# Singapore braces for higher construction costs as commodity prices, labour crunch bite

- **Source:** EdgeProp Singapore
- **Published:** 2026-06-30T08:25:34.000Z
- **Author:** Fiona Lam
- **Original:** https://www.edgeprop.sg/property-news/singapore-braces-higher-construction-costs-commodity-prices-labour-crunch-bite
- **Topics:** Regional Markets

## Featured rationale

Higher costs and longer procurement timelines could compress development margins, delay project delivery and place upward pressure on pricing for new property supply.

## AI summary

Singapore construction costs are forecast to rise 3.5–4.5% in 2026 as major-project demand coincides with commodity volatility, skilled-labour shortages and tight contractor capacity.

## Original article

Construction costs in Singapore are set to increase by 3.5–4.5% for the whole of 2026, amid higher energy prices, commodity price shocks and labour shortages that have been felt keenly across the Asia Pacific (Apac) region.

It comes as construction cost inflation in Apac has been elevated through the first half of the year, though that may moderate gradually in the second half if the Middle East conflict settles, according to global construction consultant Linesight.

Given Singapore's reliance on imported materials, region-wide conflict-related pressure on oil, freight and key commodity input costs is expected to continue to affect the city-state.

Read also: World's biggest construction startup competition to debut Asia Pacific pitch day in Singapore

It also faces intensifying pressure from persistent shortages in skilled labour, tight subcontractor capacity and strong demand for major projects.

"General contractors are raising pricing as multiple large projects move forward at pace," Linesight said in its mid-year market insights report.

Construction industry inflation for 2025 and 2026 (forecast):

Demand from major projects and life sciences

In terms of construction output, Singapore could see a 4.5% increase in real terms for 2026, with medium-term annual growth of about 4% to 2030, Linesight projected. This will likely be driven by manufacturing and major transport and energy programmes.

The Building and Construction Authority (BCA) earlier said it expects total construction demand to keep steady at around $47 billion to $53 billion in nominal terms this year, similar to 2025.

Major projects including Changi Airport Terminal 5, the expansion of Marina Bay Sands, new hospitals, and rail extensions will support this sustained demand.

Linesight highlighted that life sciences construction remains important as Singapore continues to strengthen its position as a biopharma and next-generation therapeutics hub, backed by research capability, manufacturing depth and public-private collaboration.

Read also: Cutting through 'AI magic': Built environment leaders push for real-world results and new ways of working

Construction demand is holding firm with pharmaceutical facilities expanding, and antibody drug conjugate facilities are also emerging as a new asset type in Singapore.

Linesight noted that while most Apac markets, including Malaysia, Singapore and Thailand, are on track to post higher construction outputs this year, higher prices of oil and gas, as well as various commodities such as copper and cement, are weakening the region’s outlook.

Construction output in real terms, y-o-y change:

In particular, project delivery risk is rising across Apac because of labour shortages, power constraints, limited specialist contractor capacity, and longer procurement timelines.

This risk looms even as activity levels remain high. Execution constraints, rather than demand, are increasingly shaping market conditions.

John Butler, Linesight’s managing director for Apac and the Gulf Cooperation Council, said that demand remains strong in both regions, but certainty in delivery now depends on how well firms manage labour, supply chains and power constraints.

Volatile pricing for building materials

Construction commodities remain highly sensitive to energy, freight and raw material costs, with the Middle East conflict adding renewed volatility this year.

Read also: Middle East conflict sends shockwaves through construction supply chains

Price pressures vary by commodity across Apac. For copper, greater demand alongside supply constraints and geopolitical disruption are bolstering prices.

Copper prices in Singapore increased by 21.6% y-o-y in the second quarter of 2026, though they may ease from the third quarter onwards, in Linesight’s view.

Copper prices, y-o-y change:

The firm reckoned copper prices could fall by 1–5% between 3Q2026 and 4Q2026 across the board in Apac.

“The outlook depends on the duration of the Middle East conflict, conditions along Hormuz trade routes, and the continued impact of sulphuric acid supply constraints on global copper production,” it added.

As for cement, prices are likely to stay high in Apac through 2026 amid strong underlying construction demand and elevated energy and freight costs.

