Mortgage Loans Surpass US$6.6 Billion Milestone by June 2023

• 3 August 2023
• Local News
• 1498 Views

Cambodia’s real estate landscape is experiencing an impressive resurgence as mortgage loans from banks surged beyond the US$6.6 billion mark by June 2023, marking a substantial growth of 17.5% when compared to the corresponding period in the previous year.

A recent report released by the National Bank of Cambodia on Monday 31 July unveiled the robust performance of the mortgage market, with mortgage loans contributing an impressive 14.5% to the substantial total outstanding loan portfolio, valued at US$45.8 billion.

Within this thriving landscape, loans designated for real estate trading showcased remarkable growth, surpassing US$4.3 billion and enjoying an upswing of 13.6% over the previous year. Similarly, loans catering to the construction sector recorded a noteworthy growth of 8.9%, amassing a total value of US$4.1 billion, further underscoring the nation’s enduring commitment to infrastructural expansion, according to the report.

Microfinance institutions also play a pivotal role in this upward trajectory, contributing significantly to the construction sector. Loans allocated for this sector totalled US$426 million, reflecting a robust 14% growth over the past year. This notable increase amounts to 4.4% of the total outstanding loan portfolio of the microfinance institutions, which collectively total US$9.7 billion.

In the midst of this dynamic environment, Ms An Thida, a distinguished expert in the realm of real estate, elucidated the unique advantage that buyers in Cambodia currently enjoy. Despite a backdrop of market adjustments, the prevailing trend has paved the way for buyers to seize remarkable opportunities, as properties are presented at prices that stand below the market value. This strategic positioning provides astute investors with a rare opening to capitalize on the property market’s potential for profitable investment. (Read more)

• Analysis
• Economy and Finance