Private residential projects are starting to decrease.
The robust expansion in the construction sector is expected to taper off in coming quarters, a report by Standard Chartered revealed.
The construction sector grew 3.1% year-on-year in the first quarter, from 0.7% in the fourth quarter of 2014. On a quarter-on-quarter basis, the sector grew at an annualised rate of 12.9%, significantly faster than the 2.2% growth in the preceding quarter.
Although the pickup in construction activity provided a modest upside to growth, StanChart cautions that the boom will not last.
“Construction growth, a large component of investment, may also slow in the coming quarters. Planned development is decreasing faster than current construction, particularly in the private residential sector,” he said.