The Ministry of Land Management Urban Planning and Construction (MLMUPC) has approved around 2,500 construction projects costing around $3.8 billion in the first six months of 2020.
However, because of the impact of COVID-19, most developers of permitted projects are still waiting to begin construction, according to Cambodia Constructors Association (CCA) Secretariat General Manager Chhiv Sivpheng.
He said that during COVID-19, information from the Land Ministry shows an increase in construction investment capital but companies are waiting to start construction when the pandemic is under control.
“We hope that those who have a permit to build can start their construction when COVID-19 is controllable with no more transmission cases or when there is a vaccine [available] for it,” he said.
James Hodge, associate director of real estate company CBRE Cambodia, thinks that it is encouraging to see activity in construction permitting continue. “It is an indication of underlying confidence from developers in the future of Cambodia’s real estate industry,” he said.
“However, the impacts of COVID-19 have changed many market fundamentals, especially on the demand side, which has increased pressure on both rents and prices in many sectors. As a result of this, developers may be holding off construction starts in the hope that the market will have recovered fully by the time that their project completes. And, for others, it may be taking longer to raise the capital needed to start development, especially if the cash flow from other businesses and ongoing developments were impacted by the pandemic.”
One project in Phnom Penh that is powering full steam ahead though is The Palms.
It is being developed by Oxley-Worldbridge (Cambodia) Co Ltd, a joint-venture between Worldbridge Land (Cambodia) Co Ltd, a Cambodia-based real estate company, and Oxley Holdings Ltd, a Singapore-based property developer.
The Palms is located in Chbar Ampov district, alongside the majestic Mekong River. It features a collection of more than 200 exclusive cluster homes and superbly luxurious villas surrounded by palm trees, lush greenery and glistening waters – a perfect setup for a home seemingly a world away from the hustle and bustle of the city.
Residents of The Palms can live a life of unprecedented resort amenities within a private community. Every unit has access to terrace living rooms, man-made beaches, BBQ dining pavilions, water playgrounds, hydrotherapy pools, several lap pools and a grand lagoon pool.
The Palms sits right along National Road 1 and is a five-minute drive from the Tonle Bassac Bridge. This quick access to the bridge allows its residents to easily navigate anywhere in Phnom Penh through Preah Norodom, Preah Monivong and Hun Sen Boulevard.