Singapore Construction Market Review and Outlook
Continuing the trend that prevailed in 2016, 2017 has characteristically seen a downward trend in construction volume in the private sector, although the public sector’s somewhat sustained spending in infrastructure projects helped to ameliorate the gloom.
The dampened private housing market seems to be finally bottoming out as property prices rebounded slightly in Q4. In the whole of last year we have witnessed very aggressive pricings for government land sales and private collective sales (en-bloc) that was driven by the desire of both foreign and local developers to expand their land banks in Singapore. The number of en-bloc transactions hit a fresh high with developers snapping up more than 30 properties in 2017, with more expected to follow suit this year.
On the commercial front, there is an uptick in demand, even with more than 1,000,000 square feet of office spaces available with the completion of One Marina, Guoco Tower and OUE Downtown. Grade A offices’ rental in the CBD is expected to increase in 2018, driven mainly by the growing co-working spaces scene and demand for premium office spaces. While the retail sector recorded a 4.7% growth year-on-year, it continues to experience sustained pressure from the emerging e-commerce platform and growing vacancies.
Looking forward to the next 12 months and beyond, analysts are expecting the local economy to expand steadily, albeit at a slightly reduced pace.
Threesixty Cost Management Pte Ltd is a subsidiary of Surbana Jurong which specialises in cost management and contractual administration from project inception to completion.