Singapore’s construction sector to grow 5.4% in 2023
By Catrin Jones25 May 2023
Global construction consultancy, Linesight, has released new research indicating the levelling of prices in key commodities in the first quarter of 2023. While the industry continues to face challenges such as labour shortages and elevated prices for certain materials, conditions are improving and the industry is expected to regain momentum in the medium to long term.
The company says that Singapore’s economic growth is forecast to slow in 2023, however the construction industry is expected to grow at 5.4%, due largely to planned public housing projects.
The strengthening of global demand coupled with China’s reopening has led to volatile copper prices that rose sharply by 11.2% from Q4 2022 to Q1 2023. Linesight adds that domestic prices will continue to come under pressure as a result of demand pressures from public infrastructure development projects under Singapore’s Green Plan 2030.
Following an increase in the first half of last year, cement prices have remained elevated, held up by high production costs and improving demand. The global construction consultancy says that prices are expected to rise marginally in Q2 2023, as construction activity begins to pick up.
In addition, steel prices declined in the first quarter of 2023 by 6.2% for steel rebar and 1.5% for flat steel. Steel prices are said to be set to pick up again buoyed by rising demand, with the commencement of works on a number of large civil engineering projects and increased demand from China.
Michael Murphy, Director at Linesight Singapore, said, “Whilst some elevated material prices pose a challenge in the short term, improving market conditions are setting the stage for the construction sector to get back on track.
“As confidence among industry players builds, there has also been increasing appetite for greener and modern construction methods, such as prefabrication, to align with Singapore’s sustainable development agenda and to futureproof operations against market headwinds. To tap into the opportunities presented by the construction sector’s growth trajectory and emphasis on sustainability, having strategic partners to help navigate an evolving landscape is key.”
You can see the full report here.