Singapore building demand up to S.13 billion this year: BCA

The private sector's construction demand is expected to reach between S $11 billion and S $13 billion this year, comparable to the volume in 2021.

The latest property cooling measures are expected to moderate residential building demand year-on-year, due to more cautious market sentiments, said BCA.

Commercial building demand is expected to increase as hotels and attractions undergo refurbishment to prepare for inbound tourism travel. Older commercial premises are earmarked for redevelopment to enhance asset values.

The construction of energy storage facilities and biopharmaceutical manufacturing plants is expected to spur industrial building demand in the private sector.

BCA said the investment sentiments and public housing and infrastructure projects were a major factor in the growth of the economy.

The increase was about 7 per cent higher than the upper bound of BCA's earlier forecast of S $23 billion to S $28 billion, due to an increase in tender prices resulting from manpower and materials cost inflation.

The public sector construction demand went from S $12.2 billion in 2020 to S $18.2 billion in 2021, backed by major projects such as the Cross Island Line, the Jurong Region Line, the Tuas Water Reclamation Plant and new Build-To-Or units.

In 2020, construction demand in the private sector went from S $8.9 billion to S $11.8 billion in 2021, supported by higher demand for residential, commercial and industrial building developments as the economy recovers.