Statistics show that the number of the new housings is increasing, but as the economy is down there is not much demand for the housing. For residents the main drawback for applying oe the mortage loans is the lack of the 30 percent deposit readily on their hands. While for the construction companies they face difficulty on selling the housing bearing the losses.
Lately the initiative on reducing of the 30 percent deposit is being discussed by the Ministry of the Construction and Urban Development and the Deputy Minister G.Baigalmaa is giving us some insights on this matter.
-Initiative to reduce the deposit amount for the 8 percent mortgage loan is being discussed at the moment, more on this?
-WIth the start of the mortgage loan program residents with the 30 percent deposit available at their hands, have already been included in the program. Now we are revising the mortgage loan program to involve residents with less possibilities and reduce the requirement of 30 percent deposit.
Initially the mortgage program was being discussed to have the deposit requirement of 10-30 percent, but the Bank of Mongolia after the negotiations with the commercial banks has come up with the strict 30 percent of deposit requirement. Therefore, there is possibility to reduce the deposit amount to 10-20 percent and the talks are being done at the moment.
-Many say that although there is enough supply of the housings demand is lacking on the construction market?
-According to the data of last five years 2013 has seen the most growth in the construction sector and 12-13 thousand housings have been commencing every year, while 25 thousand housings have commenced last year alone.
Studies show that the economic downturn is the main reason for the lack of the cash on hands of the residents, which in turn drives the demand on housing down.
Infrastructure for the new housing projects is to be solved with local facilities.
-How many housings are to be commenced this year?
-Total of 30 thousand housings are to be ready in 2015, and this number includes the 7000 from the last year. There are many residents to be willing to move into housings in the city as well as in the rural areas. There is possibility to construct 1000 housings in each aimag by 2016.
-Infrastructure for those housings needs to be solved. What is the Ministry policy on infrastructure development for the new residential housings?
-Past two years the city expantion plan provisioned expansion towards Yarmag, Nisekh and Bayangol hills areas to the west of the city. Therefore the city had expanded its infrastructure towards those areas delivering water supply, energy and sewage and sanitation services. Buyant-Ukhaa sanitation facility capacity has been doubled. Most pressing issue currently is the sewage and sanitation services, therefore we are constrcuting the additional sanitation facility with the capacity of 20 thousand cubic meters.
Infrastructure for the new housing projects is to be solved with local facilities. Technology used currently in the construction sector is delivering advanced techniques and technologies, which enable us to solve the issues with ease and less impact on the environment, such as use of the renewable energy sources.
We are aware that the energy and heating supply is the biggest problem nowadays and we are working on the possible solutions. This issue is also to be addressed by the Ministry of Energy. Last year we have started the development of the US 15 power and heating station at the Amgalan, which is to commence this year and and allow the expansion at the eastern part of the city.
Statistics show that the number of the new housings is increasing, but as the economy is down there is not much demand for the housing. For residents the main drawback for applying oe the mortage loans is the lack of the 30 percent deposit readily on their hands. While for the construction companies they face difficulty on selling the housing bearing the losses.
Lately the initiative on reducing of the 30 percent deposit is being discussed by the Ministry of the Construction and Urban Development and the Deputy Minister G.Baigalmaa is giving us some insights on this matter.
-Initiative to reduce the deposit amount for the 8 percent mortgage loan is being discussed at the moment, more on this?
-WIth the start of the mortgage loan program residents with the 30 percent deposit available at their hands, have already been included in the program. Now we are revising the mortgage loan program to involve residents with less possibilities and reduce the requirement of 30 percent deposit.
Initially the mortgage program was being discussed to have the deposit requirement of 10-30 percent, but the Bank of Mongolia after the negotiations with the commercial banks has come up with the strict 30 percent of deposit requirement. Therefore, there is possibility to reduce the deposit amount to 10-20 percent and the talks are being done at the moment.
-Many say that although there is enough supply of the housings demand is lacking on the construction market?
-According to the data of last five years 2013 has seen the most growth in the construction sector and 12-13 thousand housings have been commencing every year, while 25 thousand housings have commenced last year alone.
Studies show that the economic downturn is the main reason for the lack of the cash on hands of the residents, which in turn drives the demand on housing down.
Infrastructure for the new housing projects is to be solved with local facilities.
-How many housings are to be commenced this year?
-Total of 30 thousand housings are to be ready in 2015, and this number includes the 7000 from the last year. There are many residents to be willing to move into housings in the city as well as in the rural areas. There is possibility to construct 1000 housings in each aimag by 2016.
-Infrastructure for those housings needs to be solved. What is the Ministry policy on infrastructure development for the new residential housings?
-Past two years the city expantion plan provisioned expansion towards Yarmag, Nisekh and Bayangol hills areas to the west of the city. Therefore the city had expanded its infrastructure towards those areas delivering water supply, energy and sewage and sanitation services. Buyant-Ukhaa sanitation facility capacity has been doubled. Most pressing issue currently is the sewage and sanitation services, therefore we are constrcuting the additional sanitation facility with the capacity of 20 thousand cubic meters.
Infrastructure for the new housing projects is to be solved with local facilities. Technology used currently in the construction sector is delivering advanced techniques and technologies, which enable us to solve the issues with ease and less impact on the environment, such as use of the renewable energy sources.
We are aware that the energy and heating supply is the biggest problem nowadays and we are working on the possible solutions. This issue is also to be addressed by the Ministry of Energy. Last year we have started the development of the US 15 power and heating station at the Amgalan, which is to commence this year and and allow the expansion at the eastern part of the city.