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Government earns $366m from construction sector

Sum Manet / Khmer Times No Comments Share:
A view of the skyline of Phnom Penh from a rooftop. KT/Chor Sokunthea

The government collected more than $366 million in revenues from the construction sector from 2013 to 2017, mostly from land registration and cadastre, construction, land leases, and property title transfer services, according to a recent government report.

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Cadastre accounted for $37 million of those revenues, construction for $11.8 million, land leases for $337,535, and property title transfer services for $317 million, according to the report.

Chea Sophara, the Minister of Land Management, said the sector’s remarkable performance was a result of strong leadership in the government and within his ministry, and added that land titles have been one of their priorities in 2017.

“The ministry spared no effort in managing land titles, using and dividing the land with ethics and transparency,” he said.

“This work has helped us increase the national budget and reduce poverty, as well as boost food security, public land management, environment protection and economic development.

“The ministry focused on the implementation of the legal framework and technical standards to guarantee quality and effective management in the sector,” he added.

Hoem Seiha, research director of VTrust Appraisal, told Khmer Times that growth in the property market has cooled down this year due to the national elections in July.

“The mild growth is a result of a slowdown in primary demand for condominiums, whose buyers are mostly foreigners. Secondary demand for completed homes is still going strong,” Mr Seiha said.

“Large investors are more sensitive to political tensions,” he said. “By contrast, mid-income local buyers are still buying houses, although some of them are looking for cheaper properties. This is why in the property market still showed strong growth last year.”

The combined value of approved construction projects reached $6.42 billion in 2017, an increase of 22.31 percent, according to a report from the Ministry of Land Management.

Across the country, 3,052 new construction projects, equaling 10.74 million square metres, broke ground. Moreover, the ministry granted construction licenses to 275 companies, which was a decline compared to last year, when 334 licenses were issued.

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