The total value of construction contracts to be awarded this year could hit a high of SGD35 billion
Construction site of a modern skyscraper in Singapore
The Building and Construction Authority (BCA) expects the total value of construction contracts to be awarded this year to hit between SGD28 billion and SGD35 billion (USD25 billion), up from last year’s preliminary estimate of SGD26 billion (USD18 billion), with the public sector accounting for about 70 percent of total construction demand, it said in a statement.
The BCA forecast demand from the public sector to increase from about SGD15.8 billion (USD11 billion) last year to between SGD20 billion (USD14 billion) and SGD24 billion (USD16.6 billion) in 2017, on the back of an increase in demand for most building types and civil engineering works.
Private sector construction demand, on the other hand, is projected to remain subdued at between SGD8 billion (USD5.5 billion) and SGD11 billion (USD7.6 billion) this year, in view of the continued economic uncertainties and the property market slowdown.
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In 2016, total construction demand was slightly lower than expected due to the re-scheduling of major public sector projects to this year given that such projects require longer preparation times.
Looking ahead, average construction demand is expected to reach between SGD26 billion (USD18 billion) and SGD35 billion (USD24 billion) per annum in 2018 and 2019, and between SGD26 billion (USD18 billion) and SGD37 billion (SGD25.6 billion) per annum in 2020 and 2021, said the BCA.
“Although the year-to-year fluctuations in the total value of annual construction demand are influenced by the lumpy nature of major infrastructure projects, the overall on-line construction activities or construction output is expected to stay at a relatively high level,” said the BCA’s CEO, John Keung.
“Companies that are prepared to change, innovate and transform to stay at the forefront of technological innovation, process re-engineering and productivity improvements are more likely to sustain their growth and competitiveness despite the headwinds under challenging economic conditions.”
This story originally appeared on PropertyGuru.com.sg on 9 January 2017
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Source : property-report.com
Read more…Singapore construction activity expected to rise by billions in 2017
