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Real estate investment rallies to $7.56 billion in Q3

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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.

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