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Construction stays strong

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High-rise construction is on the rise in Preah Sihanouk province. Heng Chivoan

Construction stays strong

Cambodia’s construction sector remained strong during the first four months of this year following a nearly 20 per cent drop last year, according to Ministry of Land Management, Urban Planning and Construction figures.

According to the data, in the first four months of this year the Kingdom’s construction investment capital amounted to $2.742 billion, an increase of 67.37 per cent over the same period last year.

Ministry of Land Management, Urban Planning and Construction secretary of state Lao Tip Seiha told The Post on Thursday that most of the construction projects in the Kingdom are office buildings and shared accommodation buildings.

He added that the stability of macroeconomic growth and the confidence of both local and foreign investors has brought a lot of applications to the ministry from investors.

“The investment capital in the construction sector will continue to see solid growth for a long time,” Tip Seiha said.

He continued that Cambodia is attractive in many areas for investors, and has drawn high demand for office buildings, residences, commercial centres and other entertainment venues.

The construction sector remains among the Kingdom’s major economic growth engines and a vital part of the national economy.

Cambodia Constructors Association general manager Chiv Sivpheng said the construction of many large buildings in Cambodia in recent years is due to the Kingdom’s political stability and strong economic growth.

“The current high growth of investment capital now [in the construction sector] is mostly due to large projects such as commercial centres, offices buildings, condominiums and hotels,” he said.

Cambodian Valuers and Estate Agents Association president Chrek Soknim applauded the growth, saying that this was largely driven by projects in Preah Sihanouk province and Phnom Penh, where many high-rises have emerged.

This is a positive sign for the real estate and construction sectors in Cambodia, he said, also noting that the number of domestic investors in the construction sector is currently rising.

“Looking back to three or four years ago, investment in the large construction sector was only from foreign investors,” he said.

Most of the construction projects in the Kingdom remain driven by Chinese investment.

However, A World Bank Cambodia economic growth forecast report said the Kingdom’s rapidly growing construction sector will see a drop in the next few years.

According to the ministry’s latest report, construction investment capital in Cambodia last year was estimated at $5.228 billion, down 18.66 per cent compared to the same period in 2017 at $6.428 billion.

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