Construction firms face order cancellations as demand drops

Developer will be forced to cut prices.

Beleaguered oil and gas players are not the only companies which face the risk of contract cancellations this year. According to a report by Deutsche Bank, builders are also under threat of project deferrals on back of sluggish demand in the construction sector.

“The construction industry will likely see cancellation of orders this year, resulting in a worsening of the supply-demand imbalance,” said Taimur Baig of Deutsche Bank.

“The residential real estate has experienced some price correction, but nowhere close to being sufficient to clear the market,” he added.

And while many developers have stubbornly refrained from cutting prices in hopes of riding out the cycle, Baig said that some builders may be forced to cut prices soon as regulatory easing seems unlikely in the near-term.

“But as relief (regulatory or demand-related) remains elusive, the market may have to capitulate at some point. Even the well-performing service sector continues to face margin pressure from policy-induced labor markets,” he noted.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia