Logo of Phnom Penh Post newspaper Phnom Penh Post - Construction approvals rise

Construction approvals rise

Construction approvals rise

THE Kingdom’s construction industry enjoyed an 87 per cent jump in government-approved investment during May, according to the Ministry of Land Management, Urban Planning and Construction’s latest figures.

Officials green-lighted 868 projects worth an estimated US$505 million in the first five months of 2011, a rise of 86.7 per cent. This contrasted with the 889 projects totalling $270 million in the same period of 2010, according to Ministry statistics released last week.

But although this year has brought fewer total investments, the ministry said the overall number of larger projects had increased.

Construction projects of more than 3,000 square met-res had risen by 153 per cent, Construction Department director Lao Tip Seiha said.

They included condominiums, garment factories, warehouses, oil and gas stations and markets, among other buildings, he said.

“Even though we got fewer construction projects than last year, they are still large projects with big value,” Lao Tip Seiha said.

He also noted that the growth in investment had outpaced the hiring of new workers to service some of the projects.

At the same time, insiders have pointed to the rise in overall activity in the real estate sector.

“There are a lot of transact-ions happening now, as investors look to buy and sell large properties in Phnom Penh and on the outskirts of the city,” Cambodia Properties Limited managing director Cheng Kheng said.

Total construction investment for 2010 reached $840 million as a result of 2,149 projects in the Kingdom. Investment during the previous year had been significantly larger, as nearly $2 billion had been spread across 2,230 projects, according to Construction Ministry data.

The National Bank of Cambodia's 2010 annual supervision report shows lending to construction increased by 2.9 per cent in 2010 over the previous year, although overall lending increased by 25 per cent during that period.

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the