Singapore construction industry to grow 4.2% annually from 2026 to 2029: Linesight

Atiqah Mokhtar

/ EdgeProp Singapore

January 14, 2026 10:21 AM SGT

propertyeditor@edgeprop.sg

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Construction activity in Singapore is expected to be supported by transport infrastructure investment, as well as additional data centre capacity (Picture: Samuel Isaac Chua/EdgeProp Singapore)

The Singapore construction industry was a standout performer within the Asia Pacific (Apac) region in 2025, according to research by consultancy firm Linesight. The firm estimates that the Singapore construction industry expanded by 5.2% last year, supported by transport and commercial projects, including the Changi Terminal 5 expansion and the Marina Bay Sands upgrade.

The upbeat performance was also reflected in other Apac countries such as Malaysia and India, which saw their construction industries grow 8.3% and 7.1%, respectively. Elsewhere, Japan’s construction industry saw an estimated growth of 1.6% in 2025, while Australia also maintained steady momentum, growing 3.8%.

On the flipside, South Korea’s construction industry contracted an estimated 9.1% last year due to political instability, which impacted project timeframes, along with housing market weakness.

Going into 2026, Linesight is predicting Apac construction markets to see sustained growth and stability, despite persistent labour and cost challenges. Across the region, Apac construction markets are projected to chart an annual growth rate of 3% to 6% between 2026 and 2029, underpinned by robust investments and activity in renewable energy, transportation and digital infrastructure.

Linesight’s sanguine outlook is also supported by stabilising costs. “Tariff-related developments continue to influence construction markets, but their impact has been more limited than initially anticipated,” the firm says. In particular, commodity prices, with the exception of metals, broadly moderated in 2025, while diesel rates are expected to remain under 2% due to global oversupply.

In Singapore, the construction industry is expected to grow at an average annual rate of 4.2% between 2026 and 2029, which Linesight attributes to transport infrastructure investment under Singapore’s Land Transport Master Plan 2040. “Construction activity could also be boosted by additional capacity awarded to data centre operators, who are anticipating approval for an additional 300 MW of capacity,” the firm adds.

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Singapore construction industry to grow 4.2% annually from 2026 to 2029: Linesight

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