RPPI change gets back to positive area in June
 

The monthly change of the Residential Property Price Index (RPPI) jumped back to 0.4 percent in the positive area for the first time in June after the index had changed in the negative area for two months in a row in April and May 2022 by -1.6 percent and -0.8 percent respectively, according to the latest report of the National Bank of Cambodia (NBC).

The Economic and Monetary Statistics released by NBC on Monday shows that RPPI has risen to 109 point in June 2022 from 108.6 point in May for both Phnom Penh and provinces, but the index for Phnom Penh has surged to 110.4 point in June from 109.8 point in May, while the index for provinces has slightly fallen to 100.3 point from 100.4 point.

However, the annual changes in RPPI were all still negative in June this year. Compared to the same period last year, the main index has fallen by 3.9 percent in June from 2.9 percent in May, while the index for Phnom Penh and provinces have slipped by 3.7 percent and 3.9 percent respectively in June after they had fallen by 2.8 percent and 2 percent respectively in May, according to the statistic.

The house price index helps in calculating the value of an asset in the real estate market, said Chea Serey, citing that for the banking sector, the house price index has been useful in providing loans to its customers, including collateral, such as land or houses.

“The introduction of the house price index is another step and achievement in compiling economic and financial statistics to serve the analysis and evaluation of economic processes, especially in real estate and construction sectors,” Serey said.

“When clients deposit the house and land as collateral, and if it is not possible to evaluate them accurately at the time of providing loans, there may be risks,” she said. “The housing price index is an important indicator in tracking the development of the real estate and housing sector, which has been booming over the past two decades, and providing statistical reports is important in updating the banking sector,” Lina said.

NBC and the National Institute of Statistics (NIS) launched the residential property price index for the real estate sector, which will help evaluate residential properties in June this year in the presence of Chea Serey, Director General of the National Bank of Cambodia and Hang Lina, Director-General of the National Institute of Statistics and representatives from the sector.