Demand for real estate remains stable
Demand for real estate remains stable
Despite the global spread of the COVID-19 pandemic and the negative impact it has had on economic growth. The demand for residential units and real estate in Cambodia has continued to go in the right direction this year.
The quarterly report of the Credit Bureau of Cambodia (CBC) shows that loans in the real estate sector reached $4.6 billion by the end of September, a significant increase from $3.9 billion at the end of 2019.
The report shows that mortgage loans are part of the general loans recorded by the CBC and as of the first nine months of 2020, loans provided by banks and microfinance institutions reached $9.11 billion.
General loans include personal loans, credit cards and mortgage loans.
Senior Director of real estate firm CBRE Cambodia James Hodge said that it is encouraging to hear the news from the CBC of increased activity in the mortgage lending markets.
“Wider use of mortgage finance at this time points to an underlying strength in the residential sector and reveals a belief from buyers in the long-term prospects of real estate as an investment asset,” he noted.
“Because mortgage financing is predominantly utilised by domestic buyers, these numbers also indicate increasing confidence and activity from local buyers, which is a trend that has been clear from our track of market activity during the course of 2020.”
According to Cambodia’s Economic Trends report of the Ministry of Economy and Finance, there were 2,819 residential projects, accounting for 84 percent of the total 3,350 construction projects, in the first eight months of this year.
The report underlined that residential demand in Cambodia continues to grow even though the COVID-19 crisis has weakened other economic bases.
One investment that seems to be popular in the capital this year is an investment in The Palms, a brand-new development in the heart of the capital that combines luxurious living, convenience and a touch of nature.
Aptly called an “organic development,” The Palms sits on prime land overlooking the Mekong River, a majestic body of water that runs through Phnom Penh and surrounding areas.
The Palms features more than 200 cluster homes and luxury villas that give residents picture-perfect views of the river.
The resort villas, which occupy a floor area of between 377 square metres (sq m) and 1,086 sq m, combine elegant exteriors and well-appointed interiors found nowhere else in the capital. The villas offer high-end living at its best.
Aside from the exclusive living space, the residents are also granted access to a wide variety of amenities, including an artificial beach, a swimming pool, one-of-a-kind hydrotherapy pools, a water playground and a barbecue area.
