Logo of Phnom Penh Post newspaper Phnom Penh Post - Home building sector booming

Home building sector booming

Content image - Phnom Penh Post
A 3D artist’s impression of the image of Borey Vimean Phnom Penh affordable housing project. Photo supplied

Home building sector booming

Home building is booming in the Kingdom, with the affordable housing sector showing great momentum in suburban areas, as recent data indicates.

The Ministry of Land Management, Urban Planning and Construction said during the first six months of the year, provincial and municipal authorities provided 1,643 construction permits for 5.35 million sqm of housing valued at some $2.15 billion.

“The increase is due to Cambodia’s political stability, strong economic growth, the number of new families and the increased inflow of investments from abroad,” said Lao Tip Seiha, the ministry’s under-secretary of state.

Experts also say that an uptick in average income and the increasing number of new households has shielded the Kingdom’s housing and real estate markets from the instability that struck some neighbouring countries.

While this may be good news for the emerging middle class, it is not without headaches. Some urban areas, according to real estate experts, are approaching over-development.

Housing Development Association of Cambodia president Ly Hour spoke to The Post on Wednesday at the ground-breaking ceremony of the Borey Vimean Phnom Penh affordable housing project along National Road 6, northeast of the capital.

Hour said the Kingdom’s real estate and housing markets are now growing too fast in the capital, and creating the need for suburban developments like Borey Vimean, of which he is the president. Ly said his company plans to continue building homes in the area.

‘Exceed expectations’

Chhay Sina, the sales and marketing manager of Borey Vimean, said the 30ha project will take three to five years to build. It will eventually have about 3,000 homes, ranging in price from $47,000 to more than $200,000.

“I think this new project will attract more customers and sales will exceed expectations. We have previous experience of selling others projects along the road,” she said.

Chhay said the new development is the ninth Borey Vimean project near Phnom Penh. It will include shophouses, apartments, villas, office buildings, entertainment options and gymnasiums.

Lucky Realty CEO Dith Channa said in the last few years, the real estate and construction sectors have evolved significantly along National Road 6, especially from Chroy Changva Bridge to the Prek Tamak Bridge.

“There are currently a lot of housing projects emerging along this road,” he said.

The price of land along National Road 6 is between $300 and $350 per square metre, an increase from between $250 and $300 last year, said Channa.

Rising prices are a concern, even as the housing market expands. Cambodian Association of Real Estate Agents president Kim Heang previously said that home prices in Cambodia fall into three categories – less than $40,000, between $48,800 and $80,000, and over $80,000.

The ministry said in 2015 that about 800,000 new homes have to be built across the Kingdom by 2030. That’s good news for developers like Hour.

“I am optimistic that the housing market in Cambodia will continue to grow for a long time, especially for those in the middle-class bracket,” he said.

MOST VIEWED

  • Gov’t not using EU aid for poor

    Prime Minister Hun Sen on Tuesday refuted as “baseless”, claims that the government had used financial aid from the EU to implement the programme to identify and support poor and vulnerable people during the Covid-19 pandemic. The prime minister was responding to Roth Sothy, a

  • Thai fence said to prevent illegal crossing

    Battambang and Banteay Meanchey provincial police say Thailand is not invading Cambodia after a series of social media posts about fences being built on the border raised alarms. Banteay Meanchey police chief Ath Khem said on Tuesday the information on social media on Sunday and

  • PM to vet NY holiday dates

    The Ministry of Economy and Finance submitted a letter to Prime Minister Hun Sen asking him to formally set a five-day national holiday from August 17-21 to make up for the Khmer New Year holiday in April that was postponed. Finance minister Aun Pornmoniroth sent

  • Cambodia rejects UN rights claim

    Cambodia's Permanent Mission to the UN Office in Geneva on Friday hit back at David Kaye, the UN special rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression after he raised concerns over the repression of free speech and

  • Snaring may spawn diseases

    The World Wildlife Fund (WWF) has warned that snaring of animals has become a crisis that poses a serious risk to wildlife in Southeast Asia and could spawn the transmission of zoonotic diseases to humans. Its July 9 report entitled Silence of the Snares: Southeast Asia’

  • Ex-party leader, gov’t critic named as secretary of state

    A former political party leader known for being critical of the government has been appointed secretary of state at the Ministry of Rural Development, a royal decree dated July 9 said. Sourn Serey Ratha, the former president of the Khmer Power Party (KPP), told The Post

  • Residence cards set for over 80,000 immigrants

    The Ministry of Interior plans to grant residence cards to more than 80,000 immigrants to better keep track of them. The ministry announced the plan on July 10, following the results of an immigration census. “An inter-ministerial committee and many operational working groups have been set up

  • Kingdom produces PPE gear

    Medical supplies from Cambodia have been donated to member countries of the Asian Development Bank (ADB) to assist in the fight against Covid-19, said an ADB report published on July 9. The report stated that the supplies were donated as a response to global efforts to

  • Kingdom, US vow stronger ties

    At an academic forum on Saturday to celebrate 70 years of Cambodia-US diplomatic ties, Cambodian researchers and officials expressed hope of encouraging US investments and for that country to deepen and improve its bilateral relations. Held at the Royal Academy of Cambodia, it reviewed the past 70

  • ‘Single Portal’ integrated registration system welcomes nearly 50 firms

    Forty-seven companies have successfully registered via a newly-launched information technology e-business registration platform as of the end of the second week of this month, Ministry of Economy and Finance secretary of state Phan Phalla said. Six ministries and state-run institutions have been integrated into a