Home Loans support Property Sector Growth
Home Loans support Property Sector Growth
Flowing credit from banks in Cambodia have been increasing the rise of buildings and property in the last decades.
The chief of purchasing and marketing of Borey Vimean Phnom Penh, Mrs. Chhay Sina, said banks have important roles to support construction and property in Cambodia. 90 percent of building buyers need lending money from the banks with the low interest around 8 percent a year. She added some buyers pay for building step by step and some need lending money with home loans from the banks.
Most of young building buyers need lending money from the banks, especially, new couples but old building buyers don’t need home loans from the banks. They use cash to buy it for their self or for the children.
Executive director of credit of ACLEDA, In Siphan, said home loans are not the first step of ACLEDA because its credit for property is only 7 percent and credit for repairing building is only 1 percent but buildings or property in Cambodia are increasing every year with 7000 credits from the banks with around 160 million dollars.
He said the credit of the bank is important for new couples to buy a house or flat so buildings are increasing every year. After economic crisis 2008, the bank of Cambodia allow all banks in Cambodia give only 15 percent of its total money to the lenders to buy property on home loans. But after that the bank of Cambodia allow all banks to gives lenders buying property over 15 percent.
In Siphan added that to be avoid of losing money or crisis, the bank is always careful for customers but sometimes the bank is wrong also for giving money to the home loans customers. So family and characteristic of customers are important. Consultant of national economic council, Dr. Mey Kalyan said if we buy food, we can eat immediately, but if we buy house or property, we can keep it for a long time and it isn’t easy to buy it and spend so much to buy it also. But we can sell and rent to get money easily.
Dr. Mey Kalyan added that the banks should be careful with customers but credit of the banks are important to increase building or property. The buildings or property projects always need money from the banks so banks are important for this field.
Director of finance industrial department of economic and finance ministry , Excellency Mey Vann said until now, he’s never seen crisis of buildings or property field but ministry is watching data project or planning of building or property to be avoid crisis. Excellency Mey Van added that it’s very important to control data, project or planning of building or property of the banks or companies in Cambodia.
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Source: News – Real Estate Cambodia