Influx of foreign investment will propel the construction sector in 2023

The Cambodian construction sector is projected to continue to recover in 2023, driven by an influx of foreign investment.

According to a circular on the preparation of the draft law on finance for 2023, Prime Minister Hun Sen says that the construction sector is projected to continue to recover at a rate of 7.2 percent in 2023 due to anticipation of a recovery in the inflow of foreign investment in construction for tourism and trade.

The PM added that construction investment in the first half of this year has reached more than $ 1 billion.

At the same time, low- and medium-cost housing construction is expected to continue to maintain good growth due to the increase in demand and increasing domestic investment.

Real estate, on the other hand, is projected to grow at a rate of 5.2 percent in 2023 due to expectations of a recovery in buying and selling activity in high-end real estate, condominiums, and apartments.

Domestically, low- and medium-cost residential real estate is expected to maintain strong growth.

Mr. Charles Van, representative the President of the Cambodian Builders Association, said this weekend that, in 2021, the Ministry issued 4,303 construction permits with an investment of more than 5,333 million US dollars, and in 2020 there were 4,841 projects with an estimated investment of more than 7,753 million US dollars.

He also said that according to forecasts from the Ministry of Economy and Finance, the construction and real estate sectors are on the rise as the COVID-19 crisis eases and in 2022 the construction sector is projected to grow. 

There will be an increase of 5.4 percent, while the real estate sector will increase by 4.1 percent, and these two sectors will continue to grow.

Mr. Van added that he thinks investment in construction and real estate will grow again and will also provide employment for tens of thousands of people.

This is due to the Royal Government reviving the national economy after the COVID-19 crisis.

The president of the Cambodian Association of Appraisers and Realtors (CVEA), Mr. Chrek Soknim, said in an interview that Chinese investors may be looking to Cambodia for more investment in the construction sector, with additional investment in Sihanoukville, Phnom Penh, and provinces and it is expected that there will be more investment projects by the end of this year.

Mr. Chrek pointed out that the current real estate situation in the Cambodian market is gradually recovering – such as the sale of land, lots, and condominiums, most of which from domestic investors.

He encourages people who can afford to buy a condo or apartment to do so, as this is a good opportunity because the prices are below the market price due to the effects of the pandemic.

According to a report from the Ministry of Land Management, Urban Planning and Construction, in the first half of 2022, the ministry issued 1,984 construction permits totaling an investment of 1,041 million US dollars. 

Source: AKP

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