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Cooling property market could signal weaker construction demand ahead

CONSTRUCTION companies have been on a tear this recent half-year on improved earnings following the relaxation of Covid-19 restrictions on the inflow of migrant workers.

But the industry may be sailing into troubled waters as Singapore's red-hot property market begins cooling.

Investors should look past the currently elevated levels of earnings across the whole sector before wading in.

For instance, Chip Eng Seng's construction division posted net profit of S$16.3 million for the half-year to Jun 30, a steep increase from the S$3.1 million reported for H1 2021.

Meanwhile, construction company Lian Beng Group reported a 67 per cent jump in net profit to S$43.5 million for its financial year ended...

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