Summary

The construction sectors GDP grew by 3.1% year-on-year, faster than the
0.7% growth in the preceding quarter. On the other hand, the total construction
demand1 decreased by 14.7% year-on-year to $7.8 billion in the first quarter, largely
due to a reduction in demand for private sector projects following the slowdown in
private residential property market.
Average market prices for cement, granite, rebar and ready-mixed concrete
(G40 Pump) generally trended downwards compared to a quarter ago. Looking
ahead into the immediate next few months, prices for ready-mixed concrete (G40
Pump) and its raw materials are expected to remain relatively stable.

Latest Update
In the month of April 2015, preliminary average market prices of cement
(Ordinary Portland) in bulk and granite (20mm Aggregate) were $94.12 per tonne
and $20.73 per tonne respectively. Preliminary average price of ready-mixed concrete
(Grade 40 Pump) was $100.52 while that for steel rebar (16 to 32 mm High Tensile)
was $5404 per tonne in the same month.

All construction demand (contracts awarded) values stated in this article exclude reclamation projects.
Material prices included delivery to site cost.
3 Material prices excluded delivery to site cost.
4 With effect from Jan 2015, the market prices of rebar stated in the article are based on fixed price supply
contracts with contract period 1 year or less.
1
2

Detailed Review for First Quarter 2015

CONSTRUCTION GDP
The Singapore economy grew by 2.6% on a year-on-year basis in the first quarter, faster
than the 2.1% growth in the preceding quarter.5 Similarly, the construction sectors year-on-year
growth improved to 3.1%, from 0.7% in the previous quarter (Graph 1).
GRAPH 1: CONSTRUCTION GDP GROWTH RATES
16.0
14.0

% Change

12.0

10.0
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0

II

III

IV

2010

II

III

IV

2011

II

III

IV

2012

II

III

IV

2013

II

III

IV

2014

I
2015

Quarter

In tandem with the higher year-on-year growth in the construction sector as compared to
a quarter ago, its share of economic GDP in the first quarter increased slightly to 4.9%, from 4.8%
in the previous quarter (Graph 2).
GRAPH 2: CONSTRUCTION GDP CONTRIBUTIONS
5.0
4.9

% Share

4.8

4.7
4.6
4.5
4.4
4.3
4.2
4.1
4.0

II

III

2010

IV

II

III

IV

2011

II

III

2012
Quarter

Economic Survey of Singapore First Quarter 2015

IV

II

III

2013

IV

II

III

2014

IV

I
2015

CONSTRUCTION DEMAND (CONTRACTS AWARDED)

On a year-on-year basis, total construction demand decreased by 14.7% to $7.8 billion in
the first quarter as the significant fall in construction demand from the private sector outweighed
the increase in public sector demand. The contraction in the private sector construction demand
was due to lower demand for all development types with the exception of commercial
development. On the other hand, the public sector construction demand rose on the back of an
across-the-board increase in demand for all types of building projects (Graph 3 and Table 1).
GRAPH 3: CONSTRUCTION DEMAND
(IN TERMS OF CONTRACTS AWARDED)
12,000

$ Million

10,000
8,000

6,000
4,000
2,000
0
I

II

III

IV

2010

II

III

IV

2011

II

III

IV

2012
Quarter
Total

Public

II

III

IV

2013

II

III

IV

2014

I
2015

Private

TABLE 1: YEAR-ON-YEAR CHANGE IN CONSTRUCTION DEMAND

Construction Demand
2014Q1
($m)

2015Q1
($m)

Year-on-Year
Change
(%)

Both Sectors

9,148.46

7,802.41

-14.71

Public Sector
Residential
Commercial
Industrial
Institutional & Others
Civil Engineering

3,482.44
919.05
9.17
19.65
963.37
1,571.20

4,105.01
1,564.88
24.96
225.62
1,736.92
552.63

17.88
70.27
172.03
1,048.34
80.30
-64.83

Private Sector
Residential
Commercial
Industrial
Institutional & Others
Civil Engineering

5,666.02
1,740.40
392.34
1,806.08
1,314.56
412.64

3,697.40
1,165.65
718.82
1,095.24
537.09
180.61

-34.74
-33.02
83.21
-39.36
-59.14
-56.23

Development Type

On a quarter-on-quarter basis, total construction demand declined by 6.3% due in part to

the high base effect on account of the exceptionally strong private sector construction demand in
the preceding quarter (Table 2).

