The skyline of Preah Sihanouk province’s Sihanoukville, which saw a massive construction boom prior to the Covid-19 pandemic. Supplied
Recent data obtained by The Post highlighted the rapid rise of the construction sector in Cambodia over the past two decades – albeit prior to the emergence of the Covid-19 pandemic – with the Kingdom now home to more than 2,800 buildings of five stories or more, according to the Ministry of Land Management, Urban Planning and Construction.
The data revealed that from 2000 to July 2024, the government issued permits for 66,978 construction projects nationwide, covering a total construction area of 194,310,196 square metres and an estimated total investment value of approximately $77 billion.
Among these, 2,857 were buildings with five or more stories. In Phnom Penh, there are 1,813 such buildings, in Preah Sihanouk there are 730 while in Banteay Meanchey saw 249, with 65 approved in other provinces.
Permits were granted for 60 buildings of 40 stories or more; while 152 were issued for 30-39 storey structures. Plans for 250 20-29 storey projects were approved, with 743 10-19 storey and 1,652 5-9 storey buildings permitted.
“The construction sector plays a crucial role in rebuilding and developing the national society and driving economic growth at the household and national levels. From one administration to the next, the Cambodian government has continuously strengthened the management and development of the construction sector,” said a ministry statement.
“This is a key factor in economic growth, and focuses on promoting investment in construction, building laws, setting construction standards and accelerating the issuance of construction permits for the public,” it added.
Sam Soknoeun, president of the Global Real Estate Association and chairman of the board of SAM SN Group, told The Post on November 22 that there are many factors driving the growth of high-rise construction.
These include increased demand from foreign investors (Cambodian law allows foreigners to own property starting from the first floor) as well as the changing mindset of Cambodians regarding living in high-rise buildings, coupled with population growth in cities, traffic congestion and increased personal and family income.
He added that most of the high-rise buildings in Cambodia are used for condominiums, apartments, offices, shopping malls or commercial buildings.
“Political stability, security and strong economic growth have greatly helped the construction sector in Cambodia to grow in the last two decades. If the global economic situation improves further, I believe that high-rise buildings in Cambodia will become even more prevalent,” he continued.
Soknoeun also noted that before 2019, many high-rise buildings emerged in Sihanoukville after a significant influx of foreign investments, especially from Chinese investors.
However, following the implementation of measures by the government to eliminate harmful businesses and the Covid-19 crisis, many large and high-rise construction projects in the region were delayed and remain on hold.
“The construction sector in Sihanoukville will recover in the near future, as the government has continued to implement new strategies to turn Sihanoukville into a multi-purpose investment hub,” Soknoeun insisted.
He also pointed out that the city of Poipet (on the border between Banteay Meanchey province and Thailand) is showing promising signs.
Huy Vanna, secretary-general of the Cambodian Association of Housing Developers, acknowledged that the construction sector is currently less active than in the past, with most ongoing projects being small-scale residential buildings.
“Large and high-rise projects have been quiet for nearly four years, since the onset of the Covid-19 pandemic,” he said.
“The construction sector in Cambodia needs more time to recover and regain momentum,” he added.
