23.8% of the entire population and 40% of the Ulaanbaatarers live in apartments with heating and running water. Therefore, the need for more affordable apartments for regular citizens is vital for improving quality of life. The new riches have been investing into the real-estate sector instead of investing in production, services industries or as savings in banks shooting up the price for per square meter. Since 2005, the average apartment price for per square meter in Ulaanbaatar quadrupled from 350 – 500K MNT to 1.6 – 2 million MNT.
One of the main missions for the government is to solve air pollution by solving housing problems. The cabinet charged the Minister of Economic Development and Minister of Construction and Urban Development to organize a 8% + 1% annual rate 20 year mortgages to the qualified population. The Prime Minister Mr. Altankhuyag stated that the mortgage will not be only limited to the public servants, but to all those who have stable income.
Memorandum of Understanding was signed between the Bank of Mongolia and the government on mortgage policy.
We suggested our housing problem solution in the previous editorial comment here.