The final drafting stages of the legislative process have started for the Cambodian Construction Law that will help introduce much-needed international standards to the local property industry, the Phnom Penh Post reported.
These laws will ensure Cambodian developers have to abide by a national building code and other laws which are currently not in place. Several developers have begun to prepare for the changes by hiring international sub-contractors to help make up for the skill and knowledge shortage currently found in the Cambodian property industry.
“Cambodian developers are increasingly employing Thai, Singaporean, Vietnamese and other international architects to help them plan new developments,” Elain Younn, director of 240 Development Company, told the Phnom Penh Post.
Younn added that local developers are not ready for the cost of this guidance in terms of construction standards. Bringing in international sub-contractors for the construction process, including structural engineers, plumbers, electrical engineers, lift installation specialists, security equipment and fire safety standards has seen the price of completed projects rise threefold in some instances. The trade off of a higher price is a safer building, however.
“What we are seeing across the development market is an ongoing education process with real and physical examples that demonstrate the value of quality – and this means people no longer feel assured living in substandard buildings,” said Younn.
Many ASEAN countries are aiming to increase their appeal to foreign investors and Cambodia decided to improve its building practices in response to this movement. The upgraded building laws could help improve its status in the eyes of foreign investors. The country already has cheap land prices as well as untapped economic potential.
“The major attraction for foreign investors considering buying property in an ASEAN country is Cambodia’s steady economic growth; phenomenally steady growth averaging 7.5 percent, year-on-year, for the last five years. This puts Cambodia as the number 21 worldwide in growth, and number 1 in the region,” Rami Sharaf, CEO of WorldBridge International Group, said.
Image via investphnompenh.com
