BCA estimates that construction demand grow to $38b by 2024.
In 2024, BCA estimates the total construction demands will be between 32 billion and 38 billion dollars in nominal terms. This is an increase from the previous figure of 33,8 billion dollars.
BCA projected that the total year preliminary figure would be $27-32 billion. This was in January 2023. BCA attributes the preliminary rise in construction demand to a combination of higher tender prices, faster construction awards and HDB ramping up its public housing projects.
In 2023, the public sector will spend $19.5 billion on construction. This is largely due to major projects like Cross Island MRT Line phases 1 & 2 as well as institutional building development and HDB’s Built-to-Order Developments (BTO).
Due to recent integrated developments, major hotel refurbishment and residential developments in the Government Land Sales program (GLS), private construction demand has increased from $12.5 Billion in 2022 to $14. 3 Billion in 2023.
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Public sector projects are expected to account for between $18 and $21 Billion in total construction costs by 2024. In 2024, major public sector projects will include HDB’s new BTO development, Cross Island MRT Line (Phase 2), infrastructure works for the future Changi Airport Termina 5 and Tuas Port developments.
In 2024, the private sector will contribute between $14 and $17 Billion. BCA predicts that the majority of private sector construction will be driven by the GLS Programme, expansion of both Integrated Resorts as well as redevelopments of mixed-use properties like Singtel’s Comcentre Central Mall Central Square Tanglin Shopping Centre and industrial facilities.
Teo, BCA Group Director of Strategic Planning and Transformation, stated that commercial construction demand will show the fastest growth. It is expected to grow from $3.4billion in 2023 up to a projected amount between $5.9billion and $6.6billion in 2024. Teo Jing Siong, BCA group director of strategic planning and transformation, spoke on Jan 15 at the BCA REDAS Property Prospects and Built Environment Seminar.
Civil engineering construction demand will also grow significantly, increasing from $7.6bn in 2023 up to $7.9-9bn this year.
Private residential construction demand dropped from $7,6 billion to $3.7 to $4.5 billion. The fall in construction demands could be attributed to the waning demand from buyers due to a lower stock of land at previous en bloc sales sites.
From 2025 to 2028, the annual construction demand will be between $31 billion to $38 billion.
BCA predicts that public sector projects will continue to dominate the market and contribute up to $23 billion per annum between 2025 and 2028. Projected to account for 70% of all public sector projects will be building and civil engineering work.
Major developments include MRT such as Cross Island Line, Phase 3, and Downtown Line Extension, to Sungei Kadut. Alexandra Hospital redevelopment. Integrated developments in Siglap South and Toa Payoh. A new integrated hospital at Bedok.
BCA also anticipates that the demand for private sector construction will remain stable over the medium-term, between $12 billion to $15 billion annually in 2025-2028.