TABLE 2: QUARTERLY CONSTRUCTION DEMAND

Construction Demand
Development Type

2014Q3
($m)

2014Q4
($m)

2015Q1
($m)

Both Sectors

9,997.49

8,328.14

7,802.41

Public Sector
Residential
Commercial
Industrial
Institutional & Others
Civil Engineering

6,424.77
1,897.27
41.03
449.88
1,862.54
2,174.04

3,287.51
730.45
0.62
11.83
877.93
1,666.67

4,105.01
1,564.88
24.96
225.62
1,736.92
552.63

Private Sector
Residential
Commercial
Industrial
Institutional & Others
Civil Engineering

3,572.72
1,266.46
713.51
811.15
204.61
577.00

5,040.63
1,276.98
2,014.42
1,354.74
158.66
235.84

3,697.40
1,165.65
718.82
1,095.24
537.09
180.61

Public Sector
The total value of public sector residential construction contracts awarded in the first
quarter amounted to $1.6 billion, more than doubled the $0.7 billion recorded in the preceding
quarter. The increase was due to more new public housing projects awarded in the first quarter
which comprised of 8,830 housing units to be built in estates including Tampines, Sembawang,
Yishun and Jurong West.
Similarly, the construction demand for all other building types grew both quarter-onquarter and year-on-year. In particular, the construction demand for institutional development
turned in a strong performance in the first quarter, fuelled by the award of a number of notable
projects such as the National Centre for Infectious Diseases & Centre for Healthcare Innovation,
construction of stabling yard at Gali Batu Depot and LTAs Walk2Ride Programe involving the
construction of sheltered walkways for various MRT and LRT stations. The construction demand
for industrial development also increased in the first quarter, supported by the construction of
JTC Food Hub @ Senoko.
By contrast, civil engineering construction demand declined by 66.8% in the first quarter to
$0.6 billion as compared to the $1.7 billion recorded in the preceding quarter. Nonetheless, the
demand is expected to pick up in the remaining quarters of the year in view of a number of major
MRT and road contracts that are expected to be awarded during this period.
Private Sector
The total private sector construction demand fell by 26.7% on a quarter-on-quarter basis
and 34.7% on a year-on-year basis in the first quarter of 2015 largely due to a reduction in
construction demand for residential, industrial and civil engineering developments.
Following the slowdown in the residential property market, private sector residential
construction demand has been moderating since the fourth quarter of 2013 and declined by a
further 8.7% quarter-on-quarter to $1.2 billion in the first quarter. The major condominium
projects awarded in the first quarter were North Park Residences at Yishun Central 1, Symphony
Suites at Yishun Avenue 6 and Sims Urban Oasis at Sims Drive.

The demand for commercial developments declined significantly quarter-on-quarter but

was still higher compared to a year ago. The sharp quarter-on-quarter fall was mainly on account
of the high base caused by the award of Project Jewel in the preceding quarter. Other notable
commercial developments awarded in the first quarter of 2015 included Frasers Tower at Cecil
Street and North Point City at Yishun Central 1. Similarly, the industrial construction demand
also fell in the first quarter but demand remained supported by awards of various factory
developments such as Micron Fab 10X and the Jurong Grease Plant Project.
By contrast, the construction demand for institutional development increased quarter-onquarter to $537 million, backed by projects such as the Australian International School, Dulwich
College and Singapore Chinese Cultural Centre.
In spite of the quarter-on-quarter and year-on-year reduction, the construction demand
for civil engineering projects at $181 million was still comparable to its average quarterly
historical level. The demand was mainly supported by contracts awarded by SP Powerassets
Limited for the supply and installation of power cables.

CONSTRUCTION VOLUME (PROGRESS PAYMENTS)

Total nominal construction output registered a slight 0.2% increase year-on-year to $9.1
billion in the first quarter, supported by a pick up in on-site construction activities from the
private sector (Graph 4).
GRAPH 4: CONSTRUCTION VOLUME
(IN TERMS OF CERTIFIED PROGRESS PAYMENTS)
10,000

$ Million

8,000

6,000

4,000

2,000

II

III

IV

2010

II

III

IV

2011

II

III

IV

2012

II

III

IV

2013

II

III

2014

IV

I*

2015

Quarter

* - preliminary data

Total

Public

Private

The public sectors total construction output contracted by 3.3% on a year-on-year basis to
$3.8 billion, but the volume was still marginally higher than the preceding quarter. Public
residential, commercial and industrial output in the first quarter remained comparable to the
preceding quarter. On the other hand, construction output from institutional developments
increased by 14.2% quarter-on-quarter, driven by on-going projects such as the Ng Teng Fong
Hospital, National Art Gallery and Tampines Town Hub. Other major projects which helped to
sustain the public sector construction output in the first quarter included the construction of HDB
flats, Phase 3 of the Liquefied Natural Gas (LNG) Terminal at Jurong Island, land preparation
works for Changi Airport development, Thomson-East Coast MRT Line (TEL) and Downtown
Line Stages 2 & 3.

