ccording to the latest data released by the Building and Construction Authority (BCA) and reports from market research institutions, Singapore’s construction industry is expected to maintain strong demand and stable growth momentum in 2025–2026, supported by multiple key indicators.
1. Construction Market Size Continues to Expand in 2025
BCA projects that the total value of construction contracts awarded in 2025 will range between SGD 47 billion and SGD 53 billion.
After normalising against pre-pandemic 2019 levels, this represents an estimated growth of approximately 0.3% to 11.7%, indicating a continued recovery and upward demand trend in the market.
2. Positive Growth Expected in Industry Output
Research data indicates that Singapore’s construction sector is expected to achieve real-term growth of approximately 5.2% in 2025, driven primarily by sustained investment in:
- Transport infrastructure
- Commercial developments
- Large-scale engineering and construction projects
This reflects continued momentum in core construction segments.
3. Long-Term Growth Outlook Remains Resilient
Market forecasts suggest that from 2026 onwards, Singapore’s construction market will continue to expand, with a projected compound annual growth rate (CAGR) of over 4.2% from 2026 to 2035.
This indicates steady long-term market expansion and structural resilience.
4. Major Infrastructure Projects Provide Sustained Demand
Large national infrastructure projects — such as Changi Airport Terminal 5 — have commenced or are progressing steadily.
These mega-projects not only increase long-term project volumes but also provide stable order pipelines for construction firms, contractors, and the broader supply chain.
5. Diversified Market Structure Supports Growth Stability
Future construction demand will not be limited to traditional residential and commercial sectors.
Growth will also be driven by:
- Transport infrastructure
- Industrial developments
- Public facilities and utilities
This diversification helps spread market risk while creating sustained opportunities for specialised construction services and technical solutions.
Summary: Why the Market Remains Active
- High contract award value → Estimated SGD 47–53 billion
- Real-term industry growth of ~5.2% → Low risk of negative growth
- Long-term CAGR above 4% → Stable medium- to long-term outlook
- Major infrastructure projects → Continuous increase in project orders
Overall, Singapore’s construction market remains active, resilient, and supported by strong structural fundamentals.
