Page 6 - SBD2223 eBOOK Final 14Sept2022
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                 SINGAPORE BUILDERS DIRECTORY 2022/2023
 Preliminary Actual Construction Demand in 2021
BCA revealed that in 2021, the preliminary total construction demand had increased by 42 percent to about S$30 billion compared to 2020, driven mostly by public housing and infrastructure projects, and an improvement in investment sentiments. The figure was 7 percent higher than the upper bound of BCA’s earlier forecast of S$23 billion to S$28 billion, mainly due to increase in tender prices from manpower and materials cost inflation.
The public sector construction demand increased from S$12.2 billion in 2020 to S$18.2 billion in 2021, underpinned by major projects such as the Cross Island MRT Line, Jurong Region MRT Line, Tuas Water Reclamation Plant and new Build-To-Order (BTO) units. Correspondingly, the private sector construction demand expanded from S$8.9 billion in 2020 to S$11.8 billion in 2021. There is a higher demand for residential, commercial and industrial building developments as the economy recovers.
Forecast for 2023 to 2026
The increase in construction demand is expected to be sustained for the next few years, with BCA estimating that the figure will reach between $25 billion and $32 billion annually from 2023 to 2026.
Leading the demand will be the public sector with a contribution of S$14 billion to S$18 billion per year from 2023 to 2026. Half of the demand from the public sector will come from building projects and the other half from civil engineering works.
Seminar attendees were told that public residential construction demand should moderate to about S$4.8 billion to S$5.1
billion, lower than the preliminary demand of S$5.5 billion seen in 2021. Between S$3.5 billion and S$3.7 billion are expected to go towards new flats, while S$1 billion is expected to be used to upgrade existing HDB flats. “HDB did announce that they will ramp up (demand), but by the time they ramp up, the effect will only come in 2023 due to the time lag between launches and construction commencement.”
Besides public housing developments, there are various major developments in the pipeline, such as MRT projects including the Cross Island Line (Phases 2 and 3) and its Punggol Extension and the Downtown Line Extension to Sungei Kadut, the Toa Payoh Integrated Development, redevelopment of Alexandra Hospital and a new integrated hospital at Bedok.
Meanwhile, the private sector construction demand is expected to remain steady and reach about S$11 billion to S$14 billion per year from 2023 to 2026. “This is in view of the healthy investment appetite amid Singapore’s strong economic fundamentals.” said BCA.
It was announced that there will be 109 projects in the next two years using Design for Manufacture and Assembly (DfMA)
technologies, with the Advanced Precast Concrete System (APCS) being the most widely used in residential, healthcare and school projects.
Geopolitical tensions could further impact the price of construction materials, which are already set to rise.
Currently, ready-mixed concrete demand is expected to increase to between 12.5 million and 14 million cubic metres, from 11.6 million cubic metres in 2021. Demand for precast concrete is also projected to rise to between 1.6 million and 1.8 million cubic metres, up from 1.1 million cubic metres in 2021, while steel rebar demand is expected to climb to between 1 million and 1.2 million tonnes, up from 0.9 million tonnes last year.
Construction Output
BCA figures noted that progress payments for work being done are projected to hit $29 billion to $32 billion this year, up from the preliminary estimate of about $26 billion for 2021. The uptake is due to a steady level of construction demand and the backlog of remaining workloads that were affected by the COVID-19 pandemic since 2020.
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