PHNOM PENH: According to a report by the Ministry of Land Management, Urban Planning, and Construction, capital in the construction sector fell by 60% in the first five months of 2021 compared to the same period in the previous year. However, the drop in capital and construction projects in early 2022 will not affect the sector as a whole.
Oknha Kim Heang, President of KW Cambodia recently report with AMS that the decline will not affect the whole sector but individuals and only developers with insufficient capital.
“We acknowledge that there has been a decrease in recent months, but the stalemate on some construction projects is a matter of individual concern.” Because some projects have almost no capital, no experience, no sales, and construction team, the construction industry is unaffected by the stalemate of some projects. There are no other projects in Cambodia, while others are still building, selling, and launching new ones.” He continued.
Oknha added: “They will not build more if the construction project is not sold, so there will be little investment in new projects this year. Some of the other projects are selling like hotcakes, and they are releasing new projects in a row, so some of the best people are still getting it for the time being. New projects were supported and developed.”
According to Chrek Soknim, president of the Cambodian Valuers and Estate Agents Association (CVEA), the effects of the Russia-Ukraine war are unavoidable, but will not have a significant impact on Cambodia because local investors have begun to reinvest in real estate and construction, particularly in early 2022. It takes time to entice foreign investors to return to Cambodia.
He stated that only a small number of foreign investors have emerged and that they expect to begin studying the potential of investing in Cambodia in the next half year as local investors are active and ready to welcome foreign investors, particularly from China.