GOVERNMENT-approved construction projects soared 84 percent year-on-year through July to US$747.7 million, which officials called the biggest jump since the property market bust three years ago.
The number of approved projects for the period reached 1,279, a decline from the 1,344 projects greenlighted in the first seven months of 2010. However, construction during the period last year totalled only $405.8 million, which accounted for the increase in value for 2011.
“We’ve haven’t seen the value of construction projects increase this much since the real estate market crashed in the middle of 2008 to 2009,” said Lao Tip Seiha, director of the Construction Department at the Ministry of Land Management, Urban Planning and Construction, yesterday.
He said the increase in value was due to their size, as rice milling facilities, garment and animal-feed factories and apartments, among other construction, have accounted for a significant portion of the projects this year.
The total area for projects between January and July was 2.43 million square metres, compared to 1.28 million square metres the year before, he said.
Lao Tip Seiha noted that the sharp increase in business has made it difficult to find workers to staff the projects. Also, he said many of the projects are taking place in Kampong Speu and Kandal provinces along National Road 4.
Cheng Kheng, managing director at Cambodia Properties Limited, yesterday acknowledged the Kingdom’s property sector is improving this year.
“Developers have started to invest again because they feel confident the sector’s growing. There has been a lot of buying and selling in the city and outskirt areas,” he said.