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1 million MNT per square meter housing ‘possible’ with government support, say contractors

By B.Khash-Erdene

With the construction season about to begin, the Shine Oron Suuts (New Housing) 2013 Housing Exhibition was held at the Mongolian Trade Union’s Cultural Palace. The exhibition was organized by the Ministry of Construction and Urban Development and other affiliated organizations.

Around 50 construction companies participated in the exhibition. Some of the companies informed that their housing projects will be completed by the second or third season of this year, while others said theirs were already completed and they were taking the last of their orders.

The construction companies participating in the event said their housing projects were valued at one to three million MNT per square meter but most were above 1.3 million MNT. The companies said they were not able to reduce their prices and that if the government were to sort out the infrastructure issues on the land, it would be possible to distribute houses and apartments at a price lower than one million MNT per square meter.

Most of the people who came to the exhibition were young couples hoping to find an affordable place to live. They were mainly interested in housing mortgages.

If a household that earns around one million MNT per month purchases a 40-square meter, one-bedroom apartment for 1.4 million MNT per square meter, they would have to deposit an initial 10 percent, which is worth a total of 5,001,000 MNT. The rest could be paid within 15 years or 700,000 MNT per month.

Many who came to the exhibition were interested in this exact deal. One of them, A.Gerelt-Od, said, “I live with my husband and two children. We currently rent a house in Bayankhoshuu. Instead of spending money on rent, my husband and I want to use our savings to purchase a home and get a mortgage. We work in a state organization, and we have to take our children to day care in the morning and pick them up in the evening. On top of this, we have to buy wood and coal for heating, and purchase water which are not easy tasks with our workload. I only just heard about this exhibition and came to see if there were any options for us. The prices are a little high.”

The “Young Household Housing” designed for new families will be available this summer. It offers around 50 apartments in six-storey buildings. The apartments will range from 39, 42, 45, and 65 square meters which will be sold for 1.3 to 1.4 million MNT per square meter. The apartments are located near Sansar’s Mega Store in the central area. They were modern buildings with customizable layouts and younger households seem very interested in the project.

One of the many services and features of the exhibition included a tour of the housing being erected. The tour cost 3,000 MNT and seven housing projects including Iveel Town, SumberOrd Town, Art-12, SaikhanUrguu, OchirKhotkhon, Golden Park, and Deluxe Marshal Village were exhibited directly so that participants could visit the sight and judge for themselves the quality of the apartments.

Moni-Iveel Limited’s Iveel Town, in particular, which consists of three 12-storey apartments is located in Khan-Uul District near the Office of the Ulaanbaatar Governor. The company informed the public that the first apartment was already transferred to the State Committee and was available to them through a loan with the Trade and Development Bank. They offered 46 to 75 square meter, one- to three-bedroom apartments at a price of 1.8 million MNT per square meter. The visitors were impressed with its quiet yet central location. The company offered to furnish the kitchen cupboard and window panes free of charge.

DTM Constructions’ housing for 144 households ranged from 34 to 78 square meters, one- to three-bedroom apartments. The buildings utilize European technology and are located close to the 5th and 50th general schools, district hospital, and other service centers such as Tengis Cinema. The company priced their apartments from 1.9 to 2.5 million MNT per square meter.

Golden Park and Deluxe Marshal Village offered luxury homes. The visitors said that although the space is small, the price is high. All the housing is equipped with contemporarily designed doors, floors, and windows, as well as modern elevators.

The Housing Exhibition also displayed luxury summer houses ranging from a total price of 120 to 140 million MNT. Only five to six houses of the housing project for 60 households located in Yrgait Alley were available for purchase. The contractors said the houses were built in accordance with the UN’s Construction and Urban Development Organization’s environmental requirements and that the houses for 120 million MNT were all sold out. Each house covers 0.7 hectares of land to itself and is built near garages, shops, playgrounds, and other service centers.

The Mongolian Lawyer’s Association also partook in the exhibition offering free legal advice. The association said many people lose their property and suffer from damages associated with such a loss because they had not examined their contracts thoroughly. They said homeowners who have contracts with construction companies are able to investigate the construction process and make any custom changes to their homes. The lawyers advised purchasers to pay extra attention to the contract’s clause of permit transference.

Short URL: http://ubpost.mongolnews.mn/?p=3493

Posted by on Apr 2 2013. Filed under Business & Economics, Community. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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