Tenkhleg Zuuch forecasts housing oversupply to exceed 5,400 households by 2021 www.zgm.mn
According to a study conducted by Tenkhleg Zuuch LLC, a total of 6,607 household accommodation were available in Ulaanbaatar as of 2018. Research institutions noted that the housing oversupply will prolong further due to low purchasing ability of households. While 24,773 household apartments were commissioned in 2013 when the eight percent mortgage loan was introduced; however, the number dropped to 12,277 households in 2017. As for 2018, about 12,000 household accommodation is expected to be built, of which 20 percent are already sold.
As of today, the average housing price stands at MNT 2.2 million per square meter in Ulaanbaatar, while the average purchasing power of households remains at MNT 1.2 million.
Tenkhleg Zuuch also expects housing demand to reach 33,102 in the next three years and supply to 38,514 households, creating 5,412 household housing surplus in the real estate market.
Housing price index fell by over 10 percent in 2015-2016 and slightly increased since the beginning of this year. The study also forecasted the average real estate prices to surge next year as the Government is planning to continue the eight percent mortgage program and to increase financial sources of the program.
Published Date:2018-12-27