Building Projects Up While Value Down in 2014

• 31 December 2015
• Local News
• 1205 Views

Cambodia recorded a rise in the number of construction projects last year, while its total construction value was down against 2013.

The Ministry of Land Management, Urban Planning and Construction approved 1,960 construction projects with a total construction area of 6.4 million square meters worth a total of US$2.5 billion last year. This was a rise of 339 projects over 2013 when 1,641 projects with a total of 7.59 million square meters were registered.

However, while the number of construction projects in 2014 rose, the net construction value was down 9.58% against the US$2.773 billion net value seen in 2013.

The fall in construction value in 2014 against the previous year is due to many large-scale construction projects being registered in 2013 including the US$1.1 billion Bouyoung Town and the US$205 million Aeon Mall, according to data from the Ministry’s Construction General Department released in February.

Between 2000 and 2014, both the national and sub-national level issued 31,911 construction permits covering a total of 71.64 million square meters of construction space worth a total of US$22.38 billion.

At the ministerial level in 2014, 178 projects were issued construction permits that covered 5.26 million square meters and worth about US$2.15 billion. This was a decrease of 7% against 2013 which saw 158 projects covering 5.98 million square meters worth US$2.32 billion registered.

At the city-provincial level, 1,782 projects were approved over 1.1 million square meters worth US$349 million. This represented a decrease of 22.75% against 2013 when 1,483 projects were registered on a total landmass of 1.6 million square meters worth US$452 million.

Last year, the ministry also issued business operation licenses to 262 construction-related firms (170 local firms and 78 international firms). This marked a surge of 50 firms compared to 2013 when only 212 firms were registered. Up until the end of 2014, 1,504 firms had been issued business operation certificates, but only about 300 of them are currently active.

Last year, the ministry also registered 27 individuals working in the construction industry including 14 architects and 13 engineers, an increase of 19 individuals over 2013 when only 8 were registered. So far, the ministry registered 71 architects and engineers.

Since the government has allowed foreigners to own parts of co-owned private properties from the first floor up, between 2010 and 2014, 1,949 property titles were issued to foreign owners.

The nation’s construction industry absorbed 168,858 workers per day last year that includes 4,988 architects and engineers, 12,470 skilled workers, and 151,400 non-skilled workers. The monthly wage they receive ranks from a minimum of 600,000 riels or US$150 to a maximum of 6,000,000 riels or US$1,500. Compared with 2013, the industry workforce increased two fold in 2014 due to the rising number of projects.

Looking toward its priorities for 2015, the ministry will continue drafting the six additional chapters of the architectural standards; continue drafting the building standards on the method of brick installation and masonry-related works; complete the 12 chapters of construction material consumption standard and especially complete the long-awaited construction law.

By the end of December 2014, the ministry counted 361 buildings that were being erected from 5 to 9 floors in Phnom Penh, 167 buildings from 10 to 19 floors, and 21 buildings standing between 20 to 29 floors. There are also 8 towers being erected to between 30 and 39 storeys and only 4 buildings that stand as tall as 40 floors up.