Singapore’s total construction output is projected to increase to between $43 billion and $46 billion this year in nominal terms. The average projected output of $44.5 billion will be around 7% higher than 2025’s preliminary estimate of about $41.7 billion.
This forecast is based on the contracts awarded in the past few years and the continued strong construction demand expected in 2026, according to the Building and Construction Authority (BCA).
Construction demand has remained consistently high since 2023, announced the regulator at the BCA-REDAS Built Environment And Real Estate Prospects Seminar 2026 on Jan 22.
Current conditions are presenting a “Goldilocks” scenario, and a 7% increase in output for any industry “can be easily managed” if players plan ahead, says Teo Jing Siong, group director, strategic planning and transformation office, BCA.
While the projected 2026 nominal construction output is about 57% higher than 2019’s nominal level, its real or deflated value at between $32 billion and $34 billion (excluding the impact of construction cost inflation) is estimated to be about 8.5% higher than the real output at $30.4 billion in 2019.
Residential construction demand to moderate
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Singapore’s construction demand is expected to hold firm at between $47 billion and $53 billion in nominal terms in 2026, unchanged from the forecast range in 2025.
This will be driven by projects such as the Changi Airport Terminal 5 development, the Marina Bay Sands expansion, the New Tengah General & Community Hospital and the Downtown Line 2 extension, says National Development Minister Chee Hong Tat in his opening address.
As at end-2025, preliminary actual construction demand reached $50.5 billion in nominal terms, within BCA’s earlier forecast of $47 billion to $53 billion. The continued uptrend was mainly attributed to institutional and housing projects.
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Looking ahead, BCA’s forecasts for construction demand are split across six categories: public residential, private residential, commercial, industrial, institutional and others, and civil engineering.
First, construction demand for public residential projects is expected to moderate from a record high of $9.5 billion in 2025 to a range of $6.2 billion and $6.8 billion this year.
Second, construction demand for private residential projects, which came in at some $6.2 billion in 2025, is similarly anticipated to moderate to between $5 billion and $5.5 billion this year.
According to BCA, this reflects the measured scaling back of the number of confirmed Government Land Sales (GLS) sites since 2025 as well as the reduced stock from past en bloc sales sites. Despite the anticipated moderation, the level in 2026 is expected to remain comparable with that in 2023 and 2018/2019, when the en bloc sales activity was “intense”.
According to Teo, likely major private residential projects this year include Chuan Grove Residences, jointly developed by Sing Holdings and Sunway Developments; and Telok Blangah Residences by Kingsford Development on the site of the former Keppel Golf Course.
Another major project is Pinery Residences, an upcoming mixed-use development by Hoi Hup Realty and Sunway Developments expected to launch within 1Q2026.
Meanwhile, construction demand for commercial projects is projected to strengthen by some three times higher than the $2.2 billion logged in 2025 to between $6.1 billion and $6.7 billion in 2026.
Likely major projects include the Marina Bay Sands integrated resort expansion and the redevelopments of Tanglin Shopping Centre and HarbourFront Centre, says Teo.
Fourth, industrial building construction demand is anticipated to remain comparable with levels in 2020 to 2024, at between $4.6 billion and $5.4 billion in 2026, down from $7.1 billion recorded in 2025.
As the largest category, institutional building construction demand is projected to stay strong, moderating slightly from $16.1 billion in 2025 to between $13.5 billion and $15.3 billion in 2026, according to BCA.
Finally, civil engineering construction demand is projected to strengthen for the second year running, up from $7.1 billion and $9.3 billion recorded in 2024 and 2025 to a range of between $11.6 billion and $13.4 billion in 2026.
Major works include the MRT contracts for the Downtown Line and Thomson-East Coast Line, new berths and stacking yards for Tuas Terminal and major roads, viaducts and cycling path networks, says Teo.
“Over the medium-term, a consistent stream of infrastructure projects, stable public housing construction, extensive institutional building developments and active urban revitalisation efforts are positioned to assure a steady development in the construction sector,” says Teo.
