Turner & Townsend’s latest Global Construction Market Intelligence (GCMI) 2025 report reveals that Singapore’s construction sector remains robust despite escalating costs and labour shortages. The report, which examines construction costs across 99 global markets, underscores Southeast Asia’s growing appeal for global investment, driven by a surge in demand for data centres and sustainable building practices.
Singapore is identified as the most expensive construction market in Southeast Asia, with costs averaging $3,104 per m². Despite this, the city-state has seen a 60% increase in construction contracts awarded in the first four months of 2025 compared to the same period in 2024. However, the market faces challenges such as a shortage of skilled labour in mechanical, electrical, and plumbing (MEP) trades, and rising waste management costs due to stricter sustainability regulations.
Brian Shuptrine, Asia Managing Director at Turner & Townsend, noted, “The region’s commitment to digital transformation and sustainability, and the strategic advantages of nearshoring, are fundamentally reshaping the construction landscape.”
The report also highlights that 90.9% of Asian markets, including Singapore, are experiencing specialist labour shortages, particularly in MEP trades. This shortage underscores the need for investment in training and workforce development to ensure project success.
Looking ahead, the report suggests that whilst costs remain a critical factor, the focus is shifting towards value, efficiency, and supply chain resilience. This shift is expected to drive further investment in innovative construction methods and local workforce development.
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