Local demand fuels Cambodia’s real estate market, increasing mortgage applications by 50 percent in the third quarter of 2020
Alike everywhere else in the world, Cambodia’s property market took a downturn after being hit by the COVID-19 pandemic. However, mortgage applications spiked by 50 percent in the third quarter of 2020 due to market recovery driven by local demand, reported realestate.com.kh, citing data from the Cambodia Credit Bureau.
Growth in Cambodia’s real estate market slowed down significantly due to the COVID-19 pandemic, as global supply chains were disrupted, including international travels. This halted the customary expenditure from international investors and many development constructions had to reschedule.
Consequently, prices of large apartment dropped immensely, as much as 30 percent, due to the cutback of foreign clients.
As prices remained steady all through 2020, affordable and mid-tier properties became increasingly popular among Cambodians, shifting property developers to focus on meeting local preferences. Boreys, or gated communities, are also in high demand among local buyers.
The Credit Bureau reported that a total of USD9.11 billion was written down under consumer loans as of September 2020. An estimated USD4.6 billion (51 percent) is comprised of mortgage applications, while around USD4.3 billion (47.9 percent) made up personal finance. Only USD52 million (0.58 percent) was from credit card loans. The report also stated that by Q3 2020, 1.27 million loan accounts were made, in which 10.58 percent of those were mortgage accounts.
Cambodia’s real estate market is beginning to notice signs of recovery, as mortgage applications and local interests increase.
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