Private sector construction demand down 10% in 2014 on back of weak property market
Construction demand from the private sector moderated to $19 billion in 2014, down 10% from $21 billion in 2013.
Data from the Ministry of Trade and Industry showed that the moderation was due to a fall in construction demand for residential developments as developers remained cautious amidst a slowdown in the private residential property market.
In contrast to residential construction demand, all other segments saw higher or similar levels of demand in 2014 as compared to 2013.
Notably, industrial building demand rose by 8.1 per cent, supported by contracts awarded for Mapletree Business City II, Carros Centre and various Engineering, Procurement and Construction (EPC) projects.
In addition, demand for institutional & other building projects increased by 75 per cent, boosted by the construction of Changi Airport’s Terminal 4. On the other hand, both commercial and civil engineering construction demand remained similar to 2013’s levels.