The “4000 apartments” program is about to be implemented. A meeting was held on Tuesday between the Ministry for Road, Transportation, Construction and City Development, the Apartment Financing Corporation and representatives from construction companies.

Government employees who will be enrolled in the program can choose their apartments from www.ossk.mnand www.barilga.mnwebsites. After the selection of the apartment, the citizen will have to deposit a minimum of 10 percent of the total price of the apartment and pay up to MNT 40 million in 20 years with eight percent annual interest. The website will give all information about the apartment, prices and interior designs.

More than 60 companies will build the apartments of, but few have agreed to sell one sq.meter for MNT650,000, the rate fixed by the Government. Most construction companies think it is wrong for the Government to fix the prices of apartments. According to them, an apartment which costs MNT650,000 per sq.meter cannot be of good quality. They also oppose the Government decision to enroll in the program apartments which are mortgaged to banks. They see it as a way to forcibly decrease the price of the building.

The sale of apartments fell after the Government decided to provide cheap apartments for its employees, as people decided to wait for their turn. Even after a 20-25 percent fall in prices from last year, old two-room apartments still cost around MNT50 million. Construction companies are refusing to sell their new apartments cheaper than these.