Construction Demand In Singapore To Remain Strong In 2020: BCA

Last year’s total construction demand expanded by 9.5% to reach S$33.4 billion, about S$1.4 billion higher than the upper bound of BCA’s 2019 forecast of S$27 billion to $32 billion, mainly due to a stronger than expected increase in industrial construction demand for petrochemical facilities despite the slowdown in the manufacturing sector.

The Building and Construction Authority (BCA) expects the total construction demand (which is the value of construction contracts to be awarded) to remain high in 2020 buoyed by demand for public sector construction.

The total construction demand is estimated to be around S$28 billion to S$33 billion this year, according to BCA’s recent news release. Public sector construction demand will take up around 60% of the expected demand in 2020, while also being projected to record $17.5 billion to $20.5 billion this year.

Major infrastructure projects such as the Integrated Waste Management Facility, infrastructure works for Jurong Region MRT Line and Changi Airport Terminal 5, are expected by the authority to push public sector construction demand.

Meanwhile, private sector construction demand is estimated by the BCA to reach between $10.5 billion and $12.5 billion in 2020.

Total preliminary construction demand in 2019 for the private and public sectors stood at $14.4 billion and $19 billion respectively.

BCA also expects the construction demand to be steady during the medium term. Demand is seen to reach $27 billion to $34 billion per year for 2021 and 2022, and from $28 billion to $35 billion each year for 2023 and 2024.

Ref: Property Report