New bank offers long-term low-interest loans for housing purchases
The Construction and Housing Development Bank (CHD) is considering a plan to provide long-term, low-interest loans to people who want to buy homes.
The bank was launched in January with an initial capital of Ks 100 billion (US$100 million) and operates under the supervision of the Ministry of Construction.
The bank was licensed by the Central Bank of Myanmar in July last year.
“Urban housing development is an important matter for people. The president himself called for the implementation of the National Housing Policy and Strategies,” said Dr Win Myint, the deputy minister for construction.
Affordable apartments are slated for construction not only in Yangon and Mandalay but throughout the country, he added.
Low-cost housing projects are currently underway in Yangon, Mandalay, Megway and Bago regions. The Ministry of Construction announced in July that the government plans to subsidise apartment prices to Ks 10 million per apartment. It also considers reducing the price of housing for government employees and pensioners.
Long-term personal loans for buying houses, apartments and condos are now available from the bank, according to the CHD.
According to recent studies, the cities with populations of 200,000 or more will probably see their populations double by 2030.
The government's 20-year urban development plan is expected to cost $146 billion and serves as a master plan for urban expansion, infrastructure, and good governance.
