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Construction ministry okays over 19K projects since 2018

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‘High-rise buildings’ – a designation for those at least five storeys tall – in Phnom Penh in August. Hong Menea

Construction ministry okays over 19K projects since 2018

The construction ministry reportedly approved 19,322 projects nationwide in the 54 months from January 2018 to June 2022, representing total investment commitment of $31.484 billion, with China remaining the top source market.

In the first six months of 2022, just 2,000 projects worth a total of $1.206 billion got the green light, falling short of the average rates recorded during the 1,642-day period, according to a report by the Ministry of Land Management, Urban Planning and Construction sent to The Post on August 24.

Domestic and foreign construction sector investment has remained robust and a major driver of economic growth, the ministry commented.

Speaking at an August 24 press conference on the ministry’s achievements since 2018, ministry secretary of state Ly Rasmey commented that foreign entities have been ramping up investment in the Cambodian real estate and construction landscape, noting that South Korea, Japan and Thailand where the next largest investment sources after China.

“The construction sector is an important contributing factor to economic development, fulfilling fundamental goals, generating a lot of jobs, and greatly increasing incomes across society, and is an active participant in national economic growth – this is especially so for direct investment into the sector and related activities,” he said.

Cambodian Valuers and Estate Agents Association (CVEA) president Chrek Soknim agreed, telling The Post that foreign investment poured into Cambodia via the construction sector is bringing the Kingdom’s economic potential to “another level”, although the sector still suffers from Covid-related issues.

Investors from the top source markets mostly prefer condominium, apartment and office space developments, he said, pointing out that European players also have a considerable presence in the construction sector.

Between 2000 and 2021, the construction ministry issued a total of 57,590 construction permits nationwide with total investment commitment of $66.205 billion, 2,472 of which were at least five storeys tall, and 482 of which were flat developments or residential gated communities known locally as borey.

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