BCA predicts construction demand to reach $38B by Year 2024

BCA estimates that construction demand in 2024 will range between $32 and $38 Billion nominally. This figure is above the $33.8 Billion of 2023.

BCA’s January 2023 projection of $27 to $30 billion was exceeded by $33.8 billion. BCA attributes a preliminary increase in the construction demand in Singapore in 2023 in part to higher bid prices, expedited construction awarding for private residential projects as well HDB’s public-housing projects.

Construction demand in the public sector is projected to reach $19.5billion by 2023. Major projects include Cross Island MRT Line, Phases I & II, as well HDB’s Built-to-Order development.

The demand for private sector construction increased from $12,5 billion in 2012 to $14,3 billion in 2013 due to residential development under Government Land Sales.

Between $18 billion and $20 billion of construction projects will be funded by the public sector in 2024. Public sector projects that will be awarded by 2024 include HDB BTO developments and Cross Island MRT Line Contracts (Phase 2), infrastructure works at the future Changi Airport Terminal 5 development, Tuas Port Developments, as well other major road improvements as well drainage improvement work.

According to BCA (Building Construction Authority), private construction demand will be between $14 billion and 17 billion dollars in 2024. BCA estimates that the demand for private construction in 2024 will primarily come from the GLS residential development programme, the expansion and redevelopments at the two Integrated Resorts.

Teo Jing-Siong, BCA director of strategic planing and transformation, believes that the commercial construction market will continue to grow at a rapid pace. The demand is projected to increase from $3.4 billion per year in 2023 to an estimated $5.9 to $6.6 million in 2024. Teo was speaking on the BCA-REDAS built environment and property prospects seminar held on Jan 15, 2019.

Civil engineering demand is expected to increase substantially from $7.6 billion to between $7.9 billion and $9 billion by 2023.

While the private residential demand fell from $7.6 Billion to $3.7 Billion and $4.5 Billion. One possible reason for the fall in demand is that buyers’ demand has slowed down due to reduced land stocks from previous enbloc sales.

BCA estimates that from 2025-2028, the public sector’s contribution to demand will be between $19 and $23 Billion per year. Building projects and civil works are projected as making up 70% and 30% respectively of public sector project.

Between 2025 and 2028, construction spending is expected to be between 31 billion and 38 billion dollars per year.

BCA expects construction demand in the private sector to remain steady at between 12 billion and 15 billion dollars annually, from 2025 to 28.

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