What is the solution to reduce housing prices? – Tejarat News
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According to Tejarat News, Saeed Ghafouri said: providing building materials in the implementation of infrastructure services and superstructure of the National Housing Movement project has heavy costs for the government and applicants, which increases housing prices, but it is not considered in expert analysis. It is necessary for the Ministries of Security, Economy, Roads and Urban Development and the Stock Exchange Organization to think about the purchase of construction materials at a suitable price for builders and mass builders.
He said: During the past few days, the discussion of the housing price reduction movement and the role and importance of procuring construction materials at a reasonable price and providing solutions to reduce the price of these materials, especially steel and cement, were raised by the Minister of Roads and Urban Development and construction industry activists with the aim of reducing costs. The plan of the national movement and helping people to become homeowners has been pursued and demanded.
Ghafouri added: The fact is that, like other goods, the cost of housing can be considered a function of inputs such as equipment, materials, labor and land.
The price of land has been removed from the National Housing Movement Plan
A member of the board of directors of the Omran Sadadi Hadid company, stating that land as one of the main factors in housing production, has a high share, said: according to the law of jump in housing production and other laws such as the law of organizing housing production, the price of land in the long term is higher than the price of land. The input of housing production is excluded and the cost price of subsidized housing is not included in the relevant analyses.
Ghafouri emphasized: Labor force and technology also have stable conditions due to the stickiness of wages in the labor sector and the existing technologies of the country. Therefore, one of the most important ways to reduce the cost of housing production and supply is to control the price of construction materials, whose price changes have a significant effect on housing construction costs.
The member of the National Housing Headquarters of the Ministry of Roads and Urban Development continued: In the economic analysis, construction materials in the housing sector are separated into two metal parts, including rebar and beams, and non-metal parts such as cement, sand, brick, lime, etc. Currently, cement and steel are offered in the commodity exchange, and any price signals related to steel and cement in the commodity exchange have a direct impact on the cost of building residential units.
The contribution of cement and steel in infrastructure and superstructure services is significant
Ghafouri considered the importance of cement and steel in the preparation, landscaping, and superstructure services of projects related to the national housing movement to be considered as one of the important issues that are not considered in some comments about the amount of cement and steel used in the housing construction sector. And he added: Some of these services are sometimes not considered as hidden costs in expert analysis, but the reality is that they are provided by the applicants of the National Housing Movement and the other part by the government.
He clarified: generally, support projects in the housing sector are implemented in places that lack land preparation operations, including the construction of access roads and related technical buildings such as bridges, bridges, concrete tables, retaining walls, etc., and the majority of their construction costs require the use of rebar and It is cement.
According to Ghafouri, in the landscaping section of mass construction projects, whether in the construction of villa units, accounting for the cost of courtyard walls and the relevant foundation, as well as the installation of metal doors and other related measures, or in the section of apartment and high-rise units, which should be built in the area of platforms, the construction of an area wall , metal fences, etc., it has a significant volume of steel and cement consumption.
The member of the Board of Directors of Omran Yadadi Hadid Company continued: The main materials used in the steel sector of mass housing construction include ribbed bars 10 and 12 of type A2 for use in tunnel construction structures and ribbed bars 14, 16, 18, 20 and 25 of type A3 in Beam and column structures and foundations of concrete structure buildings, which are mainly from Neyshabour, Abhar, Zob Ahan, Isfahan steel factories, etc., as well as the use of type two cement from Tehran, Firouzkoh, Shamal, Abike, etc. cement factories.
He stated: The provision of the mentioned items used in support projects such as construction of housing, schools, mosques, police stations, water tanks and other infrastructure and superstructure services, taking into account the existing mechanism in the commodity exchange, has suffered from unnecessary competition and on the other hand, the price has increased. Is. While the vast majority of these plans have specific prices in the price list, any price increase will cause the project completion time to be longer, and on the other hand, the costs will be adjusted and the final price will be more expensive.
Government agencies should provide the basis for reducing the cost of housing
The member of the National Housing Headquarters of the Ministry of Roads and Urban Development suggested: As emphasized in the tasks of Article 13 of the Housing Production Leap Law, the Ministry of Economy and Finance, the Stock Exchange Organization and the Ministry of Security in fulfilling one of the main promises of the 13th government, i.e. the construction of four million housing units in four Last year, they cooperated more closely with the Ministry of Roads and Urban Development and provided the basis for the purchase of construction materials at reasonable prices for builders and mass builders.
The issue of cement and steel being listed on the stock market or not has become one of the daily topics of Iran’s economy to the extent that two ministers related to these industries have different views. Bazarpash – the Minister of Roads and Urban Development – as the custodian of house building in the country, believes that the commodity exchange causes the price of cement and steel to increase, and in recent days he said that the exchanges do not want to reduce the price of these goods.
Farshid Pourhajat, the secretary of the Association of Mass Builders, also said in this context: There is no doubt that the stock market is considered a progressive tool, and I do not believe that construction materials will be removed from the stock market, but today’s mechanism of the stock market in Iran has fundamental violations and the government should take the price risk. Reduce the construction materials in the National Housing Movement project.
On the other hand, Khandoozi, the Minister of Economy, considered the entry of basic goods into the stock market as crossing the path full of rent and corruption in the 80s and 90s regarding these goods, and said in recent days that the government has no decision to withdraw cement from the stock market.
Source: ISNA