Home Loan in Cambodia Increases by 37% in 2021
Credit for purchasing home in Cambodia increased by 37 percent in 2021, a sign of growing residential demand among Cambodian people, according to an annual report by the National Bank of Cambodia released in January 2022.
In 2021, total credit from banks to consumers rose by 20 percent, equivalent to $36,8 billion dollars with 1.2 million accounts. Of all loans allocated to various economic sectors, home loan represents 13 percent – an increase of 37 percent year-on year.
Construction sector represents 9,7 percent, increasing 30% and real estate 8,4 percent, increasing 23% in 2021 compared to the same period last year.
The latest report by CBRE Cambodia shows that of all construction projects in Cambodia, residential project represents more than half – an indication that residential demand in the kingdom in 2021 remains high.
According to the CBRE report, 4 condo projects comprising 1,000 units and 62 landed property projects comprising 20,000 units were launched in 2021 and new condo supply is expected to reach over 13,000 units in 2022 while more than 50 landed property projects will also be added to the market this year.
In an interview with local media, Mr. Doeun Sopheap, Chief Credit Officer of J Trust Royal Bank, said credit for purchasing home in Cambodia have increased over the last few years because demand for home remains high in the kingdom.
He added that in order to buy their dream home, customers need to have at least 20-30 percent of the total home price and then they can borrow the remaining amount of money from banks to purchase their favorite one from developers.