Logo of Phnom Penh Post newspaper Phnom Penh Post - Real estate investment rallies to $7.56 billion in Q3



Real estate investment rallies to $7.56 billion in Q3

Content image - Phnom Penh Post
A small portion of Phnom Penh’s skyline. POST STAFF

Real estate investment rallies to $7.56 billion in Q3

At the end of September, investment in approved real estate projects had grown a hefty 76 percent compared to the previous corresponding year.

Lao Tip Seiha, undersecretary of the Ministry of Land Management, Urban Planning and Construction (MLMUPC) told Post Property that authorities from the ministry and relevant nationwide departments have, in the last nine months, permitted 2,009 construction projects totalling more than 10.5 million square metres, valued at $7.56 billion.

Most of the projects submitted to the ministry come from all types of investors ranging from local to international, as well as joint venture initiatives between both local and international partners.

Seiha added, “The projects submitted this year are mixed – including boreys, factories, hotels, condominiums, high-end offices, and apartments.” While there are concerned parties within the industry, said Seiha, “the situation and construction activities are still being carried out normally. There are [still more] projects waiting for approval.”

Seiha also played down oversupply market jitters that had recently engulfed the residential property market in Phnom Penh.

“I think the situation in this sector is still fine and hasn’t changed much. If the investors had been worried, they wouldn’t have submitted their projects for approval.”

Peng Serey, CEO of Angkor Real Estate, said this was a good thing. However, sometimes, they were merely figures. In reality, some companies had yet to carry out the cash drop and commit to their investment proposals.

“These investment figures are good. However, it’s not such a good thing in this sector because if there is too much construction, it will be spoilt in the future,” Serey said.

General manager of Focus Property, Po Eavkong, said these figures were positive, waxing lyrical about foreign investors’ unbroken confidence to continue investing in Cambodia.

However, he believes that the ministry should practise transparency regarding upcoming development projects.

Even if the figures are now seen as extremely positive, some projects have been delayed, Eavkong noted, adding that what can only be seen is the figure of project submissions.

“These figures only show the amount of licenses issued from the ministry. In reality, we still need some time. These figures do not reflect this year only as some projects need two to four years to finish,” Eavkong said.

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Demining rat ‘hero’ Magawa dead at 8

    A landmine-hunting rat that was awarded a gold medal for heroism for clearing ordnance from the Cambodian countryside has died, his charity said on January 11. Magawa, a giant African pouched rat originally from Tanzania, helped clear mines from about 225,000sqm of land – the equivalent of 42

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer