Government Grants Licenses to More Than 200 Residential Developers

• 22 June 2019
• Local News
• 1658 Views

More than 200 residential developers have been granted permission to operate their housing developments, according to a senior official from the Ministry of Economy and Finance (MEF).

Speaking at the Purchase-Sale Agreement event of Arakawa residence earlier this week, Deputy Director-General of the MEF’s Finance Industry Department, H.E Ros Phirun said as of May 2019, the ministry had granted a total of 309 licenses to 201 residential developers.

Those granted licenses are for 285 residential development projects, of which 152 projects have been completed and 133 are under development, H.E Ros Phirun said.

The licenses came amid the government Prakas on Management of Housing Development on the rules, measure, and procedures for managing and controlling housing development in Cambodia.

The ministry also requires all residential developers to make deposits, guarantee their businesses, declare their capital, confirm their investment capital, and to use the housing development account (current account) to maintain and operate customers’ liquidity transactions transparently. It also requires residential developers to make a clear business plan.

According to the figures from the Ministry of Land Management Urban Planning and Construction (MLMUPC), residential developments have increased dramatically, with 35% of construction investment in 2018 going to residential development projects worth about US$1.8 billion from the total US$5.7 billion.

In addition, urban housing demand will continue to rise to 777,273 houses from 2015 to 2030, about 51,818 houses per year.

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