Other contributors include hospitality project expansions, such as Marina Bay Sands Tower 4 and Resorts World Sentosa upgrades, along with a housing rollout islandwide, adds DBS.
The Building and Construction Authority (BCA) projects total construction demand averaging $39 billion to $46 billion per year from 2026 to 2029, reflecting a structurally stronger outlook.
Construction demand with a mid-point of $42.5 billion in 2026 would be “considerably higher” than during the construction catch-up in the post-pandemic period from 2022 to 2024 and prior to the pandemic, notes DBS.
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Singapore’s economic growth resilience will be tested in 2026 as it navigates the “2Ts” — tariffs and the tech cycle, say DBS analysts. They forecast real GDP expansion at 1.8% next year, close to potential growth, but cooling from DBS’s estimated robust performance of 4.0% in 2025.
“This considers trade-related moderation posed by tariff challenges and uncertainties, but cushioned by the modern services and construction sectors,” they add.
