Hopes high for S’ville realty revival
REAL estate experts and local authorities believe that new government measures will soon boost Preah Sihanouk province’s economy, particularly in the rejuvenation of its construction, real estate and investment sectors.
Following the government’s January 10 resolution regarding development plans for the province, the Ministry of Land Management, Urban Planning and Construction issued a February 12 notice outlining the implementation of the “Special Investment Promotion Programme in Preah Sihanouk for 2024”.
The ministry intends to streamline the procedures and forms for construction permits, including those for opening and closing construction sites, thereby expediting their issuance to relevant companies.
The notice states that, to effectively implement the initiative, the ministry will deploy professional officers to inspect and certify architectural plans and construction material designs and ensure quality and safety.
This applies particularly when the construction owner lacks a report or letter from a licensed inspection and certification company.
“Additionally, the ministry will station a technical team at the [provincial land management department] and the One Window Service Office [OWSO] of the ministry to provide necessary information and services,” it said.
Sam Soknoeun, president of the Global Real Estate Association, told The Post on February 14 that the plans announced by the authorities aim to simplify processes for fiancers and attract more investment.
He noted that the global economic crisis over the past four years has resulted in numerous unfinished building projects.
He said the ministry’s facilitation
in adhering to construction laws and managing sites is crucial to expedite and complete the long-delayed projects.
Soknoeun noted that the situation at the start of 2024 had not markedly changed from the end of 2023; however, he remains hopeful.
“This is a positive starting point. I am optimistic that the real estate and construction sectors there will show improvement compared to last year. The extent of this improvement, though, remains to be seen,” he said.
Im Seng Hour, branch manager of Century 21 Zillion Holding in the provincial capital of Sihanoukville, noted that the global economic crisis triggered by Covid-19 in early 2020 has caused significant issues for over 1,000 high-rise projects.
He said these have either faced delays or remain non-operational despite completion.
Seng Hour emphasised the importance of the government’s efforts to inspect construction and streamline
the procedures for resuming activities and in attracting investors.
“I believe that the construction sector in Preah Sihanouk will undergo significant changes in 2024, given the government’s implementation of numerous legal support and facilitation measures
for those wishing to invest in the sector,” he said.
He added that the completion of the previously unfinished projects would spur growth in both the real estate sector and the province’s overall economy.
Seng Hour also noted that alongside measures to support the sector, the government is currently planning to construct a new road from the Ream Naval Base to National Road (NR) 3.
A good time to invest
Prime Minister Hun Manet announced the programme on January 31, which outlines several key measures aimed at promoting and encouraging investment and business activities in the province.
He detailed the approach, which includes modernising procedures related to investment and business.
The premier said this encompasses facilitating the issuance of permits and visas, providing tax incentives, exempting public service fees, offering other concessions related to construction, preparing development areas in villages, communes and along main roads, investing in infrastructure projects, developing industrial zones and exploring potential land development for industrial or enterprise clusters and tourism areas.
Provincial deputy governor Long Dimanche stated that all the key measures introduced and implemented by the government and the ministry are designed to promote the development and economic growth of the province, highlighting that it is one of the country’s economic poles.
“This year can be considered an opportune time for financers, as investing during this period will offer certain benefits. The provincial authorities have also established a working group to facilitate investment. The business and construction sectors are gradually beginning to recover,” he said.
“We anticipate a more positive economic outlook from 2024 onwards,” he added.
Provincial governor Kuoch Chamroeun revealed in mid2023 that the region had 1,006 high-rise buildings, with 400 completed and operational and approximately 200 finished but not yet functional.
He said there was a significant influx of foreign investors between 2016 and 2019, primarily focused on hotels and casino buildings.
According to Chamroeun, the surge of investment led to an increase in property prices. However, since the end of 2019, a combination of factors including the closure of online gaming, the spread of Covid-19 and various global challenges has resulted in many buildings remaining unfinished.