Cambodian Banks Cut Interest Rates to 8% to Revive Real Estate Sector

• 27 December 2024
• Local News
• 1049 Views

To boost Cambodia’s struggling real estate sector, leading banking and financial institutions have announced a significant reduction in interest rates for real estate loans, cutting rates to 8% annually.

This decision, aimed at reducing financial burdens on homebuyers and revitalizing the housing market, follows a Construction and Real Estate Working Group “D” meeting chaired by HE Say Sam Al, Deputy Prime Minister and Minister of Land Management, Urban Planning, and Construction, on 20 December 2024.

The meeting, held under the Royal Government-Private Forum, brought together representatives from prominent banks, including ACLEDA Bank, ABA Bank, PPCB Bank, J Trust Bank, RHB Bank, First Commercial Bank, FTB Bank, Agri-Bank, SBI LY HOUR Bank, alongside the Developers Association of Cambodia. During the discussions, stakeholders agreed to implement lower-interest loans as a strategy to address ongoing challenges in the real estate sector, particularly the Borey housing market.

HE Says Sam Al emphasized the importance of government and private sector collaboration in overcoming these hurdles. Experts believe that this initiative will make it easier for homebuyers to meet their obligations and provide a foundation for resolving long-standing conflicts in the sector.

The MLMUPC confirmed that further consultations will be held within the Construction and Real Estate Working Group “D” framework to effectively refine and implement the policy. These efforts underline the government’s commitment to fostering a secure and sustainable real estate environment, which plays a vital role in job creation and improving citizens’ quality of life.

This proactive measure represents a crucial step toward stabilizing Cambodia’s real estate market and a conflict-free environment, ensuring long-term growth for the banking, financial, and development sectors. As the nation navigates economic challenges, this initiative reflects a renewed optimism for the future of real estate in Cambodia.

• Policy and Strategy