Mortgages for purchasing homes in Cambodia used to be almost impossible to obtain only 10 years ago; now this has become one of the most popular ways to aford a house in the kingdom. The numbers of mortgage loans from ACLEDA and other banks increased by 33 per cent in the last three-month period, compared to the same period last year, according to the data that Post Property obtained from ACLEDA.
The data shows that in the first three months of this year there were 3,591 mortgages awarded, with a total mortgage value of up to $88 million, while in 2011 the number reached 2,700, with a total value of only $70 million.
So Phonnary, Executive vice president of ACLEDA, said, “At the moment, Cambodia is seeing an increase in population, there is a political stability, the economy is growing fast, and there are a large bulk of newly-wed couples who are pushing the home demands high.” She added that this increase does not only result in the bank sector blossoming, but also in Cambodia’s construction investments, will more resemable a developed country.
“The increase in the domestic property market contributes to the economic growth, as we see that most of the mortgage seekers are medium-income families, with an average monthly salary of $500,” she said.
The Head of Cambodia’s Central Bank, Ngoun Sokha, said though the National Bank does not have the accounts of the home mortgage awardees available at this time, she could confirm that the number is higher than last year.
“Cambodia’s whole economic foundation is recovering following the 2008 and 2009 economic crisis. This growth makes people’s lives easier, so they start thinking about buying houses through bank mortgages,” she said.
The overall mortgages for this year’s first two months climbed 28 per cent, compared to the same period in 2011, which saw only 20 per cent, she said, adding that mortgage approvals are subject to the bank’s evaluation.
VMC Manager Dith Channa said that house sales in this first three months increased by 60 per cent, compared to the same period last year, which saw only 40 per cent growth. The house development projects, he added, also added momentum, as some projects were extended, while other builders began new projects.
Most residents, he said, can afford a flat with a value from 80,000 to $ US 120,000 around Phnom Penh city, but the number drops in other provinces.
Cambodia University Economics Lecturer Chheng Kimlong said the number of mortgage seekers has significantly increased recently. “I’ve noticed that a number of private banks are increasing their mortgage operations,” he said, adding that the bank sector has been growing in the last 10 years, and this is a positive sign for the Kingdom’s economic growth.
The regional economy, he added, is recovering, so that people are gaining confidence and beginning to re-invest in property for profit. He added that if this economic recovery remains strong, the demands of residential and business property leasing will also climb.
So Phonnary said that there would be more growth in the next three-month period if the economy maintains its growth. She continued such a large amount of home mortgages gives people greater opportunities to own their home, rather than spending their long-term savings or renting houses.