[PHNOM PENH POST]
BRICK prices jumped about 32 percent on last month due to increased
demand, though prices still sit bellow highs seen before the financial
crisis, brick makers said yesterday.
Lots of 10,000 bricks now
trade for US$520, up from last month’s figure of $350, with excess
demand caused by improvement in the construction industry, officials at
brick manufacturers Handicraft Produce Bricks said yesterday.
At
the height of the construction boom in 2008, prices hit $1,300 for
10,000 bricks, according to Sor Chanthy, owner of the Kandal province
firm.
“Even though we are in the rainy season, activity on
construction sites continues, especially on individual home and housing
development projects for sale.”
She added that the rise in prices was in line with demand within the construction sector.
Although
sector growth is recognised as being beneficial to the cost of bricks,
Star Diamond Brick Factory Director Lay Seng Hoeun cited a lack of
labour as an obstacle to the industry’s progression.
“We are so
happy with the high [brick] prices, but now we cannot keep up with
customer’s demands, due to a lack of workers,” he said.
“It is
very difficult to find people working in brick making” in Cambodia, due
to an increase in migration to neighbouring countries, such as Thailand,
Malaysia and South Korea, in order to find work, he claimed.
Producers also expect prices to decrease later in the year due to growth in Vietnamese bricks imports, Lay Seng Hoeun said.
“We are very concerned with Vietnam’s brick imports into the Kingdom, and expect prices to go down in the coming months.”
The Kandal province manufacturer presently sells lots for between $460 and $510, up from $330 and $360 on average in May.
Teng
Rity, Marketing Manager at the $600 million development Grand Phnom
Penh International City, said yesterday that construction material
prices had risen since the beginning of the year.
“The prices are up,” he said. “It slightly affects our project, but it is not a big concern for us.”
There
are many construction projects still under way, said Director of
Construction Department of the Ministry of Land Management, Urban
Planning and Construction Lao Tip Seiha, who added that “there has been
increased activity in the sector this year”.
Data released by the
Ministry of Land Management, Urban Planning and Construction last week
shows officials approved 696 construction projects nationwide worth a
combined estimate of $482 million in the first four months of 2011.
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