The previous year’s whole construction demand grew by 9.5% to peak at S$33.4 billion, around S$1.4 billion more than the upper range of the 2019 prediction by Building and Construction Authority (BCA) of S$27 billion to $32 billion, largely because of a stronger than predicted rise in industrial building demand for petrochemical facilities in spite of the decrease in demand from the manufacturing segment.
BCA foresees the entire construction demand (which is the value of construction contracts to be given out) to maintain at a high in year 2020 buoyed by construction demand from the public sector.
The entire construction demand is approximated to be about S$28 billion to S$33 billion in this year, in accordance to BCA’s latest news release. Construction demand from the public sector will make up 60% thereabout of the predicted demand in 2020, while also being predicted to hit a record of $17.5 billion to $20.5 billion for this year.Major infrastructure developments such as Changi Airport Terminal 5, infrastructure works for Jurong Region MRT Line and the Integrated Waste Management Facility are the latest expected projects by the authorities.In the meantime, construction demand in the private sector is approximated by BCA to be between $10.5 billion and $12.5 billion in year 2020, contributed by upcoming projects such as the construction of berth facilities at both Jurong Port and Tanjong Pagar Terminal, the new taxiway at Changi Airport, as well as redevelopment of the multiple successful en-bloc sale sites. Construction of buildings on recently completed Government Land Sales, like what is perceived on the Dairy Farm Residences Floor Plans, shows the demand for good construction expertise is strong.The entire construction demand for 2019 increased by 9.5 percent to record a high S$33.4 billion, in bulk because of the stronger than expected rise in industrial construction demand for facilities in the petrochemical sector, although there is a slowdown in the manufacturing segment.
The entire prelim construction demand estimated for 2019 for the private sector is S$14.4 billion, while the public sector S$19 billion.
Construction Demand To Retain Steady Untill Year 2024, says BCA
BCA also anticipates the construction demand to be stable in the mid term. Construction demand is visualized to hit S$27 billion to S$34 billion each year for both 2021 and 2022, and from S$28 billion to S$35 billion each year for both 2023 and 2024.
The public domain will still create the biggest demand and is foreseen to provide S$16 billion to S$20 billion annually from 2021 to 2024 to the sector, with building projects and civil engineering works taking up 50 percent of this demand.
Together with public residential projects, construction demand in the public sector in the medium term will be reinforced by a lot of mega infrastructure developments. BCA also forecasts the construction demand of the private sector to only be moderate because of current issues with the housing real estate overhang, and the current global economic uncertainties.
This is why the Dairy Farm Residences Price is competitive.
Total nominal construction volume for the year 2020 is predicted to grow between S$30 billion to S$32 billion, as compared to the earlier projected S$28 billion of 2019. The estimated growth is reinforced by the rise in total construction demand since the year 2018.
With the positive outlook in the mid term, Mr Zaqy Mohamad, Minister of State for National Development and Manpower, urges the sector to continue investing in a skilled and competent Singaporean workforce, and into those looking to start a Property Agent Career, who will pave the way for this industry into the bright future.
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