27/02/2018
Ministry of Construction Submits Public Housing Plan with JICA Loan
The Ministry of Construction sought approval for a public housing project using a loan from JICA ¥15 million (yen) to enable citizens to have their own apartments at Union Parliament meeting on February 22.
Presently, the Ministry’s Department of Construction and Urban Development has been selling apartments under an installment program to people with regular income. The JICA’s loan will enable the department to ease some requirements such as reducing 30 percent down payments to 20 percent, and relaxing loan terms from 10 years to 15 years, according to the ministry’s explanation at the parliament,
U Kyaw Lin, Deputy Minister for the Construction, said that if the parliament approves JICA’s loan, then the ministry can implement a public housing program where people with K300,000 income, and K500,000 in hand can buy an apartment.
‘‘I humbly ask the parliament to approve JICA’s ¥15 million loan to enable citizen the ability to own an apartment under this long term installment payment,’’ U Kyaw Lin implored.
The annual interest rate of loans with 10 years and 30 years payment is 0.01 percent.
U Kyaw Lin explained the Parliament that the loan will improve housing supply, which in effect will help citizens own apartments, and reduce the need for a fund from the state.
The government is planning to implement 158 housing projects with 4,550 apartments in Yangon, Ayeyarwaddy, Magway and Sagaing in 2017-2018 Fiscal Year, and has further plans for implementing 209 housing developments with 5,908 apartments in 2018-2019 Fiscal Year, and finally another 40 housing projects with 1,456 in 2019-2020 Fiscal Year across the country.
The size of the lower priced apartments will be 300 to 800 square feet. The next price level apartments will be 800 to 1200 square feet. The price will vary from K10 million to K50 million based on the area.
The Construction and Housing Development Bank (CHDB) will grant loans to buyers at first, followed by other private banks later on.
‘‘Down Payments will be 20 percent of the value of the apartment, and the payment plan is 10 to 15 years with the interest rate of 8.5 percent.
In first phase, CHDB bank will provide loans for buyers of low cost and affordable housing developed by the fund of the Department of Urban and Housing Development.
In second phase, other private banks in addition to CHDB will provide loans for the housings developed using Japanese technology.
In third phase, other private banks will provide loans for housings developed by private construction.
