Investment rising quickly

07 Feb 2017 2054 | Cambodia Travel News

Investment in construction in Cambodia last year was about $8.5 billion, according to an official report released yesterday by the Ministry of Land Management, Urban Planning and Construction (MLMUPC).

Huy Nara, the director-general of the construction department at the MLMUPC, said investment capital in this sector had reached about $8.5 billion, which covers a construction area of 13 million square meters. This is an increase of 155.5 percent if compared with 2015, he said.

In 2016, foreign investment amounted to 791 projects up to five floors high and 134 borey projects, the equivalent to more than 13 million square meters and a total investment of $8.5 billion from 18 countries, according to Mr. Nara.

Most of the construction being done was large commercial buildings, office blocks, shopping malls, condominiums, apartments, factories and enterprises, he added.

“The growth in the construction sector is due to Cambodia’s political stability, economic growth and the flow of foreign investment into the country,” Mr. Nara said.

“The growth is also in line with the economic growth, dependent on the government’s right policy on the construction sector and the government’s policy to encourage developers to build high-rise buildings.”

Cambodia enacted the strata title ownership law in 2011, which is basically important to investors in high-rise buildings because the law allows foreigners to occupy the building from the first floor up.

Chrek Soknim, the CEO of Century 21 Mekong, is optimistic about the increase in construction investment capital and said it was a good sign for the construction sector to have more investment in high-rise buildings.

“As many high-rise buildings pop up in Phnom Penh, it is a factor that helps increase investment capital,” he said.

“The supply and demand in high-rise buildings does not cause any problems now. However, in the future the supply will increase, so it will take time to fill everything,” he added.

Noun Rithy, the general manager of the Bunna Reality Group, said recently that political and economic stability helps all sectors increase, not only the property sector, and draws more investors to the kingdom.