Government?s 2008 review: housing construction

ASTANA. January 9. KAZINFORM –What were the main priorities in the activity of the Government in 2008? What are the main indices of social and economic development of the country in this period? Kazinform offers its readers information on development in the sphere of housing construction.

The total area of housing commissioned in Jan.-Nov. 2008 is 5.8 mln sq m that comprises up to 102.4% to11 months of 2007. It is necessary to note that there is an upward tendency in the housing construction. So, in comparison with the analogous period of 2007, 92% of housing was commissioned over seven months of 2008, 93% ? over 8 months, 96% - over 9 months and 101.7% - over10 months. KZT 7.7 bln were allocated to akimats for construction of rental housing. KZT 7.5 bln or 98% out of these funds have already been disbursed. KZT 6.4 bln were allotted to akimat of Astana city for construction of housing for public servants. The means were completely disbursed. KZT 7.7 bln were allocated to the akimats for construction of housing for the workers of 100 schools and 100 hospitals that under construction today. KZT 6.4 bln or 84% our of this amount have already been disbursed. Aktobe, Atyrau, Karaganda, Kyzylorda regions and Almaty city fully disbursed allocated means. In whole, repeated disbursement performed by the local executive bodies made up 66% in 2006. 383.6 thousand sq m of rental housing or 111% out of the planned 344.4 thousand sq m were commissioned at the expense of these means. Taking into account the current situation in the financial sector the Government adopted a resolution on amendments to the State Program of Housing Construction in the Republic of Kazakhstan for 2008-2010. The first. It was suggested to invest KZT 15 bln in the increase of rental housing construction volumes. This will let put into operation 3000 rental apartments (250.8 thousand sq m). Totally 730.6 thousand sq m or 8900 apartments (12% of the demand) of rental housing will be commissioned. The second. Akimats carry out construction of rental and mortgage housing at the expense of the republican budget in the context of the State Program. The third. The limits on the cost of construction of 1 sq m of rental and mortgage housing were canceled. Herein, the cost of mortgage housing is unchanged ? KZT 56 515 for 1 sq m. The fourth. Concessional lending for citizens purchasing apartments built within the framework of the previous State Program for 2005-2007was extended through Zhilstroysberbank. The fifth. Maximum total area of mortgage housing was increased from 80 sq m to 120 sq m. The Government took a package of measures on budget financing of shared construction to support interest holders. KZT 95 bln were allocated for ?SamrukKazyna? National Welfare Fund (KZT 48.8 bln for Astana and KZT 46.2 bln for Almaty). KZT 63.7 bln were allotted to the developers from the second-tier banks: - KZT 40.7 bln for 37 objects in Astana. This will allow to protect rights of 12 343 interest holders. - KZT 22.9 bln for 17 objects in Almaty city for protection of the rights of 2 899 interest holders. The rest amount will be allocated in proportion to disbursement and preparation of loan agreements. 7 objects (1899 interest holders) are commissioned in Astana for today, 3 housing complexes (414 interest holders) in Almaty city. The construction of 11 objects in Astana (2515 interest holders) and 7 objects in Almaty (687 interest holders) is expected to be completed till the end of the year. The construction of 65 objects (10 099 interest holders) is completed at the expense of the interest holders. 17 houses out of them are expected to be completed till the end of the current year to solve problems of 2885 interets holders. KZT 41 bln was allocated in Astana to purchase 6 thousand apartments in the objects of shared construction including KZT 21.5 bln in 2008, out of which KZT 18 bln was disbursed. Agreements on buy-out of 6203 apartments in 46 houses (6014 equity holders) were concluded. 8 out of 46 houses will be commissioned till the end of the year. 934 interest holders participate in their construction. KZT 17.2 bln in Astana city and KZT 10 bln in Almaty city were allocated from the reserve of the Government to complete construction of problem objects. Due to the Government?s support about 3 thousand interest holders were planned to receive apartments till the end of 2008. The rest 38 thousand interest holders will receive flats in 2009. The Join Action Plan of the Government, National Bank and Financial Supervision Agnecy on stabilization of economy and financial system for 2009-2010 is to deal with the problems in the real estate market. The Law ?On shared participation in housing construction? came into force on January 1, 2007. The working group of the Kazakh Parliament?s Majilis works over the amendments to this law providing protection increase of interest holders from 16 to 21. 16 new enterprises of construction industry were expected to be put into operation till the end of 2008. Production of construction materials over the period of January-September 2008 amounted to KZT 288.04 bln. Import of construction materials over January-September 2008 amounted to USD 1.33 bln. The volume of investments to development of construction material production made up KZT 72.8 bln.