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Asia Pacific Union of Housing Finance (APUHF) in association with Mongolian Mortgage Corporation (MIK), kFw and Frankfurt School of Finance & Management organized Workshop on Housing Finance during June 26-29, 2011 at Ulaanbaatar, Mongolia.

Objectives of the Symposium-
The Workshop focused up on the entire spectrum of Housing Finance. The agenda was designed to share the various facets of Housing Finance in the region of Asia-Pacific. Latest information, expert perspectives and respected insights on compelling topics confronting the policy makers, national governments, financial institutions and research bodies were on the offer during the schedule of the workshop. The Workshop showcased overview of practices together with specific country perspectives adaptable to local contexts.

Participation-
Participants of the Workshop on Housing Finance included international housing finance experts from housing finance institutions representing countries viz. Thailand, Philippines, Japan, Azerbaijan, Indonesia, Malaysia and Mongolia besides India.

Representatives from UN-HABITAT, IFC and NHB also took part.

The workshop focused on three main topics, capturing the housing problems faced in Mongolia as well as in other APUHF member countries. These included:

  • Housing financing market experience in selected APUHF countries;
  • Market-based experience with low-income housing finance; and
  • The experience with secondary mortgage market operators.

The topics were treated in form of technical sessions that included presentations from the speakers with subsequent questions and answers. Such approach allowed for a very good exchange among the local and international participants.

Speakers from India, Thailand, Philippines, Japan, Azerbaijan, Indonesia, Malaysia, China and Mongolia shared their experience and knowledge of their countries and respective institutions.

The first technical session was chaired by Mr. O. Chuluunbat, Member of Parliament. Speakers presented the housing situation in India, Thailand and Mongolia. Mr. Vishal from India presented details of the demand driven growth for housing finance in India. He stressed the fact that affordability and accessibility remain major challenges for the low and moderate income population there. A remarkable shift in market focus towards affordable housing can be observed in India. Mr. Ballobh from Thailand presented the case of Government Housing Bank of Thailand. His institution assists Thai people to have their own home. It does so by providing mortgage loans to general public with emphasis on low and middle income groups. The institution operates in the banking system on commercial basis and competes in the free financial market both in funding and lending. The bank does not receive direct-funding or subsidy from the government. In her presentation, Ms. Enkhbayar, CEO of MIK, highlighted the need for a clear Government affordable housing and housing finance strategy. Furthermore she emphasized the need for strong explicit or implicit support by the Government (funding or guarantee) in order to address the affordability issues in Mongolia. The deepening of the secondary mortgage market could help bring long term funding that could relief mortgage loans from banks and convert into securities, hence increase the affordability.

The second technical chair was chaired by Dr. Xing Quan Zhang, Chief, Urban Economy and Social Development Branch, UN-Habitat, Kenya. Speakers from Thailand, Mongolia and Philippines presented approaches and initiatives that address the low-income housing situation in their respective countries. Remarkably enough, the most successful initiatives did not simply aim at providing financial services to the households; rather they offered additional support aiming at strengthening and empowering the local communities.

In the second day of the workshop the third technical session was chaired by Mr. Mr. Narayansamy Kokularupan, former CEO of Cagamas, Malaysia; Consultant Housing Finance. The presentation from Indonesia was held during this session, given that the representatives arrived late due to flight delays. Speakers presented the pre-conditions needed for establishing successful secondary market operators and how these preconditions are met in Mongolia. Furthermore they presented the performance and the role of secondary markets operators in countries like Japan, Azerbaijan and Malaysia and provided lessons learned from their experiences.

Outcome-
The event proved to be a great platform for knowledge sharing and exchange of success stories in housing finance, along with the identification of the challenges – existing and to be found in the road ahead. Housing financing market experiences and low-income housing finance in the Asia Pacific countries made the delegates aware about the existing scenario in the region and actions to be undertaken. Population growth, shortage of dwelling units, limited land and economically weaker section- all these factors are interlinked and need a strategic solution. Also, the ecology and environment are major concerns. Affordable Housing, Green Housing, Energy Efficient Housing – the answers we have still need further fine tuning and the Mongolia event was one such step in that direction.