It is crucial to carefully consider the government’s property cooling measures before investing in condos in Singapore. These measures have been put in place by the Singaporean government to prevent speculative buying and maintain a stable real estate market. As such, they have a significant impact on condo investments. Among these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. Although these measures may affect the short-term profitability of condo investments, they also contribute to promoting long-term market stability. This makes Singapore a secure and attractive investment environment. Additionally, staying updated on new condo launches through resources like New Condo Launches can provide individuals with the latest opportunities in the market.
As we approach the year 2025, Singapore’s built environment is on the cusp of major transformation. The facilities management (FM) sector is facing immense pressure to adapt to shifting regulatory requirements, rising costs, and rapid technological advancements. There are three key factors that will shape the future of FM and contribute to its sustainability: the introduction of a mandatory energy improvement regime, the impact of rising temperatures on energy expenditure, and the growing trend of adaptive reuse in construction.
The mandatory energy improvement regime, which will be implemented in the third quarter of 2025, will require existing energy-intensive buildings to undergo energy audits and make the necessary upgrades to improve efficiency. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. These buildings are expected to reduce their energy consumption by 10% from pre-energy audit levels, which is an achievable target with the right strategies in place.
Asset owners are encouraged to take a long-term approach when investing in energy-efficient systems that require significant capital expenditure. The energy audits will provide insights into energy consumption patterns and identify where improvements can be made. This information will guide asset owners in developing a strategy to prolong the lifespan of assets, reduce operating costs in the long run, and contribute to a more sustainable built environment. Building owners can also take advantage of grants that can help cover the costs of energy efficiency upgrades.
Temasek Polytechnic is Singapore’s first smart campus, and it has set a bold ambition to digitize its campus operations in 2021. The polytechnic’s experience provides valuable insights into the future of smart and sustainable FM. The campus has implemented a suite of solutions that digitize operations, including facility booking, automation of repair and maintenance work orders, and crowd management and temperature control measures. These systems are integrated into a common data environment, which generates data that is visualized, tracked, and monitored at a control center on campus. This information helps campus operations teams make informed decisions to keep building systems operational and maximize the return on investment in these assets. It also helps to reduce operational carbon levels.
One of the key drivers for sustainability in the FM sector is the obligation to disclose climate-related information. By 2027, all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million will be required to disclose this information. This will further accelerate the adoption of energy-efficient practices and technologies.
Rising temperatures and energy costs will also drive investments in predictive technology. As temperatures continue to climb, buildings will require more cooling, leading to higher energy costs. The heating, ventilation, and air conditioning (HVAC) systems already account for a significant portion of operating costs, making up to 60% of total energy expenses in many buildings. To mitigate rising energy costs, building owners can implement energy-efficient solutions like thermal energy storage or energy recovery systems. It is also essential to optimize the operations of HVAC systems according to changing weather conditions, which will reduce energy waste and cost.
Extreme weather events, such as flooding and heat waves, pose a threat to the health and performance of critical infrastructure in cities. This includes drainage and plumbing systems, which are crucial for keeping precincts running smoothly. To mitigate these risks, building owners and city planners can leverage advances in geospatial information technology to identify flood-prone areas and extremely heat-exposed spaces. This information can help facilities and asset managers develop a comprehensive operational plan to predict and mitigate risks, minimize equipment failure and downtime, and optimize chiller plant operations.
The rising cost of construction has prompted a shift towards adaptive reuse, with an increase in reuse projects in Singapore over the past five years. According to Surbana Jurong, one of the leading engineering and urban design firms in Singapore, mechanical and electrical costs have risen by approximately 30% compared to pre-pandemic levels. This can be attributed to a 77% increase in logistic shipping costs, a 9% increase in labor costs, and a 15% increase in construction material prices, such as copper. The shortage of mechanical and electrical contractors has also contributed to the rise in construction costs, making it necessary for the industry to adopt smart design and engineering practices.
Adaptive reuse is becoming a popular response to rising costs, and proptech provides a platform for developers and contractors to gain real-time insights into key performance indicators like time, cost, quality, and safety. For example, Podium is a proptech platform developed by Lendlease and Surbana Jurong, aimed at connecting developers, designers, and the supply chain to drive sustainable building practices and deliver high construction productivity. By consolidating data from various sources, all stakeholders involved can access valuable data on design, civil and structural engineering plans, construction materials, and components. This information is crucial when making decisions about retaining or replacing structural elements in a building, which can save material, time, and labor.
Post-construction, Podium can integrate with other operational platforms to track building performance metrics like energy, waste, water, indoor air quality, and occupancy trends. This information can help drive operational carbon reduction goals. One of the primary contributors to operational costs is the utility cost of HVAC systems, which accounts for approximately 60% of total operating expenditure. Smart buildings can mitigate this cost by optimizing the life cycle of capital-intensive equipment like HVAC systems, lifts, and air handling units. This is done through a data-driven, long-term life cycle approach that prioritizes energy savings to offset energy tariffs from capital investments. The investment in smart building infrastructure also helps building owners comply with local and international regulations and sustainable financing requirements.
By leveraging sensors and AI-powered smart monitoring systems, building owners can monitor the performance of various components in a building’s M&E system. These systems provide specific details about the performance of each component, allowing asset owners to make informed decisions about replacing or retrofitting parts. This includes predictive maintenance for HVAC equipment, which can reduce downtime and improve efficiency. Sensors can be used to analyze vibrations in chiller equipment, detect abnormal temperatures or heat buildup, and identify potential equipment failures.
In conclusion, several factors will shape the future of FM in Singapore, including the mandatory energy improvement regime, climat