An aerial view of Sihanoukville shows a number of unfinished structures on January 5. Yousos Apdoulrashim
Prime Minister Hun Manet is set to unveil an investment promotion programme aimed at addressing the issue of approximately 1,150 unfinished buildings in Preah Sihanouk province, which have been stalled since the onset of Covid-19 in 2020.
The initiative was announced by the prime minister during the January 8 inauguration of a concrete bridge in Koh Kong province, where he addressed over 10,000 workers.
“On January 25, I will initiate a new programme, a special programme to boost investment in Preah Sihanouk province to solve some unfinished construction issues,” he stated.
According to Manet, the Preah Sihanouk Provincial Administration, in collaboration with the Ministry of Economy and Finance, real estate experts, the banking sector and other stakeholders, is working to resolve these issues promptly.
He said that nearly four years of stagnation have affected the projects, but there has been some progress with about 100 buildings currently undergoing reconstruction and renovation.
Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association (CVEA), commended the announcement, viewing it as helpful in tackling the problem of stalled buildings and in aiding the real estate sector, which suffered due to the Covid-19 crisis and other global conflicts.
“It is a good mechanism that could lead to the complete elimination of stalled construction projects in Preah Sihanouk province within the next one or two years,” he stated.
Soknim added that the province’s development was not hindered by local issues but was impacted by the pandemic.
“I think the international market situation is not ideal now, but it will improve in two or three years. In my view, the economy could start to grow gradually this year or by 2025,” he said.
The government has implemented tax incentives in the real estate sector, such as reductions in stamp duty and capital and profit tax.
Despite this, industry leaders, including the association president and real estate agents, are seeking further government support.
They suggest measures like budget provisions through foreign loans or existing formulas to inject more capital into the sector, strengthening it as a pillar for future economic growth.
According to CEVA, between 2016 and 2019, Preah Sihanouk experienced a surge in foreign investments, particularly in the construction of large buildings, hotels and casinos, leading to a sharp increase in real estate prices.
However, since late 2019, various factors, including the closure of online gaming, the spread of Covid-19 and global issues like the Russia-Ukraine conflict, have led to the suspension of some construction projects.
In mid-2023, Preah Sihanouk provincial governor Kuoch Chamroeun noted that some building projects were stalled due to disputes between constructors, building owners and landowners over the supply of construction materials and non-payment for land.
