287 housing developers get licences in 2010-21: REBPB
287 housing developers get licences in 2010-21: REBPB
A total of 287 housing developers – accounting for 408 projects with capital investment of more than $7 million – have been licensed by the Ministry of Economy and Finance or its Real Estate Business and Pawnshop Regulator (REBPB) from 2010-2021, according to the REBPB head.
Chou Vannak, director-general of the REBPB under the ministry’s Non-Bank Financial Services Authority (NBFSA), on February 7 spoke at a trade workshop organised by the Cambodian Land Lots Development Association (CLDA) on the management of real estate development, appraisal and related services.
He broke down the 408 developments by category as: 230 borey gated communities, 152 co-ownership buildings, two markets, one land division project and 23 mixed-use projects.
Land division refers to the process in which developers create new allotments by splitting land into smaller parcels with separate lot titles. This is done to boost the value of their land holding by leveraging the development potential of their property.
Vannak added that 2010-2021 brought about 52,126 flats, 13,888 villas, 104,975 condominium units, 812 business stalls and 189 plots of land.
Without adding further details, he noted that although there are many land division projects in Phnom Penh, developers by and large do not apply for licences from the ministry or REBPB.
Global Real Estate Association president and Sam SN Realty CEO Sam Soknoeun told The Post on February 9 that housing demand and investment was growing steadily prior to the Covid-19 crisis, but still fall short of pre-pandemic levels as investors and the general public for the most part live on reduced incomes.
“According to my observations, the demand for borey gated communities today seems to be stagnant, and construction at most projects muddle along at a subdued pace,” he said.
Although demand for affordable housing – under $50,000 – is still high, such units are unavailable in the capital at this time, due to the simultaneous rises in prices of land and construction materials, he added.
Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia (HDAC), said political stability, economic growth and a surge in the number of families had led to a steady increase in housing demand before the pandemic.
Despite the adverse effects of Covid on the overall socio-economic situation, housing development demand and associated activities on the whole did not decline, Vanna pointed out.
On the other hand, construction did slow down, he said, making the case that this is because most developments are invested in by foreigners.
“Demand and the housing market remain strong, even during the period of the Covid-19 pandemic. This market will remain on the positive side, as the sites for [new] residential buildings move further away from the centre of Phnom Penh,” he said.
In 2014, Cambodia adopted a national policy to promote the development of housing projects. Cambodia will need an additional 50,000 homes a year until 2030, the policy states.
