Logo of Phnom Penh Post newspaper Phnom Penh Post - Construction investment in first half towers over $3.8B




Construction investment in first half towers over $3.8B

Content image - Phnom Penh Post
Between 2000 and last month, the ministry approved 50,968 construction projects. Hean Rangsey

Construction investment in first half towers over $3.8B

Capital investment in the construction sector climbed 13.26 per cent year-on-year to more than $3.84 billion in the first half of this year, the Ministry of Land Management, Urban Planning and Construction said in a report.

It said it received 2,522 applications for construction projects during the period, up 475 or 23.20 per cent from the 2,047 received in the first half of last year.

Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim told The Post on Tuesday that the sector saw strong growth in capital investment, which he said reflects the progress in the development of the Kingdom’s construction and real estate industry.

“This is positive indication that there are scores of people interested in investing in our country, but are the projects actually being delivered or not?” he said.

Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia, said the pandemic coupled with an online gambling ban that went into effect on January 1 considerably stifled construction activity and housing sales in the first half notwithstanding the mounting capital investment.

He said around 68 per cent of high-rise condominium projects were suspended during the period, while the remainder experienced delays.

“Evidently, construction investment indeed grew during the period, buoyed by existing investment proposals, and it continues to grow now. But the momentum of construction and sales has been trending lower,” said Vanna.

Prime Minister Hun Sen said via Facebook on June 30 that the Kingdom’s real estate sector is performing well as usual, noting that the Covid-19 crisis has slowed down home sales activity.

He said the pandemic has hit swathes of the Kingdom’s economy but local businesspeople remain as active in their professions as ever.

Although homes may not be selling as well as they did prior to the outbreak, shophouse sales have experienced regular bursts of growth, he said.

“The home-buying business is still up and running, it’s just not as strong as it used to be. But on the other hand, shophouses appear to be all the rage now,” said the Prime Minister.

Between 2000 and last month, the ministry approved 50,968 construction projects, worth $56,961,393,522, it said in its report.

During the period, 2,830 consultancy services, building design and construction companies registered. But, it said, only 1,241 still hold valid licences.

Between 2005 and last month, there where 1,945 projects at least five storeys tall, of which 114 were 30-39 storeys tall and 46 were over 40 storeys tall.

MOST VIEWED

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15