Cambodia Gives Out Incentives To Property Developers That Will Build Affordable Housing
The Cambodian government is ramping up on efforts to build affordable housing and announced this week that tonnes of incentives await property developers who will participate in the program. Among the benefits that could lure in developers and investors alike is the promise of significant tax breaks.
In a policy briefing conducted by the country’s Ministry of Economy and Finance, Phnom Penh said it hopes to accelerate “the development of housing projects for the less wealthy segments of society,” with the package of incentives that will also include the fast-tracking of approvals for construction and business permits.
Cambodia gave assurance that developers who will take on these low-cost housing projects will get full and speedy assistance on their bureaucratic concerns, the Khmer Times reported.
“Our aim is to improve the lives of underprivileged citizens and help them afford proper housing,” a senior ministry official was reported as saying by the publication.
Benefits And Terms Of Incentives
To attract more developers, the concerned government ministry said prospective players will be given special rates on specific tax dues such as income tax, property tax and value-added tax (VAT). At the same time, these low-cost housing projects will be supported by infrastructure initiatives, which the national government will invest in.
This will provide better accessibility to the projects that in turn will increase the viability of project investments. The government is hoping that with solid support and promise of investment yields, many developers will rush in and take part in the mass housing program.
Also, the ministry indicated that property developers will need to submit project proposals by July 20 to qualify for the incentive program. For each plan to get the stamp of approval, it must consist of 100 housing units at the minimum and the project site must be located within a 20-kilometre radius of the capital.
It’s essential too that the housing project comes with specified green blueprint, meaning the site must have an adequate open space for plants and trees.
Most importantly, developers will need to set the unit prices at affordable levels, which Phnom Penh has defined between to be $15,000 and $30,000 apiece.
Beyond High-End Developments
Cambodia said the new thrust may sound ambitious but it is a way to convince property developers in the country to look beyond premium apartments and other pricey real estate developments. The mass housing projects will likely see the building of at least 50,000 affordable units per year for the Southeast Asian nation to meet the demands of an urbanisation that is on accelerated pace.
As consequence, it is expected that the low-cost housing projects will spur notable advances both in Cambodia’s quality of construction and home ownership, thus further boosting the already expanding national economy.