Conference on Housing: An Engine for Inclusive Growth

CONFERENCE ONHOUSING: AN ENGINE FOR INCLUSIVE GROWTH

April 11-12, 2013Hotel Imperial , New Delhi, India

THIS YEAR’S CONFERENCE…. Participation of delegates from over 12

developed and emerging countries including Bangladesh, Indonesia, Iraq, Japan, Malaysia, Mongolia, Pakistan, Sri Lanka, Thailand, Nigeria and Yemen. The Conference saw representation from Central Banks of various countries, Policy Makers, Planners, Banks, Financial Institutions, Multilateral Agencies and Academia.

02 days conference – 09 technical sessions

ABOUT APUHF…. Asia Pacific Union For Housing Finance, APUHF acts

as a platform for knowledge sharing and networking. The forum intends to promote coalition and coordination among the Asia Pacific Countries in exchanging experiences and models on housing and housing finance

APUHF tracks the events and happenings in the housing markets globally

The users of the platform include member country institutions engaged in housing and housing finance

APUHF has entered into collaboration with APMCHUD (Asia Pacific Ministers’ Conference on Housing and Urban Development)

http://www.apuhf.info

INAUGURAL SESSION Salient Features Social Indicator Multiple linkages Spurs growth and generates employment Housing shortage in most of the developing countries.

Recommendations Active participation of stakeholders – enablers,

promoters, executors Adoption of a multipronged strategy, encompassing the

demand and supply side initiatives Market infrastructure building Risk mitigation measures Awareness building and consumer protection measures

SESSION I: THEME PRESENTATIONS - CROSS COUNTRY EXPERIENCES

Salient Features The participating countries shared the status of housing

sector in their respective countries along with initiatives taken / recommended for the sector.

Recommendations Micro Finance is seen as a plausible solution for inclusive

housing Development of Innovative yet simple products Securitization Regulatory Framework required Rental cum ownership housing Need for sound long term housing policy Land and infrastructure – need efficient management

SESSION II : URBANIZATION AND ATTENDANT CHALLENGESSalient features Urbanization - rapidly growing phenomenon being

witnessed by developing countries New and unprecedented challenges Policy makers and planners looking for innovative

models

Recommendations Single window clearances Encouragement to PPPs so that the project is not

abandoned in the last stages due to financial constraint Clear and valid titles Proper infrastructure planning

SESSION III: INCLUSIVE HOUSING - REGULATORY AND POLICY FRAMEWORKSalient features 02 important aspects – land & finance Limited growth of Micro housing finance Incremental lending and incremental

construction

Recommendations Compact cities - effective and efficient land

usage Improving security of tenure Attract more housing finance as the market is

highly under penetrated

SESSION IV: HOUSING CHALLENGES: INTERNATIONAL FINANCIAL INSTITUTIONS’ PERSPECTIVE Salient features Affordability and accessibility – land & finance Affordability is impacted by increase in property costs, increase

in cost of building materials, lack of availability of mortgage finance and no access to credit

Different models for slum upgrading, subsidies, housing, microfinance, public rental housing

Recommendations Focus on LIG, EWS as well as lower MIG Infrastructure to be planned sustainably to solve the urban

housing shortage in the long run

SESSION V: GOVERNMENT POLICIES AND INITIATIVESSalient features Room for various players including government, private

players, development institutions and financial institutions. Policies that are meant to stimulate demand for housing

have both price and quantity effect. Risks and returns associated with housing sector

Recommendations Prudent policies so as not to generate asset bubble in the

housing market Policy design is very important but flexibility in the policy

architecture is equally important Risks can’t be eliminated but can be mitigated

SESSION VI: FUNDING HOUSING Salient features Two instruments being used in various parts of the world are

Covered Bonds and Mortgage Insurance Benefits of Covered Bonds and Mortgage Insurance Mortgage insurance is used at higher LTV (70-80 per cent)

Recommendations To continue with pre-crisis growth in a sustainable manner

the markets need to evolve not only in regulation but also in product development

Need to be adapted and tested before being implemented in other countries

SESSION VII: HOUSING FINANCE POST SUB-PRIME Salient features Lenders to know the borrowers Self-certification of documentation is not sufficient Market discipline is not enough Maturity mismatch

Recommendations Macro-economic stability – concern as well as responsibility

of Policy Makers Build in checks and balances and monitoring mechanisms Healthy LTV ratios which are dynamic and not static Risk weights should be decided taking into account trends in

loan quality and the environment.

SESSION VIII: LOW INCOME HOUSING - DEVELOPING A SUSTAINABLE SUPPLY ECOSYSTEMSalient featuresThe following impediments in developing a sustainable supply ecosystem need

to be addressed : Delay in approvals Rising costs of labour and material High concentration of housing construction

Recommendations Simple construction and hand over of housing units is not sufficient -

construction has to be carried out keeping in view the sustainability of the unit.

Use innovative and new products and technology Government should launch schemes which benefit LIG and EWS categories

SESSION IX: DATA & STATISTICS AND CONSUMER RELATED ISSUESSalient features Availability, timeliness, accessible, completeness, and

accurate data Credit history is important for borrowers as well as lenders Challenges exist in data collection and verification – Scale,

Registration price is not always reflected of the actual price & Informality

Recommendations Technology penetration Information Verification – the information being collected

should be verified so as to minimize probability of default.

VALEDICTORY SESSION AND CLOSING REMARKSSUMMARY:

Demand for housing due to rising population and increasing urbanisation

Perceptible housing shortage in most of the developing countries

Strong need for stability in the sector Liability and asset mismatch of the FIs catering to the

sector to be tracked down. Need for confidence building among the stakeholders

RECOMMENDATIONSHousing: Stakeholders to work in tandem Need for real estate regulator Single window clearances - need for IT Platform Clarity and simplification of related laws. Fiscal measures - taxes, incentives etc. Waiving VAT,

stamp duty and registration fees for low-income customers

Specific Incentives for Affordable Housing Projects Encouraging “Rent to own” models Long term funds and technical assistance from the

international institutions

RECOMMENDATIONS…CONTDHousing Finance: Credit to the poor and directed subsidy for the poor,

since they have limited affordability. Domestic savings to be mobilized for innovative

schemes. Underwriting measures and risk diversification. Regulatory environment to encourage innovation in

financial products and also ensure checks and balances. Need for customized loan Schemes Micro finance for LIGs Incremental building Integration of housing market with housing finance ,

primary mortgage and capital markets.

SOME MOMENTS….DAY 1 (11TH APRIL 2013)

SOME MOMENTS….DAY 2 (12TH APRIL 2013)

THANK YOU