Isayenko: Crisis in the construction industry will end not soon

06.09.2010 01:44
Articles about real estate | Isayenko: Crisis in the construction industry will end not soon The crisis in the construction industry will end no earlier than 2-3 years. Real estate tax will not bring anything good. It's bad ...
Mortgage we wait a long time. Told LigaBusinessInform said Deputy Minister of Regional Development and Construction Dmitry Isaenko.

- When will the promised government funding unfinished?

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In August, we get 100 mln. are we 30 mln. We plan to spend on Kiev. To do this, select the two objects (one for Troyeschina, another - on Darnitsa).

We will offer this accommodation to people who are in residential lines. Also, we received a huge number of applications from law enforcement agencies: the Ministry of Defence, from the internal intelligence service and the SBU. They understand that this year and next of money on housing for servicemen would not be free apartments - the same as they are willing to participate in the program for affordable housing. It's 70 people in Kiev.

- In 2009, funds were allocated to the unfinished late. In 2010, the situation is the same?
- Yes, 100%.

- What has changed? And how will you act in this situation?
- Unfortunately, nothing has changed. We were forced to take only house with a high degree of readiness, so that people who pay their 70% (according to the program, the state pays 30% for preferential housing, while 70% paid by the buyer, - Ed.) Received housing this year.

This year, as in the past, developers will receive funds no earlier than August and September. And funded from the budget will only objects of a maximum degree of readiness.

But there is hope that next year will be better. We spent the protection of the State Budget for 2011. This suggests that the government and Parliament have the opportunity to adopt the budget in September and October 2010. And that means money in the next year we will be able to receive since February.

Agree, that is not normal when the order of use of the funds we receive in the month of July.

Today there is money in the account, but we can not use them, because they are waiting out the decision on reduction of 1 billion UAH in 1940. (The amount that was planned by the State to support the unfinished projects this year - Ed.) For 390 mln. Decision made, but we are waiting for his number (number assignment decision of the Cabinet - Ed.).

In parallel, without waiting for these events, we have interdepartmental committee and approved the list of objects that will be co-financed (see the list).

These are objects that have a chance to get into the program. They are little more than a means, but we should have a choice: among the objects that can be put in this year, we want to pick up those items that meet people's ability to finance.

- How will decrease the volume of housing commissioned in this year?

- I think that the volume of housing put into operation will not fall. For the I half growth of housing in operation amounted to 14,1%. Surrender will be on the same level as last year - 6 million square meters. m

The market is focused on private development. If earlier the ratio was 60% to 40% (individual building sites in relation to multi-family homes, - Ed.), But now - 80% to 20%. Individual construction moves and grows.

- Will there be exemptions for individual building?

- Individual buildings and so on favorable terms. Ministry and so are all made in order to activate it: we are allowed to build without the contractors, we are allowed to build without examination (up to 500 square meters. M), without a building permit.

We go by September, a very serious options to simplify the licensing procedures. And at the end of September there will be a big meeting with the President, about the regulation of the market.

The construction industry is investing and, realizing that today is very important to the economy as a whole, we are entering the decrease in licensed positions to 115. We will make the entrance to the business under application of the principle, ie for the start of budetdostatochno apply. On the one hand, we will ensure that reliability and quality of construction was at a level and on the other side - will make sure to enter the market was simple.

Realizing that we can not help the global market entities with money, we try to help simplify licensing procedures.

- Would not increase the number of new construction companies to the risks of private investment? Both the Ministry going to control them?
- To date we have coped with this task. Number of construction companies ranged from 50 to 75 thousand. Nowadays in Ukraine 65 thousand construction companies. Actually build from them no more than 2,5 thousand to control them easily enough: we are in an electronic registry of each building.

The army of 1400 people Arhbudkontrolya (State Architectural and Building Inspection, - Ed.) Ability to check all items. I'm not afraid that we will have problems. Of course, we will go on increasing responsibility for their actions of market agents, ie, on the one hand, simplify entry into the business, on the other - will be personally liable for all violations on the site.

- How much will it cost subsidized housing for the waiting-Kiev?

- In Kiev, these objects will be sold at a price of 7.990 USD. per square meter. Deduct 30% discount and get value for implementation - 5, 593 USD.

- What you need to buy an apartment on the program \ "affordable housing \"?

- It is necessary to contact the local district or village council, in the community. But if local authorities do not go to the contact, then you can contact the Foundation for youth housing or directly to the Ministry. We do not deny.

From local authorities need only reference that the person is standing in the queue for housing.

- To do this, still need to fall under the category of \ "young \"?

- No, why? Fund the construction of youth - a financial institution. Something that concerns young people, then they have 200 mln. (To compensate for the youth home loans - Ed.) For this year, and they make loans. We use them as the financial structure of the market, like last year, SMI (State Mortgage Institution).

- And people who do not stand in the queue for housing?

