Investment in Cambodia’s real estate and construction industry now stands at $4 billion, according to data from the Ministry of Land Management, Urban Planning, and Construction (MLMUPC).
A recent report by the MLMUPC revealed the government approved 1,020 projects, spanning 5.6 million square metres, in the first four months of 2017.
MLMUPC spokesman Seng Lot said the $4 billion capital estimate in the construction and real estate sector was a testament to the faith investors had in Cambodia’s economy and political stability.
He continued, “The investment capital at the start of this year accumulated with the investment of the commercial centre building Thai Boon Roong which is valued at more than $2 billion.”
Cambodian Valuers and Estate Agents Association (CVEA) president Kim Heang questioned the validity of MLMUPC’s figure, wondering whether or not it was an accurate estimation of capital flowing into the country.
“For example, some developers buy land for $16 million and spend $30 million on construction but then declare their projects are worth $85 million,” he said.
The purported $4 billion sum may sound substantial but it pales in comparison to some of last year’s figures. At the end of 2016, the MLMUPC said investment in the Kingdom’s real estate and construction sector tipped $8.53 billion following the approval of 2,636 projects.
Thai Boon Roong’s Twin Trade Center is a 133-storey twin skyscraper project set to be developed in Phnom Penh. To stand at 550 metres, the development is being touted as having the ability to be Southeast Asia’s tallest building if it comes to fruition.