20 January 2018, 10:51
The first year of the Nurly Zher state program, initiated by the President Nursultan Nazarbayev, has been completed in Kazakhstan. It's time to summarize the first results, look back, carefully study the mistakes made and recognize the successes.
As the developers of the Program note, the main goal of the state housing policy at the new stage of development of Kazakhstan is to reduce the state's participation in housing construction.
In the Nurly Zher Program, the emphasis was shifted from direct financing to non-budgetary. Mechanisms of the Programs are aimed at attracting private investment, supporting businesses and offering affordable financial instruments to the public, such as mortgage lending, housing loans.
This is a long-term Program — it will be realized within 15 years. Until 2031, it is expected to build housing for 1.5 million families in the country. Annually, about 100 000 lucky beggars will celebrate housewarming.
According to the preliminary data of the Committee on Statistics, in January-December 2017, 11.2 million m² of the total area of housing was put into operation due to all sources of financing, which is 106.2% compared to the same period in 2016. The percentage of housing construction to the annual plan was 110.4% (plan – 10.1 million m²).
Most of the housing — 9.4 thousand m² (83.9%) was commissioned by private developers and the population. A total of 100,812 housing units were commissioned in the country, of which 27,908 individual houses (4.3 million m²) and 72,904 housing units (6.9 million m²).
The increase in the volume of housing construction is observed in 15 regions of the republic. A significant growth rate of housing construction in comparison with the previous year was recorded in WKR (by 42.4%), SKR (36.2%), Kostanay (35.6%), Pavlodar (31.2%), Aktobe (28.5% ), Zhambyl (24.9%), NKR (21.8%), Mangistau (17.6%), Akmola (16.9%), Kyzylorda (12.6%).
979.8 billion tenge of investments were directed to housing construction or 111.6% to the same period of 2016, including 153.9 billion tenge of state investments. The volume of commissioning at the expence of state investments at the plan of 1.43 million m² (24 159 apartments) amounted to 1.49 million m² (25 095 apartments) or 104.4% to the plan.
Overall, the results of the first year of the Program implementation showed good results. The planned indicators for the introduction of credit housing (102.6% against the plan of 986.3 thousand m²) and commercial housing (104.7% against the plan of 291.1 thousand m²) were exceeded. There is a tendency to increase the input of multi-apartment housing in comparison with IHC.
On the instruction of the Head of State, given at the meeting on socio-economic development of the regions and implementation of the development programs of 18.08.2017, in order to actively involve second-tier banks (STB) and improve the efficiency of its implementation in general, amendments and additions to the Program were developed and approved by the decree of the Government of 23.10.2017, No. 674. The first changes included the actualization of the Program's mechanisms.
By the Decree of the Government of the Republic of Kazakhstan of 26.12.2017, No. 877, new changes and additions were made to the Program — a section was added that regulates the norms for the implementation of the financing mechanism for the completion of problem housing projects in Astana. With this purpose, Baiterek Development JSC is granted the right to lend to an organization that will complete the construction of shared facilities at the expense of proceeds from the sale of credit housing for the amount of 40 billion tenge (in 2018 – 20 billion tenge, in 2019 – 20 billion tenge), and also private investment. Lending will be carried out on terms of payment, urgency and repayment.
The list of objects for completion will be determined by the interdepartmental commission of the city akimat. In total, according to preliminary calculations, it is planned to complete 502.9 thousand m² or 8382 apartments with 50% readiness. With this in mind, the Program also clarified the planned volumes of housing commissioning in the directions.
Mechanisms for the implementation of the Program are aimed at providing the socially vulnerable population with rental housing without redemption, encouraging individual housing construction and credit housing for the investors of Zhilstroysberbank, as well as subsidizing loans from developers and the population.
The priority areas of the Program are:
— Support for mortgage lending through subsidizing by the state of a part of the mortgage interest rate granted to citizens by second-tier banks for the purchase of primary housing through the Kazakhstan Mortgage Company:
To reduce the final borrower's mortgage up to 10%, for the first 8000 loans, a fixed interest rate on the issue of mortgages for the acquisition of primary housing is within 16% for two years.
For effective use of funds for subsidies, a threshold amount of lending to the population in Astana and Almaty is set at 20 million tenge and other regions — up to 15 million tenge, for a period of up to 15 years.
Under these conditions, the average monthly payment for the loan will be: in Astana and Almaty – 158 000 tenge and regions – 116 000 tenge, thus, the reduction will be 30%. The calculation is based on the average area of the purchased housing of 70 m², the cost in Astana and Almaty is 300 000 tenge/m² and in the regions – 220 000 tenge/m².
