The first affordable housing project targeting lower- and middle-income families will be completed by end of this year, according to the source in charge of the project.
Worldbridge Homes Co. General Manager, Yuk Sothirith released that Serey Mongkul Satellite City located outskirts of the Phnom Penh, land size 23 hectares with a total investment of approximately USD73 million. It had completed 603 houses and balance 2,457 houses are in the midst of building.
Deputy Prime Minister and Minister of Land Management, Urban Planning, and Constructon, Chea Sophara announced that government would be assisting with infrastructure such as roads, water and electricity.
In 2017, the government drew up affordable housing policy; aim to improve the life of low- and middle-income earners by encouraging developers to diversify their focus towards low-cost housing developments.
The policy provides incentives for developers such as tax breaks and reduced red tape including approvals for construction permits and business licenses. It also given special rates for income tax, property tax and value-added tax. However, in order to enjoy these incentives, projects must comprise 100 units price between USD15,000 to USD30,000. It must be within 20 kilometers away from Phnom Penh city and require to feature green spaces. Developers must also cooperate with financial institutions to plan a credit schemes with low-interest rates to enhance the project’s affordability.
Currently, there are five projects gotten construction permit from the ministry. Two are located in Phnom Penh, two in Kandal province and one in Poipet’s Banteay Meanchey provincial city, housing 8,331 units in total.