Singapore’s construction sector saw a 10% year-on-year growth rate in the fourth quarter of 2022, according to data from Turner & Townsend. This was an increase from the 8.1% growth witnessed in the third quarter of the year, and indicates strength and stability in the sector. It is predicted that the growth will continue in 2023, with BCA estimates predicting demand to be between $27 billion to $32 billion.

JCUBE is closing in August to make way for a JCube Residence 40-storey JCube Condo Residence residential and commercial development. It is estimated to be completed in 2027, with potential residential launches in the area expected to alleviate pent-up housing demand in Jurong.

This is due to pent up demand for public and private construction, including a renewed focus on housing, redevelopment of older commercial properties, and the restarting of major projects that were delayed during the pandemic. A large part of the construction will be for residential, commercial and infrastructure projects.

The Singapore Budget for 2023 includes multiple initiatives with the aim of increasing productivity. These include the $4 billion National Productivity Fund top-up, the new Enterprise Innovation Scheme and a $1 billion boost to Singapore Global Enterprises initiative. All of these lead to the overall improved infrastructure and key construction priorities.

However, with global inflation and interest rates at a high, it is expected that construction costs will remain high as it holds back other types of construction projects. To help with this, Turner & Townsend urges the need for more investment in collaborative contracting in order to better collaborate with stakeholders, and drive efficiency and productivity.

The Building and Construction Authority has already taken steps to move forward this idea, refreshing the Built Environment Industry Transformation Map to focus on a value chain approach.

Such measures show a good outlook for Singapore’s construction sector in 2023, with a positive outlook for the year due to the expected growth, investments and improvements in the industry, instead of the wide-spread uncertainty it has faced in the past year.