The Housing Development Association of Cambodia (HDAC) plans to create a working group between the government and the private sector to tackle key issues in the housing sector.
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Ly Hour, HDAC’s president, said the new group will help the association move forward and aid the development of the country’s housing sector.
“We will establish a working group between the private sector and the state to assume responsibility in resolving the problems of our members, particularly those related to electrical systems, compensation for land acquisition, taxes and water supply systems,” he said, adding that the association now has 43 members.
Po Eavkong, CEO and co-founder of Advance Real Estate Company, said the creation of the working group will be key in finding solutions to some of the biggest problems in the sectors in a timely and effective manner.
“To avoid problems, developers must adopt a long-term view. Infrastructure like roads, sewers, electricity supply systems, and water distribution networks in housing development projects need to be managed well.
“The private and public sector need to cooperate to develop and improve the housing sector,” Mr Eavkong said.
HDAC’s Mr Hour said his association has played a major role in real estate development in the capital and in the provinces, transforming low-priced land into valuable plots filled with modern buildings, commercial centres, offices and shopping malls.
“The association has developed infrastructure – such as roads, water supply networks and electric power systems – that has improved the livelihoods of people. We have also helped increased public revenue through taxes on residential developments,” he said.
According to Mr Hour, last year the association initiated a dialogue with the General Department of Taxation to discuss key tax issues in the sector, such as the amount of taxes to be levied when transferring a property title or when securing a construction permit.
The real estate sector contributes significantly more to public tax revenue than the industrial or retail industries and it’s a major element of national economic growth, he said.
According to a recent report from the Ministry of Land Management, from 2015 to 2030, Cambodia will need 800,000 new homes in urban areas – about 50,000 homes per year – to meet population growth.