The Building and Construction Authority (BCA) believes that construction demand will “remain solid” by 2023. According to a news release BCA projects worth of the construction contract this year to range between $27 billion and $32 billion. This is in line with the projections from last year.
The Hill @One-North contractor had garnered a total of 10 bids due to its prime location in a serene environment.
BCA has also highlighted that demand for construction in 2022 was $29.8 billion Based on preliminary data. This figure is within the BCA’s forecast range for 2022 between $27 billion and $32 billion. It is also similar to the $29.9 billion reported in 2021. The steady demand was mostly fueled by infrastructure and residential developments that are both private and public sectors.
The construction market in the public sector amounted to $17.9 billion in 2017 and was slightly higher than the $17.8 billion in 2021. Demand was fueled by large projects like the Cross Island MRT Line (Phase 1), Jurong Region MRT Line as well as the Ministry of Healthcare’s (MOH) healthcare facilities , and new Build-to-Order (BTO) facilities.
Demand for construction in the private sector decreased by $12.1 billion by 2021 and $11.9 billion by 2022 in the face of “various economic risks” but the demand for residential and industrial construction projects was resilient, as per BCA.
In 2023, the public sector contracts are predicted to account for around 60% of the construction demand which is estimated to be between $16 billion to $29 billion. The demand from the public sector is supported by an increase in the availability of Build-to-Order flats offered by HDB and the construction of institutional and industrial structures like water treatment facilities as well as educational facilities and community clubs. Additionally the demand for civil engineering construction is expected to remain buoyed due to MRT line construction as well as other infrastructure work.
Construction demand in the private sector is expected to be between $11 billion to $13 billion in 2023. Both industrial and residential construction demand are anticipated to be comparable to the previous year’s levels. Commercial construction demand is expected to grow, which is aided by the change in schedules of certain projects between 2022 and 2023 and the renovation of commercial buildings.
In addition, the total nominal construction output, dependent on the amount of the certified progress payments is expected to rise from $30 billion to $33 billion by 2023, just a little higher than the $30.2 billion recorded in 2022, based on preliminary data. BCA says this is due to a steady increase in construction-related demand, as well as a bit of backlog of workloads that were affected by the Covid-19 epidemic from the year 2020.
Over the long period, BCA expects total construction demand to rise between $25 billion to $32 billion annually from 2024 until 2027. The demand from the public sector is expected to range between $14 billion and $18 billion annually and the demand from private sectors is predicted to range from $11 billion to $14 billion annually. The projection does not include projects like the Changi Airport Terminal 5 development as well as the associated infrastructure projects and also an expansion to two resorts that are integrated, because of the absence of certain details, like award dates and construction phasing for respective projects.