projects such as the Integrated Waste Management Facility, infrastructure works for Changi Airport Terminal 5 and the new MRT lines.

Private sector construction demand is projected to be between S$10.5 billion and S$12.5 billion, supported by projects such as the redevelopment of en-bloc sale sites, recreational developments at Mandai Park, the new Changi Airport taxiway and berth facilities at Jurong Port and Tanjong Pagar Terminal. This projection, however, has not factored in the expansion of the two Integrated Resorts (IRs).

Highlights of Speeches

In their speeches, both BCA’s CEO, Mr Hugh Lim, and Mr Zaqy Mohamad highlighted how research and innovation would continue to be key focuses for the upcoming year. This includes advancing in key capabilities such as Design for Manufacturing and Assembly (DfMA), digitalisation and green buildings to remain competitive at home and abroad.

In the drive to make DfMA the default mode of construction for Singapore, the public sector will continue to take the lead, for example, with Housing & Development Board (HDB) aiming to adopt DfMA methods such as Prefabricated Pre-finished Volumetric Construction (PPVC) or Advanced Precast Concrete System (APCS) for 75% of all its units launched in 2020.

Mr Lim shared that Integrated Digital Delivery (IDD) has proven to be a game changer for the sector, with firms which have embarked on the IDD journey reporting an increase in productivity and a reduction in costs. The year will see continued investment in developing an IDD ecosystem with enabling solutions and standards such as a Construction Digital Platform that would further integrate the entire built environment value-chain from design, construction to maintenance. 

The green buildings movement continues to grow in traction among developers. Findings from an independent consultancy study validated that Green Mark buildings reap net positive savings throughout their lifecycle with the energy savings far outweighing the upfront investment cost. Mr Lim also shared positively that at end of 2019, Singapore is half way toward the long-term goal of having 80% green buildings by 2030.

Invited panel guests engage in lively conversations with the audience on hot topics relating to digitalisation and innovation, and the need to develop a collaborative ecosystem for business opportunities and building niche capabilities and strategies fin Asia.

Panel Discussion

During the panel discussion, Mr Lim and fellow prominent built environment leaders  Mr Chan Mun Kit, DCEO, Architects 61 Pte Ltd, Mr Lee Ang Seng, MD, Beca Carter Hollings & Ferner (SE Asia) Pte Ltd, Mr Tan Wey Pin, MD, Construction, Lum Chang Building Contractors Pte Ltd, Ms Lynette Leong, Chief Sustainability Officer, CapitaLand Group and Mr Song Seng Wun, Director, CIMB Private Banking) dived more deeply into the ways firms could create more opportunities both locally and overseas through research, innovation or specialisation to develop their own competitive niche. One such catalyst for technological innovation is the membership-based Built Environment Technology Alliance or BETA. Bringing together built environment firms and solution providers, the alliance intends to be a technology adoption and innovation platform for members to tap on shared resources and facilities, and remain ahead of the curve.

The afternoon session panel discussion shed further light on the outlook for the property sector for the office and private residential markets as well as macro trends and the rise of Industry 4.0.

Real Estate Market Prospects

The seminar also saw presentations on the latest developments in the real estate market by speakers Ms Christine Li, Head of Research, Singapore & Southeast Asia,  Cushman & Wakefield Singapore, Ms Regina Lim, Head of Capital Markets Research – Southeast Asia, JLL, Mr Lim Kien Kim, Executive Director & Managing Partner, RHT Chestertons Singapore Pte Ltd and Mr Alan Cheong, Executive Director, Research & Consultancy, Savills (Singapore) Pte Ltd.

Presentation topics included updates on the office and private residential markets provided by Ms Li and Mr Cheong respectively. Ms Lim also shed light on some of the macro trends that will be influencing the property market, while Mr Lim spoke on the evolution of Industry 4.0 and how it could help industrialists maximise output and minimise downtime.

With the industry transformation creating new and attractive jobs for example in DfMA and project management, Mr Zaqy Mohamad also urged the industry to continue investing in a skilled and competent local workforce that will lead and drive the built environment sector into the future. He said, “With the positive outlook for the sector in the next five years, our firms should look ahead and make good use of the opportunity to digitalise, invest and build on our innovation-driven growth and groom local talent.“