SINGAPORE, Singapore’s construction sector is poised for a strong performance in 2025, with total demand projected to hit between S$32 billion and S$53 billion, fuelled by a surge in public housing developments and major infrastructure projects such as Changi Airport Terminal 5 and the Marina Bay Sands (MBS) expansion.
The Building and Construction Authority (BCA) shared the forecast in its latest industry outlook, citing resilient public sector demand and a steady pipeline of private residential and commercial developments.
According to the BCA, the public sector will remain a key driver, expected to contribute between S$18 billion and S$23 billion, or roughly 45% of total demand. Key government-led projects include new Build-To-Order (BTO) flats, public healthcare facilities, and transport infrastructure such as rail upgrades and road works.
Meanwhile, the private sector is forecast to generate between S$14 billion and S$30 billion in demand, with major contributions from the planned expansion of Marina Bay Sands, the resumption of delayed commercial and hospitality developments, and upcoming data centre projects. The private residential segment is also expected to remain active, buoyed by steady homebuyer demand and land sales.
One of the most anticipated catalysts is Changi Airport Terminal 5, which recently resumed construction after a pandemic-induced pause. The multi-billion-dollar project is expected to significantly boost construction activity and create thousands of jobs over the next few years.
The Marina Bay Sands expansion, including a new hotel tower and state-of-the-art entertainment facilities, is also set to inject fresh momentum into the construction landscape, with works targeted to commence in 2025.
Despite global economic uncertainties, Singapore’s construction industry has shown resilience. Total construction demand for 2024 is on track to hit the S$35 billion to S$38 billion range, supported by strong public housing numbers and continued investment in critical infrastructure.
The BCA noted that while inflationary pressures and manpower constraints remain challenges, ongoing efforts to digitalise the sector, improve productivity, and attract local talent will help ensure sustainable growth.
Industry players welcomed the positive outlook, calling it a sign of recovery and confidence in Singapore’s long-term development plans.
“The upcoming pipeline offers opportunities not just for builders, but also for engineers, architects, and technology providers,” said a spokesperson from the Singapore Contractors Association. “The focus on innovation and green construction will further enhance the sector’s competitiveness.”
The BCA will continue to monitor market conditions and work closely with stakeholders to manage costs, manpower needs, and environmental sustainability as the sector moves toward a more robust and digital future.