Total private sector construction output increased slightly compared to a year ago but fell
marginally quarter-on-quarter, reaching $5.3 billion. The work done in the first quarter was
underpinned by a year-on-year increase in commercial and civil engineering construction output,
supported by projects such as Mediapolis @ One-North, Hotel development at Victoria Street and
utilities work for the supply and installation of power cables. Similar to past trend, residential
building construction output accounted for the largest share of the overall private sector
construction activities, backed by on-going condominium developments such as Leedon
Residence at Leedon Heights, La Fiesta at Sengkang Square, Skypark Residences at Sembawang
Crescent and Corals at Keppel Bay at Keppel Bay Drive.

CONSTRUCTION MATERIALS
Quarterly demands for cement, granite and ready-mixed concrete decreased while that for
rebar surged in the first quarter as compared to the preceding quarter. Similarly, the average
market prices of all of the key construction materials had softened as compared to a quarter ago.
Cement
Demand and Supply
Demand for cement decreased by 2.4% quarter-on-quarter to 1.504 million tonnes (Graph
5). Almost all of cement demand was supported by imports, with sources from Japan (58%),
Taiwan (15%), China (12%), Malaysia (9%), Vietnam (5%) and South Korea (1%).
GRAPH 5: DEMAND FOR CEMENT
1,800
1,600
1,400

('000 tonnes)

1,200
1,000
800
600
400
200
0
I

II

III

2010

IV

II

III

2011

IV

II

III

IV

2012

II

III

2013

IV

II

III

2014

IV

I
2015

Quarter

Prices
Average market price of bulk cement (with delivery) decreased from $95.70 per tonne in
December 2014 to $94.30 per tonne in March 2015. Cement prices are likely to remain stable in the
coming months.
Granite
Demand and Supply
Demand for granite decreased by 8.7% quarter-on-quarter to 5.3 million tonnes (Graph 6).
Malaysia and Indonesia remained as the key sources of granite imports.

GRAPH 6: DEMAND FOR GRANITE

7,000
6,000

('000 tonnes)

5,000
4,000
3,000

2,000
1,000
0
I

II

III

IV

2010

II

III

IV

2011

II

III

IV

2012

II

III

IV

2013

II

III

IV

2014

I
2015

Quarter

Prices
Average market price of 20mm granite decreased from $ 21.60 per tonne in December 2014
to $21.00 per tonne in March 2015. The average price for 20mm granite is expected to remain
stable in the coming months.
Ready-Mixed Concrete
Demand and Supply
Demand for ready-mixed concrete decreased by a marginal 0.3% quarter-on-quarter to 4
million cubic metres (Graph 7).
GRAPH 7: DEMAND FOR READY-MIXED CONCRETE
4,500
4,000

('000 cubic metres)

3,500

3,000
2,500
2,000
1,500
1,000
500
0
I

II

III

2010

IV

II

III

2011

IV

II

III

IV

2012
Quarter

II

III

2013

IV

II

III

2014

IV

I
2015

Prices
Average market price of ready-mixed concrete (Grade 40 Pump with delivery) decreased
from $103.30 per cubic metre in December 2014 to $100.50 per cubic metre in March 2015. The
average price for ready-mixed concrete (G40 Pump) is expected to remain stable in the coming
months.
Steel Reinforcement Bars
Demand and Supply
Demand6 for steel reinforcement bars (rebars) in the first quarter surged by 36.7% over the
last quarter to 0.60 million tonnes (Graph 8). The significant increase in imports in the first quarter
was likely in part driven by the depressed global rebar prices. China remained the key import
source and accounted for 96% of the imports.
GRAPH 8: DEMAND FOR STEEL REINFORCEMENT BARS
700
600

('000 tonnes)

500
400
300

200
100
0
I

II

III

2010

IV

II

III

2011

IV

II

III

IV

2012

II

III

IV

2013

II

III

2014

IV

I
2015

Quarter

Prices
The average market price for 16 to 32 mm high tensile rebars continued to drop from
$612.50 per tonne in December 2014 to $565.50 per tonne in March 2015. Some market analysts
anticipate steel prices to remain low over the medium-term in view of chronic overcapacity
compounded with a collapse in iron ore prices and a growth slowdown in China.

29 May 2015
BUILDING AND CONSTRUCTION AUTHORITY

Demand for steel rebar is measured in terms of local production and net imports.