Construction demand continues apace, resulting in Building and Construction Authority (BCA) revising its forecast for construction demand for 2007. It now expects building contracts to reach between $19 billion and $22 billion in value, up about $3 billion from its earlier estimate of between $17 billion and $19 billion.
Ms Fu: Sunny forecast offers both opportunities and challenges for sector. In a press statement released yesterday, BCA also said that for the first five months this year, construction demand reached about $7.6 billion in terms of contracts awarded.
It also said that the upward revision in construction demand could be attributed to the rise in residential and commercial demand stemming from the current property boom as well as higher construction costs.
Making reference to the revised figures last night, Minister of State for National Development Grace Fu added: 'This buoyant outlook offers both opportunities and challenges for the building sector.'
Speaking at the anniversary dinner of the Singapore Institute of Valuers and Surveyors (SISV) last night, Ms Fu also emphasised the need for sustainable development.
In March, Ms Fu announced that the government was considering amending the Building Control Act to impose minimum requirements on environmental sustainability that are equivalent to BCA's Green Mark certified standards for new buildings and existing ones that undergo major retrofitting.
Last night, Ms Fu added that this initiative was making progress. She said: 'BCA has started consulting the industry players, including SISV, on the proposed legislative requirements.'
Ms Fu also reiterated that the government is aiming to reduce the reliance on sand and granite by 30 to 50 per cent over the next five years and that SISV members can play a key role in influencing consumption or construction materials and methods.
The private sector will, however, have a larger role to play.
According to BCA, of the forecast construction contracts to be awarded this year, private sector construction is expected to make up about 70 per cent of the demand.
Some major projects that are due to be awarded later this year include the Khoo Teck Puat Hospital in Yishun, construction parcels for the two Integrated Resorts, the redevelopment of Ocean Building and some private residential developments, including Reflections at Keppel Bay, a condo at Quayside Collection, Sentosa and The Seafront On Meyer condo.
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