Mortgaging seen as solution for curbing air pollution in Ulaanbaatar
“Smoke Free Ulaanbaatar” forum has been organized with an aim to seek a solution through mortgage programs to help Ger district residents to move to apartments.
Mortgaging is seen as solution for curbing air pollution in Ulaanbaatar. “Smoke Free Ulaanbaatar” forum has been organized by Ministry of Construction and Urban development and Mongolian Mortgage Corporation with an aim to seek a solution through mortgage programs to help Ger district residents to move to apartments. Ger districts which houses 60 percent of Ulaanbaatar`s population is the main source of air pollution in the capital city. Air pollution increases in Ulaanbaatar during winter time due to ger district residents burn coal for heating and cooking. According to Dolgion Erdenebaatar, CEO of Bloomberg TV Mongolia, addressed «The air pollution in UB has exceeded the international air quality standards by 5-10 times. World health organization advises the children and elders to not leave the house and avoid physical labours if air quality index (AQI) exceeds 500. However, the AQI of Ulaanbaatar is fluctuating between 2-5 thousand. Housing is an effective measure to tackle air pollution. Therefore, the forum is covering three panel discussions of housing namely Clean air, Housing market and sustainable financing. Mongolian Marketing Consulting group`s 2016 study shows that housing demand is limited to only 33 thousand households who have the purchasing power to afford accommodation. Therefore, the main challenges is accommodating 200 thousand households at low cost. The study dictates that the majority can afford a housing price of MNT 1.3 million or around 500 us dollars per square meter: however, only 20 percent of construction companies can sell accommodation lower than MNT 1.5 million or more or less 600 dollars per square meter. Additionally, the representative of Mongolian Mortgage Corporation addressed that improving legal environment of financial instruments, such as insurance and securities, can increase access to loans and reduce housing prices.