In the first quarter this year, Singapore recorded the region’s biggest q-o-q jump in cement prices, at around 8%, driven by robust construction activity, major projects and supply constraints linked to import dependence.

That said, Linesight forecast cement prices in the city-state to decrease by about 1–5% between 3Q2026 and 4Q2026.

Cement price trend forecast:

Meanwhile, steel and stainless steel markets in Apac are facing higher costs in inputs, energy, freight and logistics, although weak downstream demand is limiting further upside in prices.

Concrete prices went up in most markets in the region in the first half of this year, fuelled by buoyant project demand and higher energy and transport costs.

Singapore saw concrete prices move upward in the first quarter amid a strong project pipeline and increasing material and logistics costs.

That said, cost pressures moderated in the second quarter and led to some easing. Concrete prices in Singapore thus gained a milder 2.1% y-o-y in 2Q2026.

Concrete prices, percentage change relative to 1Q2024 as the baseline:

Procuring equipment gets slower, costlier

As long equipment lead times, cost volatility and geopolitical disruption affect project viability, Linesight sees supply chains becoming an earlier strategic consideration in the construction sector.

Global manufacturing capacity is now shaping project delivery as much as on-site activity, as costlier and longer procurement timelines for equipment are adding to delivery risk.

For mission-critical and high-tech industrial projects, long lead equipment — machinery or components that take a significant amount of time to be manufactured, fabricated or delivered — accounts for around 35% to 40% of total capital expenditure.

Lead times for mechanical systems, such as chillers, computer room air handlers and cooling towers, are generally ranging from 20 to 43 weeks globally. There has been “controlled volatility” and signs of modest improvements in lead times this year, Linesight noted.

In contrast, electrical infrastructure continues to face acute pressure. Generators have “significantly extended” lead times — even exceeding 100 weeks in the Americas and Europe, the consultant added.

Costs of long lead equipment have also escalated globally, with a consistent upward trend across all major equipment categories, going by Linesight’s cost data.

This has largely been driven by strong global demand for data centre infrastructure, particularly with hyperscale expansion and as AI investments accelerate rapidly.

Linesight pointed out that the scale and pace of this demand have outstripped existing global manufacturing capacity for critical equipment.

That has led to persistent supply demand imbalances and sustained pricing pressure across both electrical and mechanical systems.

Construction programme risk is therefore shifting away from traditional site activity and towards production pipelines and supplier capacity.

“Achieving project resilience relies heavily on early supply chain engagement,” said Neil Doyle, director of procurement and supply chain management at Linesight.

“To avoid delays, delivery teams must plan their design and supply chain engagement strategies in parallel,” he added.

## Chinese translation

> Translation model: grok

### 大宗商品价格上涨与劳动力短缺夹击，新加坡建筑成本将走高

大型项目推进而产能紧张，承包商纷纷提价。亚太地区项目交付风险亦在上升。

在能源价格走高、大宗商品价格冲击以及劳动力短缺的背景下，新加坡2026年全年建筑成本预计将上涨3.5%至4.5%。这些压力在亚太（Apac）地区普遍较为明显。

据全球建筑咨询机构Linesight称，亚太地区上半年建筑成本通胀处于高位，若中东冲突缓和，下半年或将逐步放缓。

鉴于新加坡高度依赖进口建材，区域范围内与冲突相关的石油、货运及关键大宗商品投入成本压力，预计将继续影响这个城市国家。

另请阅读：全球最大建筑创业竞赛将在新加坡举办亚太路演日

新加坡还面临技术劳动力持续短缺、分包商产能紧张，以及重大项目需求强劲带来的压力。

Linesight在年中市场洞察报告中表示：“多个大型项目加速推进，总承包商正在上调报价。”

