Logo of Phnom Penh Post newspaper Phnom Penh Post - Construction investment in first half towers over $3.8B



Construction investment in first half towers over $3.8B

Content image - Phnom Penh Post
Between 2000 and last month, the ministry approved 50,968 construction projects. Hean Rangsey

Construction investment in first half towers over $3.8B

Capital investment in the construction sector climbed 13.26 per cent year-on-year to more than $3.84 billion in the first half of this year, the Ministry of Land Management, Urban Planning and Construction said in a report.

It said it received 2,522 applications for construction projects during the period, up 475 or 23.20 per cent from the 2,047 received in the first half of last year.

Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim told The Post on Tuesday that the sector saw strong growth in capital investment, which he said reflects the progress in the development of the Kingdom’s construction and real estate industry.

“This is positive indication that there are scores of people interested in investing in our country, but are the projects actually being delivered or not?” he said.

Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia, said the pandemic coupled with an online gambling ban that went into effect on January 1 considerably stifled construction activity and housing sales in the first half notwithstanding the mounting capital investment.

He said around 68 per cent of high-rise condominium projects were suspended during the period, while the remainder experienced delays.

“Evidently, construction investment indeed grew during the period, buoyed by existing investment proposals, and it continues to grow now. But the momentum of construction and sales has been trending lower,” said Vanna.

Prime Minister Hun Sen said via Facebook on June 30 that the Kingdom’s real estate sector is performing well as usual, noting that the Covid-19 crisis has slowed down home sales activity.

He said the pandemic has hit swathes of the Kingdom’s economy but local businesspeople remain as active in their professions as ever.

Although homes may not be selling as well as they did prior to the outbreak, shophouse sales have experienced regular bursts of growth, he said.

“The home-buying business is still up and running, it’s just not as strong as it used to be. But on the other hand, shophouses appear to be all the rage now,” said the Prime Minister.

Between 2000 and last month, the ministry approved 50,968 construction projects, worth $56,961,393,522, it said in its report.

During the period, 2,830 consultancy services, building design and construction companies registered. But, it said, only 1,241 still hold valid licences.

Between 2005 and last month, there where 1,945 projects at least five storeys tall, of which 114 were 30-39 storeys tall and 46 were over 40 storeys tall.

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • US embassy guard gets Covid despite two doses of Pfizer jab

    The Covid-19 tracking commission on June 4 said a security guard at the US embassy in Phnom Penh had contracted the novel coronavirus, despite having received a second dose of the Pfizer-BioNTech shot two weeks ago. Embassy spokesperson Chad Roedemeier confirmed the SARS-CoV-2 infection to The

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of