Government of Ukraine Does Not Set Prices for Housing
OREANDA-NEWS. February 25, 2011. The government does not set prices for goods and housing. The Prime Minister Mykola Azarov said that during a meeting with representatives of the European Business Association.
"The government does not set any price, no, nowhere - not for food, nor for square meter", the Prime Minister said, noting that in socially sensitive areas the Government is negotiating with manufacturers and can express its wishes. Mykola Azarov told about the meeting with representatives of building corporations before the new year, during which they exchanged views on the restoration of the building industry.
In particular, the Prime Minister proposed to change the rules of housing market, to reduce the housing prices, and to make a step towards the buyer.
"I told them: "Crack the market. Make a step towards the buyer", Mykola Azarov said. Knowing the minimum price per square meter, which will provide 15-20% of cost of production (8 ths. UAH per 1 sq.meter.) the Prime Minister asked the builders: "So come out to the market with such profitability and offer these eight thousand. You will see that you will launch the housing selling. The money will come, the "chain reaction" of supply and demand will have place, you and I will run the housing market, than have your own landmarks on the market.”
The result, as noted the Prime Minister, was that January this year there were real estate market recovery. "January, the first time in three years the housing market revived and began to work", said Mykola Azarov.
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