Singapore Construction Sector Witnesses Strong Momentum With Rising Selectivity
- brg_news_room
- Aug 27
- 1 min read
Singapore: Singapore’s construction sector is entering H2 2025 with strong momentum, backed by a 60% surge in contract awards in the first four months of the year. Project pipelines remain robust with no major cancellations, though the market is now operating close to full capacity. This is creating a tighter pool of available contractors and increasing selectivity in bidding. As a result, tender prices are forecast to rise by 3–5% this year, compared to only 1% in 2024. Further escalation of up to 5% is projected in 2026, adding cost pressure for clients.
Strong demand continues to stem from housing, transport, industrial, science and life sciences projects, supported by continuity in government policies post the 2025 elections. However, challenges such as labour shortages in skilled trades and PMET roles are constraining delivery. Freight costs on long-lead equipment are adding further strain, despite some material price relief from Chinese oversupply.
Source: Turner and Townsend
