Credit Suisse expects Singapore construction sector demand to remain firm in 2011, likely at higher-end of Building & Construction Authority’s $21–$27 billion forecast.

“We see public sector demand driven by housing projects and civil engineering works, with the latter supported by the rescheduling of previously unawarded Downtown Line 3 contracts.”

Expects residential, institutional projects form bulk of private sector demand, backed by firm property market fundamentals, recovery in office sector demand.

Says risk private residential projects being brought forward could result in tightening of sector resources, drive upside to construction costs, “with pricing and scale economies benefiting larger contractors and material suppliers.”