The dream of owning a home is becoming increasingly distant for young people, with affordability slipping further month by month. Over the past 47 months, the average price per square meter for existing apartments has risen by 72.1%, while new apartments have increased by 63.3%, pushing both above ₮5 million per square meter.

🎩 The Most Expensive Locations

Looking closer at the price differences across six districts of Ulaanbaatar, Sukhbaatar district commands the highest average for new apartments at ₮5.97 million per sqm, while Songinokhairkhan is the lowest at ₮3.4 million per sqm.

💨 Rapid Growth in Chingeltei District

Over the past 47 months, since February 2022, the Chingeltei district has seen the fastest growth in new apartment prices, with a 111.8% increase, 36.5 percentage points above the city average. This reflects the limited new project supply close to the city center.

• 🧗 Relatively Low Growth: On the other hand, Khan-Uul district saw the slowest rise in new apartment prices at 50.8%, influenced by the high supply of new apartments in Yarmag. Meanwhile, the Bayanzurkh district experienced the smallest increase in existing apartment prices. These figures are useful for those scouting locations to buy their first home.

😭 The Harsh Reality

Consider a young, single individual saving for a first apartment. Choosing an average-priced 50 sqm unit at ₮5 million per sqm would cost ₮250 million. With a maximum mortgage of ₮150 million, the individual would need to save ₮100 million. Saving ₮2 million per month would take 50 months or 4.2 years. By then, however, the same apartment could have increased by ₮180 million, totaling ₮430 million.

🌌 Faster Than Light

Apartment prices are rising several times faster than inflation and income growth. This acceleration is driven by factors beyond the usual supply-demand cycle, including the construction sector, urban planning, and mortgage accessibility. A 3-pronged policy addressing job decentralization + infrastructure + housing, alongside targeted financing options for first-time buyers and genuine demand segments, is urgently needed.