The construction of a skyscraper in Phnom Penh.Property-abroad.com
News Posted On: 13 May 2011
All the signs are that the Cambodian construction industry is thriving as the value of projects approved by the Cambodian government has more than doubled during the first quarter of this year when compared to the same time period last year. This means that projects worth US$324 million were approved this year as opposed to US$159 million last year.
Much of this increase came about due to the Department of Constructions efforts to make the construction industry run more smoothly. The director of the Department of Construction, Lao Tip Seiha commented that there has been an increase in the number of construction companies asking for licences and that a number of large developments had been approved.
These include a new hydropower plant, textile and garment factories, and hotels and petrol stations. Several new housing developments have also been given approval. Lao Tip Seiha has said that he hopes to see the value of constructions increase and that while there are fewer projects than last year they are of much larger value. Some industry insiders feel this is because foreign investors are returning to Cambodia. Cambodia Properties Ltd has seen business increased by 100% during the first three months of the year and has close deals with investors from Malaysia, the Philippines, Vietnam and South Korea.
The Cambodia Country Manager for CB Richard Ellis, Daniel Parkes feels that last year represented the bottom of the market, and that Cambodia has good potential for sustained growth. This is because there has been increased investment in public sector projects which will lead to increased investment from the private sector.
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