Construction activity in Singapore hits low in Q2

There were fewer private residential and non-residential workloads.

Construction activities in Singapore declined in Q2 2024, driven by fewer private residential and non-residential workloads.

The RICS Global Construction Monitor revealed that the headline indicator for Q2, which captures overall construction sector activity, declined from +14 in Q1 to 0, the lowest since Q3 2021’s negative 17.

Private residential workloads also fell to its lowest reading since Q3 2021, dropping to -13 from +8 in Q1 2024.

Fewer players also reported increased infrastructure workloads in Q2, with the indicator dropping to +42 from +59 in Q1.

Workloads across subcategories, such as social projects like schools and hospitals, ICT, energy, water and waste, and transport, however, showed promising growth.

Meanwhile, 12-month expectations for the construction sector looked significantly more downbeat, with indicators for private residential workloads dropping from +12 in Q1 to 0, and private non-residential declining from +4 in Q1 to -29.

 Infrastructure expectations, however, held strong with a reading of +57, up from +54 in Q1.
 
Competition was cited as the main factor holding the construction sector back (+61), followed by skills shortages (+57) and cost of materials (+52).

Across the region, there is a lack of skilled trades (+70), managers (+61) and Quantity Surveyors (+61).