Feature Articles
Singapore's Construction Sector: An Update on Construction Prices
21 November 2008
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On the back of strong construction demand, the construction sector grew by 20 per cent in 2007 and 18 per cent in the first half of 2008. However, growth in the sector began to moderate in the third quarter of 2008 as it grew at a slower pace of 13 per cent. There are also signs that construction cost increases may be easing after the strong growth recorded in the last two years. This article analyses the factors that have driven up construction tender prices in the past two years, and the near-term outlook for construction prices.
Rise in construction costs in the past two years…
Construction tender prices, as measured by the Tender Price Index (TPI) for building works compiled by the Building and Construction Authority (BCA), rose by 19 per cent in 2007 and an additional 15 percent in the first three quarters of 2008.
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