Logo of Phnom Penh Post newspaper Phnom Penh Post - Number of building projects up in 1H

Number of building projects up in 1H

Construction in Chamkarmon district.
Construction in Chamkarmon district. Heng Chivoan

Number of building projects up in 1H

The number of construction projects approved in Cambodia during the first half of the year increased 28 percent compared with the same period last year, amounting to a total value of around $4.9 billion, according to the latest figures from the Ministry of Land Management, Urban Planning and Construction.

The government approved 1,523 projects nationwide between January and the end of June, compared with 1,183 projects for the first half of last year, the ministry announced on its website. The total value of the projects was billed at $4.94 billion compared with $3.87 billion during the same period one year earlier.

Kim Heang, president of Cambodian Valuers and Estate Agents Association, said that while these figures at face value represented the positive movement for the sector, he doubted the report’s accuracy in calculating real capital inflows into the construction sector.

“The figures look good, but I still question if that is real money flowing into the sector or if it is just a number to keep on record,” he said yesterday, adding that some developers inflate the value of their projects far above actual construction costs and land prices.

He noted, for instance, that there are projects that claim to be worth $60 million when in fact the developer only has a $10 million plot of land that needs $20 million to develop.

“If this is the case, the money is not being injected into the sector yet,” he said. “They just own the land and have yet to develop.”

Heang added, however, that he believed that real construction activity is steadily increasing, bringing with it more demand for construction materials and supplies.

Koam Bunna, managing director of K Supply, a distributor of door locks and accessories, said that the increase of condominium and office space projects has pushed up sales by 40 percent for the first half of this year. He added that the government figure was a positive sign for sales for the rest of 2017.

“I have a positive view of the construction sector and I believe the demand for construction materials will remain strong,” he said.

Land Management Ministry officials declined to comment on the ministry’s figures yesterday.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided