Demand in Phnom Penh growing
Cambodia still needs more housing to meet the rapid growth of the population, urbanisation in the capital city and economic growth, a government official has said.
Pen Sophal, a secretary of state for the Ministry of Land Management, Urban Planning and Construction (MLMUPC), said that from 2015 to 2030, Cambodia will need about 800,000 homes to meet demographic growth and social economic growth.
“With the rapid growth of the economy and urbanisation, the ministry found that the population of urban areas in 2014 was 4.5 million, equaling 27.1 percent and will continue to reach 7.92 million by 2030, or 44 percent of the total population of Cambodia,” he said.
“Because of the country’s economic growth, urbanisation has also increased rapidly.
“According to the data, it shows that for 15 years [2015-2030] residential demand for the capital city and urban areas is about 800,000 homes, which averages out at about 50,000 homes per year,” he added.
“The response to this issue has been actively implementing the national policy on land management and land planning at all levels and the national policy on housing, affordable housing for civil servants, the armed forces and
moderate-income residents, low income and the vulnerable in order to ensure sustainable development.”
Rapid urbanisation in Phnom Penh in the past decade has created jobs and reduced poverty, but better urban planning, management and infrastructure are needed to avoid further sprawl, congestion and pollution, according to a recent World Bank report.
Chrek Soknim, the CEO of Century 21 Mekong, said with the city expansion and the population growth in the city, people who move to live on the outskirts need affordable houses.
“Due to the population growth in the city, local people demand a housing supply and those are real demands for living,” he said.
“The land prices in the central city are high and it’s full of people, so developing projects with affordable prices on the outskirts is good for low-, middle- and middle-income people,” Mr. Soknim said.
A study from the World Bank found that Cambodia’s average rate of urban expansion was one of the highest in the region, second only to that of Laos.
It noted, however, that the population density in Cambodia is significantly higher than in Laos, with 8,600 people per square kilometre in the kingdom versus 3,200 for Laos.
Driving the kingdom’s growth is the rapid urbanisation of Phnom Penh, the only urban area in the country with a population greater than 100,000. The capital grew to 160 square kilometres in 2010, from about 110 square kilometres in 2000.