Back in 2007 and 2008, in the capital city of Cambodia, we could see that constructions of buildings, skyscrapers and city developments are very active.
The advertisements of the skyscraper and city development projects were seen every day on local magazines, newspapers and televisions.
National, International experts inside the industry called this moment as the time of Cambodia’s construction boom.
Unfortunately, the construction boom was unable to overcome the global financial crisis which began to take effect since the middle of 2007 and slowly appeared in Cambodia in 2008.
Most of South-Korean mega projects like Gold tower 42, Camko city, the star river have been on hold and some other projects like International Financial Center, Pharos Mekong had also been cancelled.
There are numerous of small and medium construction projects which are also on hold and cancelled.
In 2010, the hard time was gone but this sector could not return to the situation like in the period of the construction boom.
Some foreign investment projects still suffered from the world economic crisis and only local investments managed to continue and complete their projects.
The Ministry of land management, urban planning and construction figures showed a total of 2,149 projects which worth $840 million were approved in 2010. The sector started to recover slowly since that year.
In 2011, the situation was much better than 2010. The figures showed that the value of construction approval in the first 11 month granted by the government authorities had increased up to 158% compared with the same period in 2010.
From January to November of 2010, around 2000 construction projects worth US$ 655 million had been approved compared with the same period of 2011 which approved 1,980 projects cost up to US$ 1.6 billion.
This shows a significant growth in real estate investment in Cambodia. It proves that the sector is recovering quickly and gives us hope for the following years especially 2012, the year that we are in now.
What does expert in real estate expect for 2012?
Mr. Keuk Narin, vice president at Asia Real Estate told KhmerBird via email interview that:
For the Real Estate sector in 2012, I also can see a good sign, in term of the transaction is increasing if we compare to the same period last year. Buyers and sellers are confident on the market, bank also give more and easier option to borrower. Combining with our economic and recent common from Samdech Prime Minister to allow and motivate to the developer or investor to develop the skyscraper. In general, we can say our real estate sector in this 2012 will be more positive.
On the opening ceremony of the new Ministry of Land Management, Urban Planning and Construction yesterday, Prime Minister Hun Sen expressed his encouragement for building new skyscrapers in Phnom Penh while also stated that the total investment in 2011 hit 105% which worth up to US$ 1.73 billion.
He also urged OCIC chairman, Oknha Pung Khiev Sae to realize his vision of the Asia’s tallest building which will be built on the Diamond Island.
While investors are coming to invest in new projects, many old projects will be completed in this year.
For example, Vattanac Capital is expected to be completed before the end of this year and this new iconic building will be another grade-A office building in town.
Canadia is also start working on the foundation of The Riviera building which looks very similar to the Marina Bay Sands in Singapore.
In conclusion, 2012 is seen as a good year for real estate development in Cambodia and we hope it will really be.
We also hope that the construction boom will happen again.
The Riviera, Marina-Bay-Sands-like Project on diamond island
Vattanac Capital is going to finish in October
About Sao Phol Reaseyh
Recent Comments