Construction companies invest around MNT 2 trillion annually in housing. State budget allocates MNT 170 billion around 5 percent and Capital city budget allocates only MNT 70 billion in construction sector.
State Housing Corporation is planning to receive 2,595 housings in 2015, where it targets the same market as elders, young families, residents with disabilities and low-income households. Residents are sure to be included in the 8% mortgage loans. The establishment of the Capital city Housing Corporation directs its activities towards Ger Area Redevelopment and the residents are sure to be included in 8% mortgage loan program as well.
This in turn raises worries if private constrcution companies are to be left outside the possibilities to be included in the 8% mortgage loan program.
As Mayor E.Bat-Uul concerned over the plunging sales of the housings and warns of the potential distressed construction sites.
Moreover, the question whether UB city is to continue to construct 9-15 storey apartments or to focus more on private house constructions.
Mongolian Banking Association sees more attractive to focus more on private houses and suggests new financing tools as 9% mortgage loans. The idea in turn can serve as solution for many problems that UB city is facing starting with fighting with smoke. As they see, although state tries to accomodate Ger Area residents into housings there are another migrants to occupy the freed Ger Area. In this regard, some suggest investing in infrastructure to current ger Areas and support the households to build houses, therefore reducing the expansion of Ger Areas.
In addition, according to the survey there are 54,000 residents in Ger Area able to make the monthly payments for the housing.
Construction companies invest around MNT 2 trillion annually in housing. State budget allocates MNT 170 billion around 5 percent and Capital city budget allocates only MNT 70 billion in construction sector.
State Housing Corporation is planning to receive 2,595 housings in 2015, where it targets the same market as elders, young families, residents with disabilities and low-income households. Residents are sure to be included in the 8% mortgage loans. The establishment of the Capital city Housing Corporation directs its activities towards Ger Area Redevelopment and the residents are sure to be included in 8% mortgage loan program as well.
This in turn raises worries if private constrcution companies are to be left outside the possibilities to be included in the 8% mortgage loan program.
As Mayor E.Bat-Uul concerned over the plunging sales of the housings and warns of the potential distressed construction sites.
Moreover, the question whether UB city is to continue to construct 9-15 storey apartments or to focus more on private house constructions.
Mongolian Banking Association sees more attractive to focus more on private houses and suggests new financing tools as 9% mortgage loans. The idea in turn can serve as solution for many problems that UB city is facing starting with fighting with smoke. As they see, although state tries to accomodate Ger Area residents into housings there are another migrants to occupy the freed Ger Area. In this regard, some suggest investing in infrastructure to current ger Areas and support the households to build houses, therefore reducing the expansion of Ger Areas.
In addition, according to the survey there are 54,000 residents in Ger Area able to make the monthly payments for the housing.