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When it comes to investing in condos in Singapore, one crucial factor to consider is the government’s property cooling measures. Over the years, the Singaporean government has implemented various measures to discourage speculative buying and maintain a steady real estate market. These measures involve 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 the long-term stability of the market, creating a safer environment for investors.
As we approach 2025, Singapore’s built environment is on the cusp of major changes. The facilities management (FM) sector is facing increasing pressure to adapt to new regulations, cost constraints, and technological advancements. Three key factors will shape the future of FM and promote sustainability: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend of adaptive reuse in construction.
The mandatory energy improvement regime, set to begin in the third quarter of 2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficiency measures. This mandate applies to various types of buildings, including commercial, healthcare, institutional, civic, community, and educational, that have a gross floor area of over 5,000 square meters. Buildings will be required to reduce their energy usage intensity by 10% from pre-energy audit levels, which is a realistic goal achievable by implementing the right strategies. Asset owners are encouraged to take a longer-term view on capital expenditures for energy-efficient systems. The energy audits will provide valuable data on energy consumption patterns, identify performance gaps, and guide asset owners in devising strategies to prolong asset lifespan, reduce long-term operating costs, and contribute to a more sustainable built environment. Building owners can also take advantage of grants to cover the costs of energy efficiency upgrades.
One noteworthy example of sustainable facilities management is Temasek Polytechnic, Singapore’s first smart campus. In 2021, the campus embarked on a digitization initiative to streamline operations. This initiative offers valuable insights into the future of smart and sustainable FM. The smart campus utilizes a suite of solutions to digitize campus operations including facility booking, automated maintenance work orders, 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 data helps the campus operations team make informed decisions to keep building systems healthy and maximize returns on investments while also reducing operational carbon levels. Temasek Polytechnic’s experience serves as a model for other facilities looking to embrace digitalization, data analytics, and sustainable practices for long-term success.
Another driving force for sustainability in FM is the obligation for listed and large non-listed companies with at least $1 billion in revenue and $500 million in total assets to disclose their climate impact by 2027. This push for transparency and accountability will encourage more companies to invest in energy efficiency and sustainable practices.
The impact of rising temperatures on energy costs will also drive investment in proptech (property technology). As temperatures continue to rise, the demand for cooling in buildings will also increase, putting pressure on energy consumption. Currently, air conditioning and mechanical ventilation (ACMV) systems contribute significantly to operational costs, making up about 60% of total energy expenses in most buildings. To mitigate rising energy costs, building owners can implement energy-efficient solutions such as energy recovery systems or thermal energy storage. They can also optimize chiller plant operations based on changing weather conditions to reduce energy waste and costs.
Extreme weather risks, such as flooding and urban heat, pose a threat to the health and performance of crucial infrastructure like drainage and plumbing systems. This is where advances in web-based geospatial technology can assist facilities and asset managers in identifying flood-prone areas or spaces that are highly exposed to heat. By incorporating these tools, building owners and city planners can develop comprehensive operational plans that consider extreme weather events, anticipate equipment failures, and optimize chiller plant operations to mitigate risk. This approach is crucial, especially in light of recent flash flood incidents in Singapore that have caused significant damage to properties.
To combat rising construction costs, there is a growing trend towards adaptive reuse in the construction industry in Singapore. Surbana Jurong (SJ) estimates that mechanical and electrical costs have increased by approximately 30% compared to pre-Covid levels. This increase can be attributed to a rise in shipping costs (77%), labor costs (9%), and construction material prices, such as copper (15%), along with a shortage of M&E contractors. This trend is promoting the adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.
One best practice for sustainable construction is using proptech platforms like Podium, developed by Lendlease and Surbana Jurong. This platform connects developers, designers, and the supply chain to deliver high construction productivity and promote sustainable building practices. By consolidating data from various sources, all stakeholders can access valuable information on design, engineering plans, construction materials, and components. This data is critical when deciding whether to redevelop or reuse structural elements like wall columns, beams, and slabs. Keeping these components can save time, labor, and materials. After construction, Podium can link with other operational platforms to track building performance metrics, such as energy consumption, waste, water usage, air quality, and occupancy trends. This data can help drive operational carbon reduction goals. Building owners can also use Podium to make informed decisions about equipment procurement, replacement, and retrofitting to optimize efficiencies, maximize returns on investment, and comply with regulations and sustainable financing requirements.
Using sensors, AI-powered monitoring systems, and predictive maintenance strategies can also help mitigate cost pressures. For example, sensors can monitor vibrations in chiller equipment, detecting wear or potential failures. Similarly, thermographic testing can identify abnormal temperatures in the system, allowing for early intervention. AI-powered monitoring systems can track various components of the M&E system, providing detailed data for informed decision-making. This data can help identify options for retrofitting or replacing equipment, which can be costly. Implementing predictive maintenance and data-driven approaches to asset management can help maximize the life cycle of capital-intensive equipment like ACMVs, lifts, and air handling units, reducing downtime and improving efficiency.
As we look towards 2025, the FM sector in Singapore faces various challenges, including regulatory demands, cost pressures, and technological advancements. However, by embracing sustainability, digitalization, and data analytics, FM can drive cost savings, promote sustainability, and ensure long-term operational success. The key drivers of sustainability for FM in Singapore include the mandatory energy improvement regime, climate disclosure obligations, and the impact of rising temperatures on energy costs. By implementing smart and sustainable practices, the FM sector can thrive and contribute to a more sustainable built environment in Singapore.