Singapore Construction Demand to Hit $47–53b in 2026

Singapore’s construction demand is projected at $47–53 billion in 2026, driven largely by public sector projects and infrastructure investment, according to SJ Group’s Construction Market Review and Outlook 2026. This follows a $50.5 billion valuation in 2025. Costs are expected to rise 2–5% amid global pressures, with material prices up 5–15% due to Middle East tensions and oil above $128 per barrel.

Construction demand

The sector carried strong momentum, supported by Changi Airport Terminal 5 works, MRT expansion, and healthcare facilities, with civil engineering demand forecast at $11.6–13.4 billion. Residential demand will ease, though 19,600 Build-To-Order flats are planned, while commercial demand is projected at $6.1–6.7 billion, led by Marina Bay Sands expansion. Industrial activity remains supported by advanced manufacturing and AI-linked data centres. Labour constraints persist, prompting calls for digitalisation, modular construction, and localised skills testing from 2027 to boost productivity and shorten hiring timelines.

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