A meeting has been held at the Ministry for the Development of the Russian Far East to discuss measures to create a market for affordable housing in the region in keeping with the President’s May 2012 executive orders.
There is a new system of selling land plots at so-called Dutch auctions, which is stipulated in the federal law on promoting housing construction, and which will hopefully motivate developers to build economy-class housing. In a Dutch auction the price on an item – in this case the price of 1 square metre of housing – is lowered until it gets a bid. The winner is granted a free land plot from the Russian Housing Development Foundation (RHD Foundation) but for a limited time during which he must build housing that will be sold at the price set during the auction.
Vulnerable groups in need of government support will be able to buy the economy-class housing at a special price. A Government resolution has identified 13 such groups.
The first such auction in the Russian Far East was held in December 2012 in Ussuriysk, Primorye Territory, for the construction of 223 residential blocks on a land plot provided by the RHD Foundation. In all, the RHD Foundation has provided land for six cooperative housing construction projects in the Primorye and Khabarovsk Territories and the Sakhalin Region of the Far Eastern Federal District.
Nikolai Chatkin, head of the ministry’s Infrastructure Development Department, said the ministry would continue to help promote this positive practice in the region. It will also work together with the RHD Foundation to provide affordable and comfortable housing to residents of the Russian Far East.
Source: Ministry for the Development of the Russian Far East
