Construction investment during the first half of the year reached $4.94 billion, a 27.44 percent year-on-year increase, according to a senior official at the Ministry of Land Management.
“The ministry gave construction permits for 1,523 projects, equal to 7,284,675 square metres in the first six months of 2017, compared to 1,183 projects with a total construction area of 10,512,261 square metres during the same period in 2016,” said Lao Tep Seyha, undersecretary of state at the ministry. “Projects were approved in 14 satellite city locations and 43 high-rise buildings with five floors or more,” he added.
Since 2000, the government had issued construction permits to 37,637 projects, equivalent to 93.56 million square metres, bringing in approximately $32.62 billion in investment capital, according to Seyha “While construction investment in the first six months of 2016 generated $3.87 billion, the prospects for 2017 have been better with $4.94 billion invested in the first six months of the year,” he said.
The ministry meanwhile registered 1,006 licenced design and construction companies in the first half of the year, including 40 planning design companies and 966 construction companies. Among them were 408 foreign companies. Property experts remained optimistic about the industry’s outlook because there will likely be more capital inflow throughout the rest of 2017.
“There are many projects coming up fast on the outskirts of the city, but they are smaller than in previous years,” Century 21 Mekong’s CEO Chrek Soknim said. “It is not a worrying sign for the property sector because projects keep popping up in the market. There already are many high-rise buildings in Phnom Penh, so this could be a sign of an investment boost for projects on the outskirts of the city,” he added. “Demand is not a cause for concern now. In the future, supply will increase. It will just take time to fill the gap.”
CL Realty CEO Sear Chailin also expressed optimism, saying political and economic stability will help all sectors flourish and draw in more investors. “The property situation in the country is still favourable and the country is still an investment destination. Cambodia has strong policies for investors to come here compared with other countries in Asean,” he said.