Construction Boom to Slow

[geovalin]

The Kingdom’s construction boom will slow down in the next five years, according to government estimates, due to a glut of building space in the capital Phnom Penh and falling demand for new properties. According to figures from the Ministry of Economy and Finance, the slowdown has started this year and construction of new buildings will get progressively slower over the next five years.

The ministry gave a breakdown, indicating that this year will see a growth rate of 15 percent in the construction sector, compared to a growth rate of 19 percent last year. Next year, the construction sector will slow down to a growth rate of 12.4 percent. In 2018 it will decline to 10.3 percent and 2019 it will drop to 10 percent. Minister of Economy and Finance Aun Pornmoniroth said on Tuesday in a workshop on macroeconomic policy framework and public financial management at the National Assembly that the country must brace itself with the expected slowdown in the global economy.

“We will see a slowdown in the construction sector. But that’s a good thing for the Cambodian economy because the property sector is reaching the stage where there is an oversupply of building space,” said Mr. Pornmoniroth. “This oversupply can be a risk factor for the economy,” he added.

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