Construction & Real Estate Sectors Growth Conditional on How Gov’t Contains COVID Outbreak: NBC

Due to the 20 February COVID-19 community outbreak, the growth projection of the construction and real estate sectors remain highly conditional on how the government contains the outbreak and how global and regional economic activities will rebound in the second half of 2021, according to the National Bank of Cambodia (NBC).

NBC’s Financial Stability Review 2020 published on 31 May stated that the number of construction projects in 2020 grew by only 1%, with a 32.1% y-o-y drop of investment value.

The total construction area also declined by 26.9% to only 17 million sqm. In addition, the construction sector contributed -0.2% to the GDP growth in 2020, which registered negative growth.

The report also added that the slowdown in this sector is due to the decrease in the number of projects and investment, as well as the drop in imported construction materials and equipment that mainly stem from the pandemic.

However, if the government can successfully contain the outbreak, the situation is expected to improve in the second half of 2021.

With the improved global and regional economic outlooks, the market confidence in 2021 would be restored, and FDI inflows to these sectors would also progressively revive, although not to the same extent as 2019, added the report.

- Video Advertisement -

Related Post

USAID’s Withdrawal Paves the Way for China’s Expanding Influence in Cambodia & ASEAN

The abrupt freezing of USAID funding under the Trump administration has halted vital infrastructure and development projects across Southeast Asia, leaving a geopolitical vacuum that China is poised to fill. With USAID’s cessation, critical services in Cambodia—including healthcare, education, and demining efforts—face significant disruption. The United States, which allocated nearly USD 68 billion in foreign […]

ASEAN Real Estate Markets Navigate Headwinds as China’s Economy Falters

The USD 722 billion trade relationship between China and ASEAN faces unprecedented pressure as China’s property sector, which accounts for over 25% of its GDP and 70% of household wealth, shows serious signs of distress amid plummeting consumer confidence that reached near-record lows of 86 in July 2024, according to Evrimagaci.org on 31 January 2025. […]

Southeast Asian Real Estate Markets Poised for Unprecedented Growth

Southeast Asia’s real estate landscape is experiencing a transformative shift, with premium properties in Singapore’s city center commanding USD 20,000 per square meter while emerging markets like Cambodia offer entry points as low as USD 1,000 per square meter. This comprehensive market analysis draws from extensive regional property data and market forecasts across five key […]

Despite New Loan Not Yet Approved, Chinese Investment Dominates Cambodia’s FDI

Cambodia continues to attract substantial Chinese foreign direct investment, maintaining a commanding 47% share of total FDI as of Q2 2024, despite recording no new Chinese government loans in Q3 2024. This sustained dominance in foreign investment follows a consistent pattern, where Chinese FDI has maintained majority control ranging from 48% to 56% since 2020, […]

Cambodia’s Real Estate Market Faces Mixed Signals Amid Regional Benchmarks

Cambodia’s commercial real estate market reveals significant challenges with office occupancy rates at 65.1%, well below the international benchmark of 85-90%, while maintaining premium rents at $27 per square meter, according to the “Fearless Forecast” report presented by CBRE Cambodia Chairman Marc Townsend at Novotel Phnom Penh BKK1 on 14 January 2025. The retail sector […]

Cambodia Poised for Economic Windfall as U.S. Trade Policy Shifts from Vietnam

Cambodia stands to emerge as a major beneficiary of potential U.S. trade policy shifts, with experts predicting significant manufacturing opportunities if Donald Trump returns to office, particularly as Vietnam faces possible trade tariffs similar to those previously imposed on China, according to 2025 Fearless Forecast shared at a Real Estate Forum in Novotel Phnom Penh […]