Logo of Phnom Penh Post newspaper Phnom Penh Post - Construction ministry signs off on 14% more projects in Jul-Sep

Construction ministry signs off on 14% more projects in Jul-Sep

Content image - Phnom Penh Post
Industry insiders report that, when compared to a year earlier, there were no significant changes in the low numbers of construction projects that broke ground in the July-September quarter. Hong Menea

Construction ministry signs off on 14% more projects in Jul-Sep

The construction ministry has reported that it approved 1,175 projects in the third quarter of 2022, up 14.30 per cent year-on-year from 1,028, most of which were residential developments.

This increase was mainly buoyed by villas and other residential developments, industrial facilities and privately-financed public works, while projects related to the commercial and tourism sectors lagged behind, the Ministry of Land Management, Urban Planning and Construction said.

The ministry forecast that the Cambodian construction sector would grow three per cent this year, “supported by credit growth”.

Housing Development Association of Cambodia (HDAC) secretary-general Huy Vanna told The Post on December 5 that, when compared to a year earlier, there were no significant changes in the low numbers of construction projects that broke ground in the July-September quarter, especially when it comes to large foreign-owned projects.

Vanna attributed the current calm in the construction sector to a slowdown in global economic growth, geopolitical disputes between major powers and particularly the sharp decline in number of Chinese investors largely as a result of Beijing’s zero Covid policy, which he said creates obstacles for travel abroad.

He opined that a decent portion of the 1,175 projects given the ministry’s green light during the third quarter should have a relatively distant future date planned for their groundbreaking.

“On the ground, barely any new projects began construction in the third quarter – work merely progressed on existing developments,” Vanna said. He declined to offer an outlook for the sector’s performance in the fourth quarter.

Vanna explained that the construction sector should take longer to rebound than other sectors, notably due to the sizeable share of large Chinese-owned projects in Cambodia, but that recovery could be accelerated by a marked influx of Chinese visitors and investors.

Global Real Estate Association president Sam Soknoeun remarked that real estate transactions and rentals have been very quiet in the second half of 2022, comparable to 2020-2021 despite the easing of Covid-19-related travel restrictions.

“As I see it, the real estate market has not improved in the third and fourth quarters. The sluggishness of the market will linger on,” he predicted.

Soknoeun blamed the declines in construction activity and home transactions seen in recent months to a supply glut as consumers continue to save money.

The construction ministry reported that it approved 4,303 projects nationwide in 2021, representing a floor area of 12.998 million square metres, and registered capital of $5.334 billion, down 31.21 per cent from $7.75 billion in 2020.

MOST VIEWED

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Ministry taking steps over Thai ‘replica’ of Angkor Wat

    The Ministry of Culture and Fine Arts has dispatched experts to inspect the ongoing construction of a temple in Wat Phu Man Fah, located in Thailand’s Buriram province. This temple appears to be a replica of Cambodia’s renowned Angkor Wat. The ministry said

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • PM to open new Siem Reap int’l airport December 1

    Prime Minister Hun Manet and Chinese leaders would jointly participate in the official opening of the new Chinese-invested Siem Reap-Angkor International Airport on December 1. The airport symbolises a new page in the history of Cambodian aviation, which will be able to welcome long-distance flights to

  • Minimum wage set at $204, after Sep 28 vote

    The minimum wage for factory workers in the garment, footwear and travel goods industries for 2024 has been decided at $204 per month, with the government contributing $2. Following several negotiation sessions, the tripartite talks reached an agreement during a September 28 vote, with 46 of 51 votes supporting the $202 figure.

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former