Apartment prices increase by 10%

According to the National Statistics Office, housing prices in Ulaanbaatar increased by 9.9 percent in April compared to the same period last year. This is a level slightly lower than the annual growth of inflation. As a result, the average price of one square meter of new housing became 3.53 million MNT.

When comparing apartments with new apartment prices, the old apartment prices are 5.7 percent lower than the new apartment. In Ulaanbaatar, depending on which district the apartment is located in, the price of per square meter difference is 1.2 million MNT. For example, the per sq.m price in new apartments is 8.8 percent higher in Khan-Uul district than the average and 35.2 percent lower in Songinokhairkhan district.

The price of new apartments has grown by 1.8 times compared to a decade ago. The reason behind it was the price increase of 31 percent in construction material. The second reason is the change in currency exchange rates. While the apartment price increased by 10 percent in the past year, MNT weakened against USD by 23.5 percent.

A significant change in April was the old apartments located in Chingeltei district exceeded the average price of apartments in Sukhbaatar district and reached 4.17 million MNT per sq.m. For the past few months, the average price of old apartments located in Sukhbaatar district has been the highest, but in April, the price of old apartments located in Chingeltei district has increased. It is followed by the average price of new and old apartments in Khan-Uul district.

The number and capacity of newly implemented housing projects in Khan-Uul district is leading. For example, 42.3 percent of the total apartment orders are located in Khan-Uul district, while 76 projects are being implemented in Bayanzurkh district, according to Tenkhleg Zuuch company.