Ljubljana, 16 April (STA) - The government is considering leveraging the Housing Fund to mop up the overhang of unsold apartments on the market, Infrastructure and Spatial Planning Minister Zvonko Černač told Monday's edition of Delo.
The state-owned Housing Fund is looking into ways of either buying
unsold homes below market value, leasing with deferred purchase or leasing
in the traditional way, according to Černač.
$If the project
succeeds, the Housing Fund would become a financial and property
institution that would provide long-term incentives for leasing,$ he
Černač says the Housing Fund has enough capital, EUR
400-500m, to buy or lease about 3,000 apartments.
But he says the
project hinges on the overall financial situation in the country: if the
supplementary budget makes state borrowing cheaper, implementation will
become much more realistic.
Slovenia's housing market has been in
decline since 2008, with thousands of apartments remaining unsold despite
Prices of housing fell by 2.4% in the third quarter
of 2011 on the quarter before, with prices of new flats slumping by 5.2%
after three consecutive quarters of growth, official statistics
Only 180 new flats were sold in the third quarter, compared to
an average of 320 per quarter in 2010, according to transactions reported
by real estate companies.