The Cambodian Ministry of Land Management, Urban Planning and Construction reported that construction industry in the country remains stable despite global facing serious downturn due to COVID-19.
According to source reported that ministry’s spokesperson, Seng Lot disclosed that construction projects are on the rise in Southeast Asian country. In end February this year, more than 500 construction projects applied for permits with ministry, compared to last year, which is only 300 applications. This had showed the industry is not severely affected.
The top three investors are China, the Republic of Korea and Japan, adding that despite a rise in the number of COVID-19 cases in Cambodia, there has been no postponement on major projects.
Based on the ministry released figures, investment in the sector reached around USD 11 billion in 2019, surging by nearly 90 percent from USD 5.5 billion in 2018.
Kim Heang, regional operating principal of the US-based real estate firm Keller William Cambodia commented that though currently encounter the epidemic however this could allow construction companies negotiate lower labor & material cost. Meantime, developers are also benefitting from 4% stamp tax exemption from the government from February 2020 to January 2021.