CONFERENCE ON
HOUSING: AN ENGINE
INCLUSIVE GROWTH
FOR
April 11-12, 2013
Hotel 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 CHALLENGES
Salient 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 FRAMEWORK
Salient 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 INITIATIVES
Salient 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 ECOSYSTEM
Salient features
The 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 ISSUES
Salient 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
CLOSING REMARKS
AND
SUMMARY:





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
RECOMMENDATIONS
Housing:








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…CONTD
Housing 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.
2013)
2013)
THANK YOU