2025年与2026年建筑业通胀（预测）：

重大项目与生命科学领域需求

就建筑产值而言，Linesight预计新加坡2026年实际产值可能增长4.5%，中期至2030年年均增速约4%。增长动力料将来自制造业以及重大交通与能源项目。

建设局（BCA）早前表示，预计今年建筑总需求名义规模将维持在约470亿至530亿新元，与2025年相近。

樟宜机场第五航站楼、滨海湾金沙扩建、新建医院以及轨道交通延伸等重大项目，将支撑这一持续需求。

Linesight指出，生命科学领域建设仍很重要，因新加坡持续巩固其作为生物制药与下一代疗法枢纽的地位，依托研发能力、制造深度以及公私协作。

另请阅读：拨开“AI魔法”：建筑环境业界领袖推动落地实效与新工作方式

制药设施持续扩张，建设需求保持稳健；抗体偶联药物（ADC）设施也成为新加坡新的资产类型。

Linesight指出，尽管包括马来西亚、新加坡和泰国在内的多数亚太市场今年建筑产值有望走高，但石油天然气以及铜、水泥等大宗商品价格上涨，正在削弱该地区的前景。

建筑产值实际同比变化：

尤其是，劳动力短缺、电力约束、专业承包商产能有限以及采购周期拉长，正推高亚太地区的项目交付风险。

即便活动水平居高不下，这一风险依然存在。塑造市场格局的，越来越是执行层面的约束，而非需求本身。

Linesight亚太与海合会（GCC）董事总经理John Butler表示，两个地区需求依然强劲，但交付确定性如今取决于企业如何管理劳动力、供应链与电力约束。

建材价格波动

建筑大宗商品对能源、货运和原材料成本高度敏感，今年中东冲突再度加剧波动。

另请阅读：中东冲突冲击建筑供应链

亚太各大宗商品价格压力不一。就铜而言，需求上升叠加供应约束与地缘政治扰动，正支撑价格。

Linesight认为，2026年第二季度新加坡铜价同比上涨21.6%，但从第三季度起或将回落。

铜价同比变化：

该机构预计，2026年第三至第四季度，亚太地区铜价整体可能下跌1%至5%。

“前景取决于中东冲突持续多久、霍尔木兹贸易航线状况，以及硫酸供应受限对全球铜产量的持续影响，”报告补充道。

至于水泥，在基础建设需求强劲以及能源与货运成本高企的背景下，2026年亚太水泥价格料将维持高位。

今年第一季度，新加坡录得区域内最大的水泥价格环比涨幅，约8%，主因建设活动旺盛、重大项目推进，以及依赖进口带来的供应约束。

不过，Linesight预测，新加坡水泥价格在2026年第三至第四季度将下降约1%至5%。

水泥价格走势预测：

与此同时，亚太钢铁与不锈钢市场面临投入、能源、货运与物流成本上升，但下游需求疲软限制了价格进一步上行空间。

今年上半年，区域内多数市场混凝土价格上涨，受项目需求旺盛以及能源与运输成本上升推动。

新加坡第一季度混凝土价格因项目储备充沛及材料与物流成本上升而走高。

不过，第二季度成本压力有所缓和，价格有所回落。因此，2026年第二季度新加坡混凝土价格同比仅温和上涨2.1%。

混凝土价格相对2024年第一季度基线的百分比变化：

设备采购更慢、更贵

随着设备交付周期拉长、成本波动及地缘政治扰动影响项目可行性，Linesight认为供应链正成为建筑业更早纳入的战略考量。

全球制造产能如今与现场施工一样，决定着项目交付；设备采购更贵、周期更长，加剧了交付风险。

对关键任务型与高科技工业项目而言，长交期设备——即制造、加工或交付需较长时间的机械或部件——约占资本支出总额的35%至40%。

冷却机、机房空调（CRAH）与冷却塔等机械系统的全球交付周期通常为20至43周。Linesight指出，今年出现“可控波动”，交付周期有小幅改善迹象。

相比之下，电力基础设施压力依然尖锐。发电机交付周期“显著拉长”——在美洲与欧洲甚至超过100周，该咨询机构补充道。

根据Linesight的成本数据，长交期设备成本在全球亦持续攀升，各大设备类别均呈一致上行趋势。

主因是全球数据中心基础设施需求强劲，尤其是超大规模扩张以及人工智能投资快速加速。

Linesight指出，这一需求的规模与速度已超出关键设备现有全球制造产能。

由此导致供需失衡持续，电力与机械系统均面临持续的定价压力。

因此，建设项目的风险正从传统现场活动，转向生产管线与供应商产能。

Linesight采购与供应链管理总监Neil Doyle表示：“实现项目韧性，高度依赖尽早介入供应链。”

“为避免延误，交付团队必须同步规划设计与供应链介入策略，”他补充道。