Construction investment up 36% last year

Construction in Phnom Penh’s Tonle Bassac commune. Construction investment was up 31 per cent last year.
Construction in Phnom Penh’s Tonle Bassac commune. Construction investment was up 31 per cent last year. PHOTO SUPPLIED

Construction investment up 36% last year

Growth in the construction sector remained stable despite political unrest in the second half of 2013, while investment in the construction sector grew from 2012.

Lao Tip Seiha, deputy general director of the Construction Department of the Ministry of Land Management, Urban Planning & Construction, said that Cambodia’s increasingly strong economy contributed to the growth of the construction sector. He added that investment capital in the sector increased 31 per cent in 2013 compared to 2012.

The ministry approved 1,641 projects covering a total area of 7.5 million square metres, and with a total value of $2.8 billion in 2013, an increase of 31 per cent year-on-year.

In 2012, 1,694 projects were approved, with a total area of 6.5 million square metres and total investment of $2.1 billion, according to ministry data.

“People’s living standards are improving, and housing demand is strong, as an increasing number of investors, along with the tourism industry, contribute to growth of the construction sector,” Lao said.

Approvals for construction projects included residential and commercial buildings, condominiums, apartments, boreys, industrial sites, warehouses, educational buildings, hotels, guesthouses, petrol stations and sport field projects.

The majority of foreign investors in Cambodia are South Korean, Chinese, British, Japanese or Thai, according to ministry data.

In 2012, investment growth in the construction sector peaked at 72 per cent, compared to 2011. In other words, growth slowed last year in comparison with 2012.

“In terms of growth percentages in 2013, construction-sector investment increased, but declined somewhat in comparison with 2012,” Lao said. “Nevertheless,” he added, “in 2013, the construction sector has made good progress, and every construction site is very active.”

Major projects that are due to get under way this year include Booyoung Town and Hongkong Land’s Landmark. Other major projects under construction on Koh Pich including Borey 999, Borey Vimean Phnom Penh, Borey Peng Hout, and Borey New World.

Lao said he expected continued growth in investment in 2014, because a large number of both local and foreign investors had already applied for building permits for construction projects from the ministry in the first month of this year.


  • Angkor Wat named as the top landmark for the second year

    Travel website TripAdvisor has named Cambodia’s ancient wonder Angkor Wat as the top landmark in the world for the second year running in their Travelers’ Choice Award 2018, an achievement Cambodian tourism operators expect will attract more tourists to the Kingdom. The website uses traveller

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Hun Sen detractors ‘will die’

    Prime Minister Hun Sen on Wednesday said those who curse or insult him would eventually die without a plot of land to bury their bodies after being killed by lightning, suffering the same fate as those who recently died in Thmar Baing district in Koh

  • NOCC to contest petanque, tennis axe

    The National Olympic Committee of Cambodia will lobby hard over the next few weeks for the inclusion of the Kingdom’s most productive medal-earning sport, petanque, along with vovinam and tennis after the disciplines were left out of the initial list of 30 preferred sports for