NBC: Construction and Real Estate Sector Growth in Cambodia Has a Slow Pace

The construction and real estate sectors saw growth of 1.1 percent and 0.5 percent in 2023, respectively. This is according to the report of the National Bank of Cambodia, released on January 29. 

The construction sector is expected to grow at a slower pace of 1.1 percent in 2023, compared with 0.5 percent in 2022, supported by the development of public infrastructure such as bridges, airports, and expressways.

Imports of construction materials and equipment increased by 4.7% compared to 2022 (-25.6%). The area and capital of approved construction projects increased once, especially for residential and public construction projects, while the total number of construction projects decreased by 20.5 percent.

The real estate sector also continued to grow at a slower pace of 0.5 percent, compared with 0.2 percent in 2022, the report said. Sale transactions of residential properties, including apartments, twin villas, and single villas, were down 49.7 percent, while condo sales rose 2 percent.

The Residential Property Price Index (RPPI) fell 2.4 percent, including Phnom Penh, down 3.2 percent, and in the provinces, up 3.2 percent.

In its Macroeconomic and Banking Sector Development in 2023 and Outlook for 2024, the National Bank of Cambodia stated that in 2023, the construction sector received low growth, mainly driven by investment and development of public infrastructure, while foreign investment in real estate declined.