Singapore’s construction sector, the largest domestic segment, will be a “bright standout” in 2026 and over the coming years, says DBS Group Research.
DBS analysts, led by senior economist Chua Han Teng, expect building activity to be lifted by major multi-year transport infrastructure investments, such as Changi Airport Terminal 5, Tuas Port and the North-South Corridor.
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.
