Estimated Value Of Construction
The entire worth of construction contracts to be granted this year could hit a high of $35 billion.
The Building and Construction Authority (BCA) expects the entire worth of construction contracts to be given this year to strike between $28 billion and $35 billion, up from last year’s preliminary estimate of $26 billion, with the public sector accounting for about 70 percent of overall building demand, it said in a statement.
Private sector building demand, on the other hand, is projected to remain subdued at between $8 billion and $11 billion this year, in light of the property market slow down as well as the continued economic uncertainties.
In 2016, entire building demand was slightly lower than expected due to the re scheduling of important public sector projects to this year given that such projects require longer preparation times.
Looking forward, average construction demand is likely to reach between $26 billion and $35 billion per annum per annum in 2018 and 2019, and between $26 billion and $37 billion in 2020 and 2021, said the BCA.
“Although the year-to-year changes in the total value of yearly construction demand are influenced by the lumpy nature of major infrastructure projects, the overall on line building tasks or construction output is anticipated to remain at a comparatively high level,” said the BCA’s CEO, John Keung.
“Companies which are ready to change, innovate and transform to stay at the vanguard of technological invention, process re-engineering and productivity improvements are more prone to sustain competitiveness and their growth regardless of the headwinds under challenging economic conditions.”
Moving Forward in 2017
With lesser new private land to be released each year and HDB to launch more BTO, the overall activities will still increased. For example, this year, Qingjian will launch another of their new executive condo, Inz Residence in Choa Chu Kang, this will yield around more than 500+ units. And this developer has been very consistently being one of the top “construction” builder for the past few years!