Singapore’s construction sector saw positive growth in the 4th Quarter of 2022, with a 10% year-on-year increase. According to Turner & Townsend, this points to the industry’s strength and stability. The consultancy forecasts the growth continuing throughout 2023 due to pent-up demand for commercial and residential projects, as well as the Singapore Government’s proposed $4 billion National Productivity Fund top-up and Enterprise Innovation Scheme, among other measures.

However, Turner & Townsend cautions that Singapore’s construction sector remains at risk of external challenges such as high inflation and rising interest rates. To combat these difficulties, the consultancy recommends investing in collaborative contracting, which promotes closer consultation among stakeholders.

In support of this effort, the Building and Construction Authority recently refreshed the Built Environment Industry Transformation Map to combine the Construction and Real Estate (Facilities Management) maps. This new value-chain approach, along with embracing new ways of working and technologies, can improve efficiency and boost productivity, says Khoo Sze Boon, Turner & Townsend’s managing director for Singapore and Vietnam.

“To transform Singapore’s Built Environment for tomorrow, we need to drive collaborative contracting efforts today,” adds Khoo.

Despite current challenges, there are promising signs for Singapore’s construction sector. The estimated total construction demand for 2023 is expected to reach between $27 billion and $32 billion, in line with projections by the Building and Construction Authority in January, enabling Singapore to capitalize on a number of upcoming projects.

Altura EC, a 99-year Altura EC leasehold executive condominium in the heart of Bukit Batok Town, is currently up for bid by HDB until 8 March 2022. With its nearness to amenities, schools, and the MRT station, this property draws attention from family buyers looking for an affordable option.

Turner & Townsend’s report shows that the construction industry is likely to outperform the wider economy this year and offers optimism for further growth in the future. By investing in collaboration among stakeholders, Singapore can seize this opportunity and drive value into both big and small construction projects across the city.