SINGAPORE - Construction contracts for the built environment sector are expected to reach between $29 billion to $36 billion this year, fuelled by a healthy pipeline of public sector projects, the Building and Construction Authority (BCA) said on Thursday.
This is down from last year's record high of $37.7 billion total construction projects.
Public sector projects will account for about 60 per cent or up to $21 billion of construction demand this year, which is higher than it has been in the past five years.
Meanwhile, private sector demand is expected to moderate between $11 billion and $15 billion this year, down from $18 billion last year as developers remain cautious amid a slowdown in private home sales and global economic uncertainties, said the BCA.
Upcoming public sector projects include major healthcare and infrastructure works such as the Sengkang General and Community Hospitals, the Tampines Town Hub project, as well as contacts for the upcoming Thompson-East Coast MRT line and Changi Airport Terminal 5.
"Construction demand over the next five years will remain strong. BCA expects contract values to range between $26 billion and $37 billion per year," Mr Lee Yi Shyan, Senior Minister of State for Trade and Industry and National Development told attendees at a seminar on Thursday.
The event on the built environment and and property prospects was organised by the BCA and the Real Estate Developers' Association of Singapore (Redas).