Cambodia will need 50,000 houses per year

• 20 March 2020
• Property Focus
• 3516 Views

Cambodia will need around 50,000 houses a year in order to supply the growing population, according to researchers’ predictions.

“At present, we are responding to the housing supply for the private sector by constructing houses to fulfill the needs of the people,” said H.E. Seng Lot, Ministry of Land Management spokesperson, at a press conference organized by the Royal Government Spokesperson Unit at the Office of the Council of Ministers on 16 March 2020.

The increasing rate of investment in housing, condos, boys, and apartments, might cause an unpredictable crisis later due to oversupply, according to some experts. This means that once the buyers have sufficiently met their personal demand, the oversupply of the houses will remain.

“I believe that is not the case. The demand is no more than that supply. That is what the government wants; we want more investment, and that is good for our economy,” added the MLMUPC spokesperson.

“According to economic theory, when supply either exceeds or surpasses, unless prices fall, that is when they considered it as excessive. However, in Cambodia, the prices haven’t fallen yet. This means supply and demand are corresponding to one another,” he continued.

“The demand is slightly higher than the supply these days. It ranges between 3% to 5%, which is just a normal price because the price of goods in Cambodia is also increasing a bit higher this year.”

According to the 2019 Annual Performance Report of the Ministry of Land Management, Urban Planning and Construction, from 2000 to 2019, 249 5-storey buildings or higher were built, 5072 house projects, 54 Borey projects, 25, 269 apartments, and 173 condo projects.

• Economy and Finance
• Urbanization and Architect