Gated communities, more popularly known as boreys, are a popular property choice among Cambodian buyers. Borey Uptown.
Cambodia’s mortgage applications soar by 50% in Q3 of 2020, according to a report by the Cambodia Credit Bureau. The outbreak of COVID-19 significantly slowed the surge of Cambodia’s property market. But as the year draws to a close, the sector is starting to see signs of recovery mainly fueled by local demand.
According to the Credit Bureau’s report, a total consumer loan balance of 9.11 billion USD was recorded as of September 2020. Around 51% or 4.6 billion USD is made up of mortgage applications followed by personal finance at 47.90% or 4.3 Billion USD. The loan balance from credit cards only made 0.58% or 52 Million USD.
The report also indicated that a total of 1.27 million loan account were made by Q3 2020. Mortgage accounts occupied 10.58% or ~135,000 accounts or while personal loans made up 81.12% or 1.03 million. Credit card loan accounts were recorded at 8.30% or ~105,000 of total credit accounts
Cambodia’s property market saw significant slowdowns in growth largely due to COVID-19 restricting international travel and disrupting global supply chains. These hindered the usual international clientele and disrupted the construction schedule of many developments, respectively. The decrease in foreign buyers especially hit large apartment sale prices resulting in as much as 30% median sale price decrease, according to Market Trends by Realestate.com.kh.
As the threat of COVID-19 persists, property developers have shifted to meeting the preferences of the local market. Affordable and Mid-Tier properties, quite popular among many local buyers, have seen sale prices largely remain stable throughout 2020, according to Market Trends by Realestate.com.kh.
As mortgage applications surge in Q3 2020, Cambodia’s property market may initially see signs of recovery thanks to an increase in local interest, particularly in the Affordable and Mid-Tier property segments.