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Construction demand projected to range between $47 bil and $53 bil in 2025, says BCA

By Nicholas Lam

/ EdgeProp Singapore |

January 23, 2025 7:23 PM SGT

Construction demand in the private residential sector is projected to decrease from $7.2 billion last year to $5.5 to $6 billion this year (Photo: Samuel isaac Chua/EdgeProp Singapore)

Construction demand for 2025 is projected to range between $47 billion and $53 billion, according to estimates by the Building and Construction Authority (BCA).

It marks a 6.3% to 19.9% y-o-y increase compared to the $44.2 billion worth of construction contracts awarded in 2024.

"The higher construction demand in 2025 is mainly due to several large-scale contracts that are expected to be awarded this year, such as the expansion of Marina Bay Sands Integrated Resort and the development of Changi Airport's Terminal 5", says Teo Jing Siong, group director of strategic planning and transformation at BCA.

Read also: Hong Kong and Macau are Asia’s most expensive construction markets: Turner & Townsend

Other contributors include high-specification industrial buildings, educational developments, healthcare facilities, Mechanical and Engineering contracts for the Cross Island Line and Thomson-East Coast Line extension and infrastructure works for the Woodlands Checkpoint extension and the Tuas Port.

According to Teo, the demand for public sector, institutional and other building construction is expected to show the most growth.

Public sector contract value is forecast to increase to between $8.2 billion and $9.2 billion from $7.9 billion recorded in 2024. Meanwhile, Teo says institutional & other building construction is expected to rise to between $15.6 billion and $17 billion from $11.7 billion last year.

Construction demand in the private residential sector is projected to decrease from $7.2 billion last year to $5.5 to $6 billion this year. One reason for this fall in construction demand could be the moderation of land stocks from past en-bloc sales sites.

Projecting forwards, BCA expects the total construction demand to reach an average of between $39 billion and $46 billion per year from 2026 to 2029.

Tags:

Construction Building and Construction Authority BCA

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