The Building and Construction Authority (BCA) has projected the total construction demand in Singapore for the year 2023 to be between USD 27 billion and USD 32 billion. This demand is the estimated value of construction contracts that will be awarded in that year.
Approximately 60% of the total construction demand, valued between USD 16 billion and USD 19 billion, is expected to come from the public sector. This is due to a strong pipeline of public housing projects, which will be ramped up by the Housing Development Board’s (HDB) increasing supply of Build-To-Order (BTO) flats. Furthermore, there is expected to be a substantial contribution to public sector demand from industrial and institutional building construction, with a greater number of projects focused on the construction of water treatment plants, educational buildings, and community clubs. Demand for civil engineering construction is also anticipated to stay firm, given continued support from MRT line construction and other infrastructure projects.
Meanwhile, private sector construction demand is projected to remain steady, with an estimated value of between USD 11 billion and USD 13 billion in 2023, similar to the figures in 2022. Both residential and industrial building construction demand is expected to be similar to last year’s level, supported by the development of new condominiums and high-specification industrial buildings. The rescheduling of some major projects from 2022 to 2023, as well as the redevelopment of old commercial premises to enhance asset values, is expected to increase commercial building demand.
(Source: Building and Construction Authority)