THE value of Phnom Penh housing investments approved by the government from January to October has risen more than 10 percent, compared to the same period of last year.

According to figures released by the Ministry of Land Management, Urban Planning and Construction yesterday, 250 construction projects – consisting of 2,710 new villas and flats - worth an estimated US$197 million were approved from January to October this year.

This compares with 249 construction projects, worth $179 million, approved in the first nine months of 2009 – an increased in value of 10.1 percent.

Lao Tip Seiha, director of the department of construction at the Ministry of Land Management, Urban Planning and Construction, said yesterday that the residential development market in Phnom Penh was in recovery.

“We approved a lot of construction projects from local and international investors such as factories, entertainment centres, hotels, apartments, commercial and residential buildings,” he said. “It is a good sign, even thought the world economic crisis is still affecting the construction sector. We strongly believe it will see a step-by-step recovery this year.”

Lao Tip Seiha added that current construction is yet to fulfill Phnom Penh’s ever increasing demand for housing.

Around 10,000 new families come to the city each year, he said, and Phnom Penh needs to promote housing investment, especially to provide for the poor.

“According to the housing development policy for 2010 to 2030, we must build about 1.2 million homes nationwide,” he said.

According to a report released by the National Valuers Association of Cambodia last week, land prices for commercial and residential property decreased slightly during the third quarter of this year.