Housing development Association of Cambodia (HDAC) this week said development of the residential projects are growing year-on-year, citing the Kingdom’s sound macro-economic performance.
“Residential development projects have remained in high demand in the market and it will see more in the future,” said Ly Hour, HDAC president, who was speaking during the association annual meeting in Phnom Penh.
Ly, a Cambodian tycoon who owns multi-businesses in the country, said the association represents 68 companies working in the residential business, noting the association has committed its effort with the government joining to stimulate further development in the real estate sector.
“We have a clear vision to uplift the property standards in the county, not just borey constructions but there also will focus on condominiums, trade centres and other high-rise buildings. These kinds of investments are important because we understand that they will certainly contribute to the country’s economic growth,” he added.
Chea Sophara, Minister of Land Management, Urban Planning and Construction who was also speaking during the meeting, acknowledged real estate plays an important role in the country’s development.
Last year, the sector had an investment about $11,000 million, up more than 90 per cent when compared with 2018, which was just $5,500 million, he noted.
From 2015 to 2030, the demand for new homes is estimated be 1.5 million. The demand in Phnom Penh alone should amount to some 800,000 more houses.
Based on this figure, Cambodia would need to build 50,000 units per year to meet the demand because of rapid urbanisation, said Lao Tipseiha, secretary of state of Land Management at the Urban Planning and Construction Ministry.
He said that by the end of 2019, Cambodia supplied more than new 38,488 general houses and 8,331 of affordable homes across the country.
Huy Vanna, general secretary of the association, told Khmer Times yesterday the association is now monitoring the COVID-19 situation that will affect the residential market.
“We have seen signs of an effect on the sector. This has concerned us. But it is a global epidemic, not just the local economy. It would affect the market for three to six months,” Huy said.
He noted the association has now joined forces with the government by pushing its members to cut prices. However, he did not disclose yet how many per cent the association members will discount prices during this tough situation.
“Following the government decision to cancel the 4 percent stamp duty for residential properties under $70,000 until next January and at the same times asking to discount prices, now, as residential players, we are working with our members and we also deeply appreciated the measure taken by the government on tax relief,” he said.
The National Bank of Cambodia (NBC) said the construction sector was one of the main economic drivers for 2019 economic growth, which is estimated to have reached 7.1 percent. According to the NBC’s Macroeconomic and Banking for 2019 Report and 2020 Outlook, the imports of building equipment were valued at nearly $1 billion, up from nearly $600 million in 2018.
“The construction and real estate sector continues to grow, which is reflected by a trend of increasing imports of building materials and approved construction projects,” the NBC said.