- For them there is just the housing market.

And what happens to the SMI? There have changed direction, they reduced the amount of state guarantees ...

- For the SMI have been found means, and I half-year was commissioned a positive balance. This year, the SMI come only from interest obligations of $ 300 mln. for last year's apartment. They did not even dampen the body of the loan. As far as I know, these 300 mln. will be found to the SMI continued its work.

- What is the situation with the backlog of new construction?

- We monitor the market and see that the activation started: come to us letters and requests from developers. Companies are asked about the possibility of building, so there is revitalization. This is especially true of the city of Kiev.

- What are the rates being completed facilities in Kiev?

- Today, on the instructions of the Government, we are monitoring all the objects unfinished. Now almost all the objects that have a degree of readiness 50%, 70% went on alert.

Last week, Meshcheryakov (Alexander Meshcheryakov, deputy head of the Kyiv City State Administration, - Ed.) Held a meeting on the situation with the construction in Kiev. In addition to objective reasons, is subjective.

So, zastroyschki now hide behind the anti-crisis laws and do not want to pass objects. Today, the law allows not to return money to investors. Unfortunately, not all construction companies are using this law in good faith. At year end, the objects take unprofitable (in terms of state aid, unfinished must be submitted before the end of the year - Ed.) Because they need to be heated, to incur additional costs. A man to call in new building and can not live once. Therefore, the process of delaying commissioning.

- A place for new housing in Kyiv else is there?

- Sure. At 30 acres, which set aside the General Department of Housing, someone Golitse (Chapter GU housing KSCA Michael Golitsa - Ed.), We can build several million square meters of housing. With the arrival of the chief architect (in the contest for the post of Chief of Urban Planning, Architecture and Urban Environment Design won the vice-president of the National Union of Architects of Ukraine Sergey Tselovalnik - Ed.), Which is enough progressive thought in this direction will be quickly approved the concept of the General Plan. We will determine the sites where it will build affordable housing, and most importantly, the new chief architect of the capital to think strategically, he said that Kiev will evolve in the direction of the field.

The next year, begins a large investment project to build a ring road around Kiev, which will be carried out for attracting loan funds guaranteed by the government. Constructed road will be about four years. The project cost about $ 10 billion This will significantly increase the boundaries of the city.

In Kiev this year will put three objects on the program for affordable housing. At two sites I have been involved in commissioning. They have passed and people were given keys. But these were no construction budget. The next house, I hope we will pass through the budget.

- What is the situation with the construction of affordable housing in the regions?

- In Ukraine foremost we Kharkiv, Poltava, Chernigov. Construction has begun on several sites so far, as the plots allocated by local authorities who do not have a lot of money for design and construction documents.

- Property Tax - Is it required the market?

- For the construction market is nothing good real estate tax will not bring. It is harmful. The larger construction sites, the more real estate to invest more money in the construction industry, building materials purchased. Introducing a tax on real estate, we will restrict people with money.

If you already have and to introduce such a tax, then I think it should be over 600 sq.m. Those houses that are built in Kiev, no one builds a smaller 250-300 sq.m. And if you limit the tax base ranging from 250-300 square meters, it will not tax wealth under it will get very many.

- Dmitry Valeriyovych, comment on, please, problems with mortgage loans and their impact on the market?

- We Tigipko (Tihipko, Vice Prime Minister of Ukraine, - Ed.), Developers and bankers, held several meetings. Starting from the last meeting, I realized that a mortgage in this country we expect a very long time. No Tigipko, nor the bankers do not see the possibility of reducing the loan interest rate to at least 16-17% per annum. This means that the developer will have problems with credit.

Today, the liquidity of banks - around 70 billion UAH. The money banks have, but the interest rate below 22%, unfortunately, does not work. And just to get cheap loans for the construction is not possible.

Even if we, for example, we can try to attract mortgage funds, it is unlikely that today there is a borrower who will be able to maintain their legal income. Legal wages are dropped. A Standard Bank and the SMI indicate that if a person takes a loan for 20 years, its income must be at least $ 1 thousand per month. Such people have a little bit.

I would not count much on the mortgage, because the housing market, it is 7% - is in the best years. Our people are still a huge amount of money on hand.

- When the crisis ends in the construction industry?

- My predictions - 2-3 years we will be in this state as now. There are no objective reasons for the crisis.

- Even though that next year you expect more money to developers?

- In any case - it is a drop in the ocean. Disbursement of funds in capital construction industry should be 340 milliard. We have fallen in half. On the housing market, we have mastered in normal years (2007, 2008.) To 200 billion

We help people get affordable housing, but no more.

Why do we lay the law only completion of housing? This is - a way to stimulate the market. We will finish that has a high degree of readiness, and create a market situation, when there will be supply. Then the increase in demand. And demand stimulates the market. There is also a secondary market, but he was dead.

Content tags: Housing construction
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