Logo of Phnom Penh Post newspaper Phnom Penh Post - 2016 investment in real estate and construction peaked at $8.5 billion



2016 investment in real estate and construction peaked at $8.5 billion

2016 investment in real estate and construction peaked at $8.5 billion

Cambodia’s investment in the real estate and construction sector in 2016 capped off at $8.53 billion, a 155.7 percent increase compared to the same period in 2015.

Lao Tip Seiha, undersecretary of state of the Ministry of Land Management, Urban Planning, and Construction (MLMUPC), stated on Wednesday that authorities from the national and provincial levels had approved 2,636 projects in 2016, the size of which amounts up to 14 million square metres. This has significantly risen from data in 2015, when 2,305 projects covering 7 million square metres of land amounted to $3.34 billion in investment.

“Most of the projects approved last year were condos, apartments, hotels, office buildings, malls, boreys, factories, and many more commercial centers,” Tip Seiha said, adding that the boost has created an enormous number of jobs for Cambodians while appealing more to foreign investors.

President of the Cambodian Valuers and Estate Agents Association, Kim Heang, however, questioned the validity of the $8 billion figure – specifically whether it was a true figure or just a registered amount at the ministry.

He explained that some investors practice a double-standard trade, quoting a land price of, for example, $10 million and a construction capital of $50 million, while exaggerating the cost of their project as $200 million.

He continued, “The investors who registered their capital investment with only 50 percent of the actual principle is already good enough. However, we’re happy to welcome more new projects into Cambodia.”

MOST VIEWED

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Hun Sen: Stay where you are, or else

    Prime Minister Hun Sen warned that the two-week lockdown of Phnom Penh and adjacent Kandal provincial town Takmao could be extended if people are not cooperative by staying home. “Now let me make this clear: stay in your home, village, and district and remain where

  • Businesses in capital told to get travel permit amid lockdown through One Window Service

    The Phnom Penh Municipal Administration has issued guidelines on how to get travel permission for priority groups during the lockdown of Phnom Penh, directing private institutions to apply through the municipality's One Window Service and limit their staff to a mere two per cent. In

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Ministry names types of business permitted amid lockdown

    The Ministry of Labour and Vocational Training singled out 11 types of business that are permitted to operate during the lockdown of Phnom Penh and Takmao town, which run through April 28. Those include (1) food-processing enterprises and slaughterhouses; (2) providers of public services such as firefighting, utility and