{"id":57936,"date":"2017-06-15T10:10:17","date_gmt":"2017-06-15T03:10:17","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/construction-sector-to-benefit-from-higher-govt-spending\/"},"modified":"2017-06-15T10:15:16","modified_gmt":"2017-06-15T03:15:16","slug":"construction-sector-to-benefit-from-higher-govt-spending","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/construction-sector-to-benefit-from-higher-govt-spending\/","title":{"rendered":"Construction sector to benefit from higher gov\u2019t spending"},"content":{"rendered":"


\n\u00a0
\nWith the government planning to spend an additional S$700 million in public sector infrastructure projects over the next two years, Singapore\u2019s construction industry is expected to fare better this year after struggling from a weaker economy and higher manpower costs in the past few years, reported The New Paper.
\nThe bonanza of infrastructure projects includes upgrading of public amenities like sports facilities and community clubs.
\nIn January, the Building and Construction Authority (BCA) forecasted that the overall value of construction contracts to be awarded would range from S$28 billion to S$35 billion compared to last year\u2019s preliminary projection of S$26.1 billion.
\n\u201cThe projected stronger construction demand is due to an anticipated increase in public sector construction demand from about S$15.8 billion last year to between S$20 billion and S$24 billion this year.\u201d
\n\u201cThe public sector is expected to contribute about 70 percent of the total construction demand, boosted by an increase in demand for most building types and civil engineering works,\u201d it said.
\nHowever, demand for construction works from the private sector is expected to remain soft in 2017 and would likely hover between S$8 billion and S$11 billion.
\nNevertheless, the stronger construction demand from the public sector would benefit the 10 biggest construction and engineering firms listed on the Singapore Exchange (SGX).
\nAccording to a report from SGX in May, the 10 largest Singapore-listed construction players achieved an average return of 27 percent year-to-date versus the nine percent gain of their counterparts in Asia Pacific.
\nNotably, the former only recorded a 16.6 percent increase on their five-year average annualised return compared to the 20.1 percent growth posted by the latter group.
\nIn particular, two of the best performing construction companies on SGX are Lian Beng and Hock Lian Seng Holdings, which respectively posted a gain of 34 percent and 59.7 percent so far this year.
\nThese firms are primarily involved in public sector projects and are considered by the BCA as A1 grade contractors, meaning they can take part in tenders for government projects of any size.
\nFor instance, Lian Beng revealed in March that it won the job to redevelop a Housing Board industrial complex at Defu for S$435 million \u2014 its largest construction contract ever.
\nMeanwhile, Hock Lian Seng announced last month that it won the right to develop a 4,890 sq m site at Tampines Industrial drive for S$3.708 million. Last year, it teamed up with Sembcorp to carry out S$1.12 billion worth of development works for three runways at Changi Airport.
\n\u00a0
\nThis article was edited by Denise Djong.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Construction sector to benefit from higher gov\u2019t spending<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 With the government planning to spend an additional S$700 million in public sector infrastructure...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-57936","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-f4s","jetpack-related-posts":[{"id":113501,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/construction-demand-in-singapore-to-remain-strong-in-2020-bca\/","url_meta":{"origin":57936,"position":0},"title":"Construction demand in Singapore to remain strong in 2020: BCA","date":"January 9, 2020","format":false,"excerpt":"\r BCA also expects the construction demand to be steady during the medium term. Demand is seen to reach $35 billion by 2024. Last year\u2019s total construction demand expanded by 9.5% to reach S$33.4 billion, about S$1.4 billion higher than the upper bound of BCA\u2019s 2019 forecast of S$27 billion\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":119994,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/public-sector-projects-to-drive-construction-sectors-recovery\/","url_meta":{"origin":57936,"position":1},"title":"Public sector projects to drive construction sector\u2019s recovery","date":"January 19, 2021","format":false,"excerpt":"\r Public sector projects to drive construction sector\u2019s recoveryThe Cross Island MRT Line, relocation of Singapore Science Centre and the Toa Payoh Integrated Development are amongst the upcoming major public sector projects that will contribute to\u00a0construction demand in 2021. Construction demand is projected to recover in 2021, driven by public\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/01\/unsplash-construction-site.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":76390,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bca-sees-steady-improvement-in-construction-market\/","url_meta":{"origin":57936,"position":2},"title":"BCA sees steady improvement in construction market","date":"January 12, 2018","format":false,"excerpt":"\r With the rescheduling of \u201ca few major public sector infrastructure projects\u201d, total construction contracts awarded last year fell below expectations at $24.5 billion, reported Channel News Asia citing preliminary estimates from the Building and Construction Authority (BCA). The value of construction contracts to be awarded in 2018 is expected\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":118673,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bca-expects-construction-demand-to-drop-this-year\/","url_meta":{"origin":57936,"position":3},"title":"BCA expects construction demand to drop this year","date":"September 18, 2020","format":false,"excerpt":"\r Projected construction demand for this year is expected to fall between $18 billion and $23 billion, down from its earlier forecast of between $28 billion and $33 billion in January. The Building and Construction Authority (BCA) has lowered its forecast for projected construction demand for this year to between\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40039,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/spore-construction-activity-to-pick-up-in-2017\/","url_meta":{"origin":57936,"position":4},"title":"S\u2019pore construction activity to pick up in 2017","date":"January 9, 2017","format":false,"excerpt":"\r The total value of construction contracts to be awarded this year could hit a high of $35 billion.\u00a0 The Building and Construction Authority (BCA) expects the total value of construction contracts to be awarded this year to hit between $28 billion and $35 billion, up from last year\u2019s preliminary\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40069,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-construction-activity-expected-to-rise-by-billions-in-2017\/","url_meta":{"origin":57936,"position":5},"title":"Singapore construction activity expected to rise by billions in 2017","date":"January 9, 2017","format":false,"excerpt":"\r 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\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/57936"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=57936"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/57936\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=57936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=57936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=57936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}