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Make Tracks To Invest In Mongolia, Says Property Frontiers
August 15, 2009Article by Ray Withers
OXFORD, UK: 17 August 2009 – Property investors might well want to make tracks along with the railway and mining companies to look at Mongolian property, according to international real estate consultants Property Frontiers. The country has taken a battering from falling commodity prices in the recession but is sitting on a gold mine – and huge reserves of uranium, copper and coal – that are about to be opened up for exploitation to feed China’s resource hungry economy.
The Mongolian government has said that on the value of natural resources, the country is the 10th richest in the world but as yet has failed to benefit due to dithering over contracts by the Government. Now, the first contracts are about to be completed to open up the massive coal reserves by building new rail tracks – and access to gold and uranium deposits are about to follow – along with mining company executives, businessmen and diplomats.
“Demand for high quality accommodation from both high profile executives and ambassadors in Ulan Bator is at an all time high,” said Property Frontiers director David Cox.“With little high grade accommodation, and limited supply due to strict planning regulations, demand is sky-high and competition is aggressive. Rapidly appreciating land values, increasing salaries and a huge demand for good quality accommodation continues to drive rents upwards, with yields greater than 13% still being achieved.“
A typical development is The Temple View Residence, Ulan Bator, located in a prime location in the centre of the capital, overlooking the central park between the Memorial Museum and National Theatre. Mining executives always work and choose to live around the city centre, although right now most are forced into sub-standard hotels. The Temple will provide desperately needed western-standard accommodation for ambassadors, government employees and executives.
Developed by Mongolia Properties, with over 250 employees ranging from property management to letting agent firms, and with solid connections to the planning department, The Temple provides the necessary quality of housing for the market. With both commercial and residential facilities, and large family-styled apartments as most executives like to have offices in their apartments in Ulaan Bataar, The Temple development is expecting huge demand.
As an example, taking a 131square metre apartment, available for investors through Property Frontiers at £91,500. Assuming the property is rented through Mongolian Properties to an international executive, a reasonable rental rate of £1,220 per month is charged.
For more information contact Property Frontiers on +44 (0) 1865 202700.