Cambodia’s construction sector attracted nearly $80 billion of investment capital over 24 years from 2000 to 2024, according to the annual report from the Ministry of Land Management, Urban Planning and Construction (MLMUPC), released in late November.
MLMUPC’s report said, that from 2000 to 2024, the ministry has issued construction permits for 67,696 projects with a total floor area of 197,455,440 square metres and with an investment capital of $78.9 billion.
From 2000 to 2024, there were 2,903 high-rise buildings up to 5 storeys nationwide, 1,824 in Phnom Penh, 738 in Sihanoukville, 272 in Banteay Meanchey and 69 buildings in other provinces, including 1,680 high-rise buildings from five to nine storeys, 758 buildings from 10 to 19 storeys, 252 buildings from 20 to 29 storeys, 153 buildings from 30 to 39 storeys, and 60 buildings with 40 floors or more, it added.
The report stated that the construction sector plays an important role in the restoration and development of society and promotes the growth of the local and national economy.
“From one mandate to another, the government has launched policies to further strengthen the management and development of the construction sector, which is one of the pillars of economic growth, focussing on promoting investment in the construction sector, development of laws, construction standards and the acceleration of issuance of construction permits.
The ministry has strengthened the inspection and prevention of encroachment on state public land, unlicensed construction, and construction permits, requiring site owners to set up wastewater treatment plants before discharging into public sewers to avoid pollution and protect the environment,” it said.
Speaking to Khmer Times, Sam Soknoeun, President of the Global Real Estate Association and SAM SN Group, said yesterday that the construction and real estate sector is a pillar that promotes national economic growth.
In the last 24 years, the construction and real estate sectors have developed rapidly, he observed during the growth period real estate prices increased year on year, as well as providing people with better quality housing.
This sector has attracted local and foreign investors to invest in Cambodia’s real estate sector, whether it is housing, commercial, tourism, schools, or hospitals, he added.
“From 2000 to 2024, Cambodia has had many high-rise buildings and many projects from affordable, mid-range to high-end and with tens of thousands of dollars injected into the sector, which have greatly contributed to the growth of the national economy and development,” Soknoeun said.
However, from 2019 to 2024, the real estate sector was affected by the COVID-19 pandemic and the uncertainty of the global economy, but the sector has survived these negative impacts, he said, indicating that the sector is maturing and is resilient to downward trends.
Although some construction projects have stalled, the government and stakeholders have been actively working to help restore and solve those problems, by putting into place policies and incentives to help the sector recover and grow to the levels before the pandemic, he added.
“I see that the real estate sector is slowly recovering and will recover to the levels before the downturn because Cambodia has peace, political, and economic stability, and most importantly, Cambodia permits foreign investors to register companies 100% fully owned, creating investors’ confidence to invest in the sector,” Soknoeun said.
Noun Rithy, Chairman of the Board of KFA Group, a real estate developer, told Khmer Times that the construction sector is more mature and more robust after going through many problems such as global economic uncertainty, COVID-19 and the prolonged wars abroad, which has negatively affected the economy.
As the crisis continued to drag on the economy, real estate buying and renting declined, especially on high-end housing, and the supply of above-affordable and high-end housing exceeded market demand, but there is room to grow the market with the demand for affordable and medium-price housing, Rithy said, adding that therefore, this type of market should be considered for investment to meet customer needs.
“To boost the construction sector, the government should divide the development zones, and promote the tourism sector, because it contributes to strong economic growth.
In Sihanoukville, for example, there are unfinished construction projects, so the government should cooperate with the private sector to promote the completion of these unfinished projects to beautify the city and to address the downside impact in the sector,” Rithy said.
