Govn't Approves $2.53 Billion of Construction Investment Projects in the First Half of 2024

In the first half of this year, investment in Cambodia's construction sector reached $2.53 billion, down 8 percent from year on year.

According to a report by the Ministry of Land Management, Urban Planning, and Construction, the royal government of Cambodia approved 1,642 construction projects between January and June, down 11 percent compared to last year. 

Approved projects include residential development, condominiums, industrial and commercial areas, resorts, tourism, and hotels.

The Ministry of Finance and Economy predicts that as one of Cambodia's four main economic pillars, the construction and real estate industries will gradually recover by 2024.

It should be informed that in the Government-Private Sector Forum held in November last year, Prime Minister Hun Manet announced a series of encouraging measures to help the recovery of the construction industry and real estate stuck in the economic crisis.

Among those measures, the government also allows foreigners to indirectly occupy and use land through the "Trust" process. The government also allows the lease of land signed between landowners and foreigners to be extended from 15 to 50 years, or up to 100 years.

The government and the National Bank of Cambodia will also encourage banks and financial institutions to review and restructure loans for clients who buy real estate to help developers facing cash flow problems.

In addition, the government has postponed the effective date of capital gains tax (20%) on real estate until December 31, 2024.

Moreover, all Borey transactions will be exempt from stamp duty (4%) for the house price below or equal to $70,000 to promote the sale of housing and reduce the burden on home buyers.