Building Costs Per Square Metre in Singapore

Building Costs Per Square Metre in Singapore

Newly-built, thoughtfully-designed bungalow at Linden Drive for $23.8 mil (2)

Newly-built, architecturally styled bungalow at Linden Drive, Dunearn Road, Holland Village, Sixth Avenue MRT Station, Singapore >>3-Storey Luxury House with 4 Bedrooms and Ensuite, GFA 10,000 sqft, 9,861 sqft Plot, Completed in 2019, for Large Family of Six, Designer Kitchen, Spacious Dining Area, Built-in Trash Chute, Outdoor Dining, Living Room with 10m High Ceiling and Glass Facade, Green Garden and Landscaping, Swimming Pool, Koi Pond, Office/Guest Room with Bath Ensuite, Lounge, Balconies, Soundproofed Basement Theatre with 12 Seats, Relaxation Room, 5-car Garage, 10-car Parking Space, Roof Solar Panels. All set in a prime location for a total price of $23.8 million or $2,414 per square foot.

The Building Price Index measures changes in the cost of construction materials and labour over a given period of time. Construction costs have increased by 10% in Singapore since 2021. Singapore is the 4th most expensive city to build among the 20 Asian countries surveyed by Arcadis consulting firm. Hong Kong takes the top position, followed by Macau and Tokyo. The RLB Report released in December 2021 shows us that the Tender Price Index (TPI) in Singapore increased by 8.2% from the last quarter of 2020 to the first quarter of 2021. It is forecasted to increase by a percentage range of between 3% and 8%. The total construction output in the 3rd quarter of 2020 was S$14 billion, and it increased to S$19.1 billion in the 3rd quarter of 2021. The volume of demand in the construction sector is expected to increase to a value ranging from S$25 billion to S$32 billion. On the overall, tender prices have been rising since 2020 and in December 2021, intervention was made to stabilize the residential property market.

The RLB Report (6 January 2022) shows a chart depicting the RLB Building Tender Price Index (TPI)  as well as the BCA Tender Price Index over the period 2011 to 2021. The BCA index is produced by the Building and Construction Authority of Singapore, a government department. The two curves are fairly similar in shape, depicting the same trends over 10 years although the RLB index is higher than the BCA index.

The RLB index rose from 103.1 in 2011 to 112 in 2014. It then declined to 101.5 in 2017, and rose slightly to 103.3 in 2018, remaining stable until 2019. The TPI rose sharply to 119.6 in 2021. The BCA index followed a fairly similar trend but at deviations below the RLB curve, remaining stable from 2011 to 2012 at 99.7 to 99.8. It rose to 106.8 in 2014, and then declined to 96.7 in 2017. The BCA index rose to 102.8 in 2020, and then climbed steeply to 115.4 in 2021.

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