Iron and steel imports up nearly 60 percent
Iron and steel imports up nearly 60 percent
According to the data released by the General Department of Customs and Excise (GDCE) earlier this month, iron and steel imports into the Kingdom increased by 59.2 percent during the first eight months of 2024 compared to the imports of these two core construction materials in the first eight months of 2023.
The rise in iron and steel imports this year suggests a positive outlook for the domestic construction and real estate sectors, key engines of economic growth which have been relatively subdued in the post-Covid era, including 2023, as compared to heights witnessed in the market in 2019 and previous periods.
During the first eight months of this year, iron and steel imports into the country totalled a value of $404 million, as compared to the $254 million imported during the first eight months of 2023.
Iron and steel imports represented approximately 2.1 percent of all national imports for the year to date.
Furthermore, the month of August alone saw a considerable boost in demand for iron and steel compared to 2023.
Imports of the two materials reached $51 million last month, a 35.1 percent jump compared to the same month last year.
The rise in construction materials imports witnessed so far this year follows a general improvement in the Kingdom’s overall trade volume, according to the GDCE’s most recent assessments.
Cambodia’s total trade volume reached $36 billion as of September 2024, an increase of 16.5 percent compared to the first eight months of 2023.
Goods exported rose to over $17 billion in the period, reflecting a 16.7 percent rise compared to last year.
In the same period, the country’s imports totalled close to $18 billion, 16.2 percent more than those recorded in the first eight months of 2023.
Growth in demand for key export goods is driving this year’s trade increases, as well as diversification among both the country’s import and export markets.
According to a recently released report from Phnom Penh-based real estate consultancy, CBRE Cambodia, entitled ‘Adapting to Change: Trends, Strategies, and Opportunities for Cambodia’s Real Estate Developers and Landlords’, despite some improvements in the national real estate sector in 2024 compared to previous periods, the office, retail and residential project space remained subdued as of H1 2024, with a continued slowdown in new launches, as well as continuing depreciation of sale and rental prices for property sellers, landlords and developers.
The report, however, noted a relative strengthening in the high end condominium segment of the market, with quoted sales prices remaining relatively steady, as well 2200 newly completed units entering the market in 2023’s first half.
Furthermore, the firm’s report noted significant improvements in the industrial real estate market, buoyed by demand from incoming foreign direct investment (FDI) into the manufacturing sector, alongside improving market conditions for industrial investors.
The report noted that the industrial market is seeing sustained growth, reflecting Cambodia’s ongoing integration into regional supply chains.
CBRE Cambodia’s analysis predicted that this FDI growth, combined with ongoing strategic infrastructure improvements being implemented by the government, is likely to attract further investment into the industrial estate sector in upcoming periods.
CBRE’s findings detailed that 120 hectares of new industrial real estate was added to the market’s existing supply in the first half of 2024, citing average land lease rates of $61 per square meter for incoming investors, based on a 50 year lease term.
