Singapore construction costs to rise by 5-6% in FY 2026: JLL

It expects corporate interior fit-out costs to rise by 3-4% between June 2024 and December 2025.

Cost escalation for construction projects in Singapore is projected to continue rising over the next few years, with an expected increase of 5-6% in FY 2025 and 5-7% in FY 2026, JLL said.

In its report, JLL noted several major construction projects and other large-scale public infrastructure developments are set to break ground during this period, driving demand and exerting pressure on construction materials, equipment, and labour costs.

Despite the normalization of supply chains post-pandemic, skilled labour capacity constraints remain a significant challenge, which may lead to project delays and rising labour expenses.

Meanwhile, the sustained growth momentum in the sector underscores the importance of strategic planning and cost management to ensure project viability in a competitive market.

On the other hand, JLL projects corporate interior fit-out costs to rise by 3-4% between June 2024 and December 2025, whilst the costs associated with sustainable fit-out projects are expected to increase by 10-20% over the same period.