Singapore Construction Industry Report 2023: Growing Data Center Construction and Strong Demand for Housing Bodes well for the Sector

DUBLIN, March 9, 2023 /PRNewswire/ -- The "Singapore Construction Industry Databook Series - Market Size & Forecast by Value and Volume across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value - Q1 2023 Update, Opportunities" report has been added to  ResearchAndMarkets.com's offering.

Construction industry in Singapore is expected to grow by 2.1% to reach SGD 35,919 million in 2023.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Singapore remains intact. The construction industry in Singapore is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 2.5% during 2023-2027. The construction output in the country is expected to reach SGD 38,645.0 million by 2027.

The Singaporean construction industry has struggled to meet demands and deadlines due to persistent labor availability issues and higher construction costs in 2022. However, market conditions are projected to improve in H1 2023, as the drop in metal prices is giving some breathing space to construction firms in Singapore. While metal prices are still high, a decline has been observed in metal prices such as aluminum.

To make up for construction delays, caused by labor shortages and volatile market conditions, construction firms such as United Tec Construction are leveraging technology to save labor costs and improve productivity, by developing prefabricated units in a factory and assembling them on-site. In 2023, construction activities are expected to recover, thereby assisting the growth of the overall market from the short to medium-term perspective in Singapore.

Singapore is emerging as the leading hub for the data center market in the Asia Pacific region

Globally, the demand for data centers has surged amid growing digitalization, as more and more businesses are moving online. Amid the growing demand, Singapore is emerging as the leading hub for data centers, as more and more firms are launching new facilities in the Southeast Asian market.

In 2019, the country placed a moratorium due to various factors, including the fact that data centers are consuming over 70% of the total electricity in Singapore and it is contributing to global warming. For three years, no new data centers were allowed, however, existing projects and expansions were completed. Even during the moratorium, there were calls to allow more data center construction projects due to the increasing demand in the region.

In July 2022, Singapore authorities announced that they are inviting applications for new data centers, as the moratorium ended. With the new data center facilities, which are expected to be built over the next few years amid the growing digitalization, the publisher expects Singapore to lead the data center market in the region. Furthermore, the construction of these new facilities will also drive the growth of the Singaporean construction industry over the next three to four years.

Strong demand for housing units is driving the growth of the residential construction market in Singapore

Despite the rising interest rates and property market cooling measures, the demand for housing units has remained strong in Singapore, and the trend is projected to further continue in 2023. This growth in demand will lead to higher supply in the market, thereby supporting the growth of the residential construction sector in Singapore from the short to medium-term perspective.

Several new and ongoing residential construction projects will keep driving investment in the space in 2023. Construction, at Yew Tee, is set to begin in January 2023 to build the second vertical kampung in Singapore. The construction project, which will include social and healthcare facilities, is slated for completion in 2027. In a 10-storey residential block, the residential development will include 68 two-room flexi flats for seniors in the country. These projects, along with many others, will keep driving the growth of the residential construction segment over the next three to four years in Singapore.

Infrastructure projects to support construction industry growth in Singapore

Investment in the development of infrastructure has turned Singapore into a global economic hub over the last decade. Over the next five years, the country is expected to further pump liquidity into the development of world-class infrastructure to further drive the growth of its economy.

In 2022, Singapore and Malaysia moved ahead with their plans to connect the two countries by building and constructing a bridge that will improve transport links between the nations. If the project goes ahead, the investment in the development of transport infrastructure will further assist the growth of the Singaporean construction industry.

Over the next three to four years, the publisher expects Singapore to announce more infrastructure development projects across different segments, thereby supporting industry growth.

Scope

Singapore Economic Indicators

Singapore Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point / income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Singapore Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point / income level (luxury, mid-tier, affordable)

Singapore Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

Singapore Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction
• Singapore Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

Singapore Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Public sector
• Construction stage (new construction, re-development & maintenance)

Singapore Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Singapore Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Singapore Green Infrastructure Construction: 10- year market size & forecast in value terms

For more information about this report visit https://www.researchandmarkets.com/r/dw9yw0

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]
 
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
 
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg

SOURCE Research and Markets