CYCLICAL BEHAVIOUR OF THE CONSTRUCTION INDUSTRY IN SINGAPORE, 1960-1987

Abstract

Real estate becomes increasingly important in a fast modernising country like Singapore. In recent years, there has been a building spree in all types of properties. The construction of new homes, offices, shops, warehouses, factories and hotels had taken place at a breath-taking rate. The upshot of the surge in construction activities has resulted in an over-supply situation. However, the sector seems to be picking up currently in 1988. This Academic Exercise attempts to identify the cycles in total construction activity for the period 1960 - 1987. The four cycles are identified as follows, measured from trough to trough : 1950 - 66, 1966 - 74, 1974 - 81 and 1981 - 88 The boom in each cycle was caused by different types of construction activities. For instance, the boom in the 1960-66 period was probably due to the IO-year housing programme implemented by the Housing and Development Board. While the boom in the 1966-74 period was most likely due to the world boom and the stepped up activity in all types of construction. As for 1974-81, the intensive activities of the non- residential construction such as offices, shopping complexes and hotels could have accounted for the boom during this period. Lastly, intensified building of condominiums in 1982 and the massive fifth 5-year Building Programme implemented by the Housing and Development Board for 1981-1985 contributed to the construction boom in the 1981-88 period.