Dublin, Jan. 16, 2024 (GLOBE NEWSWIRE) -- The "Singapore Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Singapore was expected to grow by 2.3% to reach SGD 36.28 billion in 2023. Despite near-term challenges in certain construction sectors, medium to long term growth story in Singapore remains intact. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.7% during 2023-2027, with construction output forecast to reach SGD 39.41 billion by 2027.
The pent-up demand is aiding the surge in construction activities, with the bulk of the work happening in residential and infrastructure construction space in Singapore. This trend is expected to further continue beyond 2023, leading into H1 2024.
While the domestic construction sector has the potential to continue its upward growth trajectory from the short to medium-term perspective, it will remain vulnerable to global headwinds including rising interest rates and high inflation. For sustainable growth, industry players should work in collaboration across the supply chain, which will remain critical in driving an advanced and integrated sector.
Demand for construction works is projected to remain stable throughout H1 2024
Driven by the public sector, the construction demand has been projected to remain stable throughout the year.
With the rescheduling of significant projects from 2022 to 2023 and the ongoing redevelopment of aging commercial properties aimed at enhancing asset values, the demand for commercial buildings is expected to surge. With projects like Build-To-Order (BTO) flats, MRT lines, and water treatment plants in the pipeline, the publisher is maintaining a stable growth outlook for the construction market in Singapore.
Private sector construction demand is also projected to remain comparable and in line with the 2022 value. Private and public sector spending is expected to remain stable in H1 2024, despite the challenges faced by the construction market, including rising material costs.
Construction material prices are projected to remain high in Q1 2024 in Singapore
Although the construction industry is projected to maintain a steady growth rate, the market will be faced with higher construction material prices in Singapore. Following an increase in prices in H1 2022, prices of construction materials like cement have remained elevated due to high production costs and rising demand. The reopening of the Chinese economy has also led to volatile copper prices in H1 2023.
The decline in steel prices in H1 2023, on the other hand, has offered some respite to developers and the broader construction market in Singapore. However, steel prices are also projected to pick up pace in Q1 2024 on the back of robust demand, including in China. The commencement of construction activities on a number of civil engineering projects will also drive the steel prices upward in Singapore from the short to medium-term perspective.
Data center construction activities to support the growth of the commercial construction market in Singapore
Investment in data center space is poised to grow again in the Singaporean market, as the state city seeks to end a years-long moratorium on new developments. Since 2019, Singapore has imposed a moratorium on new data center developments, although previously approved facilities were permitted to proceed. In a partial easing of this ban in July 2022, the Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) introduced a pilot scheme. Under this initiative, companies were given the opportunity to bid for permission to establish new data center facilities.
Singtel, in August 2023, started the construction activities of its 58MW data center in Singapore. The data center, which is poised to go live in 2025, will provide growth support to the construction market in the state city over the next few quarters. Going forward, more such construction projects are projected to be announced in Singapore, thereby supporting the growth of the broader market from the short to medium-term perspective.
This market intelligence report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in Singapore, this databook offering primarily provides data-centric analysis with charts and tables.
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry in Singapore.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities in Singapore by construction value.
- Construction Cost Structure Analysis: Provides outlook of different construction cost like material, labour, equipment, and others costs by construction value. At granular level, this module provides in detail material cost analysis by type of materials and labour cost by type of work by construction value.
Market Data and Insights:
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in Singapore. KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
- Singapore Economic Indicators
- Singapore Top Cities Construction Data
- Singapore Residential Building Construction Coverage
- Singapore Residential Green Building Construction Coverage
- Singapore Commercial Building Construction Coverage
- Singapore Commercial Green Building Construction Coverage
- Singapore Industrial Green Building Construction Coverage
- Singapore Institutional Building Construction Coverage
- Singapore Institutional Green Building Construction Coverage
- Singapore Infrastructure Construction Sectors
- Singapore Green Infrastructure Construction
- Singapore Construction Cost Structure Analysis
For more information about this report visit https://www.researchandmarkets.com/r/45okaz
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