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Logo of Phnom Penh Post newspaper Phnom Penh Post - Buying property by instalment on the increase

Buying property by instalment on the increase


Concept of buying homes by instalments in Cambodia is very attractive to those whom want to buy a house. Photograph: Hong Menea/Phnom Penh Post

The market for Khmer homebuyers purchasing property by instalments is booming, according to experts.

Keuk Narin, vice president of Asia Real Estate Cambodia, said the concept of buying homes by instalments in Cambodia is very attractive to those whom want to buy a house. Almost all housing projects that offer instalment purchases see good business, he said.

“Now around 60 per cent of housing buyers use the instalment purchase by deferred consideration directly to the borey investment, micro finance or bank.”

Adding this option can improve buying and selling, he also said.

Lay Rida, a member of the sales staff of Borey Peng Houth Investment Co, said the buyer is not the only one to profit; the company also gets profits from the instalment purchases. The company’s instalment service requires clients to pay one 40 per cent payment, then pay by instalment for 17 years with an interest rate for the loan at only 1.5 per cent per month.

“I don’t remember the number of clients on instalment purchase plans in our borey, I’m just aware that a lot of customers use the instalment purchase option,” she said.

The most popular housing building companies in Phnom Penh are Borey Peng Houth, Borey Pipup Thmai and Borey Vimean Phnom Penh, because the customers are aware of the quality and decoration of their buildings, Keuk Narin said.

In general, customers can buy their house by instalment purchase with the building housing investment and microfinance companies that get income at between 18 to 20 per cent per year, while banks have interest rates at 10 per cent. The customers have many options with this strategy, and this is also a good strategy for selling, he added.

Ouch Pysal, assistant president of Ly Hour Group, said purchasing on instalment helps his customers buy more houses, if they have the 40 per cent deposit.

“Both those who have enough money and those who lack money can buy houses. Now my company has around 80 per cent of our customers buying their houses by instalment,” he said.

His housing building prices range from $79,000 to $460,000, which customers can pay by instalment over 17 years, with an interest rate of 1 per cent per month.

So Phonnary, executive vice president of ACLEDA Bank, said the establishment of mortgages in Cambodia is increasing because of the increasing numbers of people who need houses.

At the end of September, the number of people taking out housing loans reached nearly 4,000 clients, with a total of $88 million owed, compared to the same time last year when the figure was $70 million, she said.

“Factors such as the growing population, and the growing economy are increasing the instalment loans as well.

“We allow customers to borrow for a housing purchase for 10 years with up to 70 per cent of the total housing price at 11 per cent per year.”

These loans improve the building and selling in Cambodia, and people are also able to purchase more, she added.

To contact the reporter on this story: Seun Son at



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