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

  • Body of woman killed in Bangkok returns

    The Cambodian embassy in Thailand is working to repatriate the body of a casino dealer who was shot dead in Bangkok on Monday night. Ministry of Foreign Affairs and International Cooperation spokesman Kuy Kuong told The Post on Wednesday that officials are preparing paperwork to

  • Chikungunya hits 15 provinces, says gov’t

    Ministry of Health spokeswoman Or Vandine said on Thursday that the chikungunya outbreak in the Kingdom has spread to 15 provinces. Some 1,700 people are now suspected to have the disease. Vandine urged people to prevent its further spread by eliminating shelters for the Aedes aegypti mosquitoes

  • Gov’t exempts visa A and B holders from Covid fees

    Airline passengers who are diplomats and officials of international organisations holding Type A and B visas for travel to Cambodia are exempted from paying Covid-19 testing fees, said the Ministry of Health in its latest adjustment of rules on Wednesday. Health Minister Mam Bun Heng

  • Bill covering dress code draws ire

    Ministry of Interior secretary of state Ouk Kim Lek responded on Tuesday to criticism concerning a draft law that would ban women from wearing overly revealing clothing, saying that input from all parties will be considered as the law moves through the promulgation process. Several

  • Police arrest 29 Chinese for PP kidnapping

    Phnom Penh Military Police arrested 29 Chinese nationals on kidnapping charges on Wednesday. The suspects are said to have abducted three other Chinese nationals from a hotel in Chaktomuk commune, Daun Penh district. The operation took place on Wednesday and was led by two deputy commanders –

  • What’s the deal with Cambodia and China’s FTA?

    Cambodia’s Free Trade Agreement (FTA) with China kicks off a series of FTAs in future but for now, critics wonder what else the parties could bring to the table apart from what it already has to date By the end of this year, Cambodia