Construction demand in Singapore to range between S$47 billion and S$53 billion: BCA
Normalised to real values, 2025’s demand will range between S$35 billion and S$39 billion
THE total value of construction contracts is expected to range between S$47 billion and S$53 billion in nominal terms in 2025.
In comparison, the Building and Construction Authority (BCA) said preliminary total construction demand for 2024 reached S$44.2 billion in nominal terms, exceeding its mid-year forecast of between S$35 billion and S$41 billion.
The agency attributed this to more public institutional projects being rolled out, as well as public and private housing projects.
Normalised to real values, 2025’s demand will range between S$35 billion and S$39 billion. This will be between 0.3 and 11.7 per cent higher than pre-pandemic levels in 2019, BCA said.
“The strong demand is underpinned by the expected award of contracts for several large-scale developments, such as Changi Airport Terminal 5 (T5) and the expansion of the Marina Bay Sands Integrated Resort, alongside public housing development and upgrading works,” it said.
High-specification industrial buildings, educational developments, healthcare facilities, as well as mechanical and engineering contracts for rail lines are also expected to contribute to the increased demand.
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Between 2026 and 2029, BCA expects construction demand to range between S$39 billion and S$46 billion per year, although it said that the schedules and phasing of projects are subject to change due to unforeseen risks.
Changi T5 is also expected to be a one-off exceptional project, and industry demand could “eventually moderate” after this period, the authority added.
In his speech at BCA Academy on Thursday (Jan 23), Minister for National Development Desmond Lee said major upcoming developments also include new community facilities, waste management plants and the rejuvenation of schools.
He said developers, consultants and builders will need to collaborate more closely to more effectively seize these opportunities.
More than 15 projects from the public and private sectors will be piloting collaborative contracting, with five of them piloting NEC4, an international contract form that supports such contracting, he added.
“To support firms keen to adopt the NEC4 contract, BCA has developed additional clauses, which we refer to as ‘W’ and ‘Z’ clauses, that adapt the NEC4 contracts to suit local industry practice and our local context,” he said.
Collaborative contracting is meant to allocate risks and gains more equitably between different stakeholders in construction, instead of a more adversarial approach more commonly taken.
The government is also giving companies more time to adopt to Corenet X which is its “one-stop integrated digital shopfront” that will streamline how companies seek regulatory approvals.
Lee announced that Corenet X submissions will be mandatory for all new projects with gross floor area that are 30,000 square metres or larger from Oct 1, 2025.
From Oct 1, 2026, Corenet X submissions will be mandatory for all new projects, and all ongoing projects will have to be onboarded to the system by Oct 1, 2027.
Previously, all new projects were meant to be submitted via Corenet X from Apr 1, 2025.
Lee said that the government has refined its processes and platforms based on feedback from the industry.
“We know that significant changes need to be made through many of our existing workflows in order for our sector to benefit from the breakthrough that Corenet X seeks to achieve for us,” he said.
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