Let us discuss about the future of the Singapore construction industry

Hi singapore

hey do u know if they are building more 40-storey HDB blocks on this site in Toa Payoh? I recently went there this week to look at the completed 40-storey blocks.

http://img128.exs.cx/img128/2839/tp0310d.jpg

Hm...interesting take there. ;)

I studied about the state of the local construction industry thanks to taking a cross-faculty module in the department of real estate, and got to know some inside stories of it. Yes, they do point out various problems with it which needs to be rectified, for instance, by the fact that it faces shortages in skilled labour, has a safety problem, is dogged by a highly fragmented industry with too many small players, etc.

However, contrary to popular notions that it is going to go down and out thanks to how people perceive the country to be "fully constructed" already are quite missing the point. Urbanisation is a process which continues to build and rebuild, and it dosent always involve building into "virgin" grounds, as stated by singapore. And by the fact that recent safety fiascos once again shows up the perils of non-action, it is good to see that the relevant organisations and government agents are finally attempting to do something concrete about it all, one of which, I hope, is a consolidation of the industry, although that might cause some job loses.

Looks at the building boom at Novena.


The boom at CBD started in the late 1960s, yes...



I say Singapore actually developed way too fast in the 1970s, with whole towns built.

from The Business Times

Construction set to end drag on economy

21 Oct 2004

Market players say demand is growing and sector is poised to expand next year

By VINCE CHONG

THE construction sector's contribution to Singapore's growth is likely to turn positive from next year, with demand in the sector expected to grow marginally to $11 billion this year from $10 billion in 2003.

This year, business is expected to be driven by private residential projects and mega multi-million government projects such as public housing project Pinnacle@Duxton and Marina Barrage dam.

Construction demand had plunged from a peak of $24 billion in 1997 but is now expected to stabilise at $12 billion to $13 billion in the medium term. Last year's demand fell more than 30 per cent from $14.5 billion in 2002.

Simon Lee, executive director of the Singapore Contractors Association Ltd, said:'We are likely to see a final marginal contraction in Q4, but it should be the last one for now given that construction demand is forecast to improve in the next few years if nothing goes wrong.'

Contribution to the country's economic growth refers to actual work done, which, for the construction industry, typically takes 12 months to filter through after demand is made in the form of tenders awarded. This means that the slowdown posted this year is the result of demand having fallen between 2002 and 2003.

Earlier this month, figures from the Ministry of Trade & Industry (MTI) showed that Singapore's gross domestic product fell 2.3 per cent in Q3 from Q2 based on early estimates from just July and August data. This decline comes after four quarters of growth.

Construction contributed to the slowdown by falling 9.9 per cent from an earlier contraction in the second quarter.

Seah Choo Meng, president of the Singapore Institute of Surveyors and Valuers' quantity surveying division, noted that as in previous downturns, the sector lags the improvement in other industries by at least six to nine months.

'Construction is always the last to go down and the last to come up but we're certainly seeing signs of confidence returning,' he told BT.

'What's worrying is the high oil price. How we manage will be quite critical. Still, the industry has to stop being pessimistic.'

Going forward, it has been reported that the government is expected to award more than $5 billion worth of contracts, with public housing deals possibly coming to $1.3 billion. The private sector is expected to contribute up to $5 billion to the industry.

And the industry is expecting a boost from the likely awarding of tenders this quarter for the Housing and Development Board's high-profile 1,000-plus-unit Pinnacle@Duxton and the Public Utilities Board's Marina Barrage.

The Pinnacle is estimated to be worth about $300 million - more than half of the $585.3 million in building works tendered out by the statutory board last year, according to HDB Infoweb.

The Marina Barrage is estimated to cost between $250 million and $300 million and is expected to create a new water source in five years' time as well as act as a tidal barrier to check flooding in such low-lying areas as Chinatown, Boat Quay, Jalan Besar, Farrer Park and Geylang.

Last year, Singapore's single-largest construction contract of $322 million was awarded for building Republic Polytechnic's campus at Woodlands