— Stimulation of private developers through covering a part of the loan remuneration for construction companies by the state through the Damu fund:
For the developer, the final rate for subsidies is set at 7% for loans of STB that do not exceed 17% per annum. The cost of credit resources for developers is about 10% per annum. At the same time, 50% of the constructed housing is sold to investors of the HCSBK at fixed prices up to 260 000 tenge/m² in Astana and Almaty, to 220 000 tenge/m² in other regions.
This will help subsidize bank loans to developers worth 152 billion tenge and finance the construction of about 600 000 square meters of housing.
— Increase in the volume of credit housing construction on the principle of "revolving" to provide the HCSBK depositors and persons on the waiting lists of akimats at the expense of previously allocated funds, including to the quasi-public sector, as well as reinvestment of incoming lease payments.
To ensure the turnover of funds allocated for housing construction, 24 billion tenge will be allocated annually to the HCSBK, which will allow housing to its depositors at reduced interest rates. As a result, over 12 years, 12 million m² of credit housing will be built, which will provide housing for 285 000 families.
— Construction of rental housing without a ransom for the most socially vulnerable segments of the population:
Since 2017, the country plans to allocate 25 billion tenge annually. The constructed rental housing will be designed for the most socially vulnerable segments of the population among the waiting list of the LEB (disabled group I and orphans).
Over 15 years of the program, the rental housing fund will reach 45 000 apartments or 2.2 million m² of housing.
— Development of individual housing construction by bringing the necessary engineering and communication infrastructure.
For the development of IHC in the regional centers, a new pilot project is being implemented to build individual housing in a single architectural style through a single developer using local materials and technologies. This will ensure the cost of construction of 1 m² of housing is not more than 120 000 tenge for standard development projects.
The queues that are registered with the akimats for obtaining land plots are entitled to participate in the pilot project and independently buy out the finished house with land and ICI supplied or get preferential loans in the HCSBK for its purchase.
With such approaches, the monthly payment for the waiting list will be 70 000 tenge in the first 5 years, and 56 000 tenge in the next 10 years. These measures will allow us to introduce annually about 40 000 houses (4 million m²).
Baiterek Holding, as the main operator of the Program, actively participates in the implementation of program documents for housing construction through subsidiaries, such as Baiterek Development JSC, KMC, GHCF JSC, Damu EDF and Housing Construction Savings Bank.
Housing Construction Savings Bank implements a system of housing construction savings aimed at improving the living conditions of the population by attracting depositors' money in housing construction deposits and providing them with housing loans.
To date, the system of housing savings is the only chance now for the mass consumer to solve their housing problem, commercial banks as a whole are not interested in mortgages, they provide it only to their current high-paying clients.
Therefore, Housing Construction Savings Bank is the number one player in the market of financial mortgage products and the only affordable option for the purchase of housing are lending programs through the system of housing savings.
For 2014-2016, the Bank's share in the economically active population of the country has increased: in 2014 by 5.3%, in 2015 – by 7.1%, in 2016 – by 9.8%.
In the mortgage lending market over the past three years there has been an increase in the share of HCSBK to 70% of the annual issuance of mortgage loans. During 2016, the growth of new depositors amounted to over 170 000 people and reached 780 000.
Therefore, the Nurly Zher program is mainly focused on the issue of effective use of the system of housing and construction savings for lending for home purchases.
Within the framework of the Nerly Zher, the bank participates in providing loans to households during the implementation of loan housing to runners and depositors of the bank, individual housing in a pilot project, in addition, the bank implements its own software products to provide housing for its depositors, and also provides loans for the purchase of housing as primary, and in the secondary market.
Within the framework of one program, Nurly Zher, all resources and issues in the field of housing construction from the current Nurly Zhol State Program for Infrastructure Development for 2015-2019 and the Program for the Development of Regions until 2020 were integrated and concentrated.
The Program takes into account the issues of all categories of citizens with different income levels.
Each year, for the poorly socially vulnerable layers of the population, akimats will guarantee the construction of about 3000 apartments without redemption, and for a solvent category of waiting for akimats and investors of the system of housing construction, they will build and offer to buy out credit housing at affordable prices.
Annually, it is planned to prepare land plots with the necessary engineering and communication infrastructure for subsequent provision of waiting lists for the construction of individual housing by themselves or for the construction of pilot ready-made individual houses by the akimats.
For other citizens without restrictions, the right to receive a concessionary mortgage in the second-tier mortgage for the purchase of primary housing and to encourage the construction of housing by developers provides for the possibility of obtaining a loan at a reduced rate.
In 2018, at the expense of all financing sources, it is planned to put into operation more than 10.5 million m² or about 100 000 houses. Due to state investments, it is expected to commission:
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