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.