Mongolia

The 131-foot tall Genghis Khan Equestrian Statue is by the Tuul River at Tsonjin Boldog, where according to legend, he found a golden whip.

Mongolia on the bucket list

Mongolia, in east Asia, is a landlocked country bordered by China to the south and Russia to the north. Its population is approximately 3,129,000. The majority of its people are Buddhists, and the non-religious make up the second largest group.

Michael Davoren led a small group of Australians and New Zealanders there last year.

“You went where? people ask,” said Michael, “Why? is invariably their next question.” “Then, I tell them it’s a place of amazing people and amazing sights. And if there’s an opportunity, I’d love to get back there.”

He describes Mongolia as very much a frontier country, with wealth predominantly coming from mining and tourism.

Tourism, he says, is where there’s great opportunity for investment.

“Anyone who goes to Mongolia says ‘Let’s look at the Gobi Desert!’ It’s one of the world’s great wonders and, here alone, there is ample opportunity to capture a greater tourist market.”

He found the people amongst the most welcoming, friendliest and helpful he’s encountered, with Mongolia’s culture being very family orientated and people connected in small groups. English is widely spoken in the capital city of Ulaanbaatar.

“I see the people as embracing the best part of Western culture, without losing the history of their own culture, especially in housing and shelter. Around 60 per cent of the people still live in yurts, and you see examples of this right in the middle of the capital city.

“But while plenty of yurts are evident, not all property is low cost. We passed through golf course estates on the outskirts of Ulaanbaatar where prices ranged from $500k to $2mil US. More than half the population lives in Ulaanbaatar; they need to address infrastructure - but they already know this!”

Approximately 30% of the Mongolian population is nomadic or seminomadic, and horses remain integral to the culture. Over one million people live in rural areas, mostly involved in traditional livestock herding and, to some extent, crop production.

Land in Mongolia is under state ownership, though the Constitution provides for the possibility of private ownership of urban and arable land. Most private holders of land presently hold their land either through possession rights,

or use rights. Both foreigners and Mongolians can buy and sell developed freehold property, but the terminology is not ‘a sale of land’ but rather a ‘lease’ or an ‘Immovable Property Ownership Certificate’.

By way of simple explanation, there are three major ways of holding land.

1. Every Mongolian is allowed to have a plot of land to live on for free for life. It is allocated by the government, generally where people already live.

2. If a plot of land comes to auction, priority and lower prices are given to ‘good public institutions’ such as hospitals, schools and libraries.

3. Developers can buy a ‘construction lease’ of generally five years, with conditions including submitting architectural plans within one year, start foundations within two and complete construction within five years when most prefer to hand the land back to the government.

In 2018, RE/MAX Mongolia, owned by husband and wife team, Batbaatar Narantuya and Bujinlkham Bold, won the global network’s ‘Country of the Asia Pacific Region’ and ‘Leading by example’ awards.

“Mongolians are people who search out every opportunity to learn, hence why we were invited to visit with RE/MAX Mongolia and network with 450 agents. They were very interested in making connections. “When we visited the real estate offices, we found them similar to our own offices - modern, well-appointed and professional.

“Wherever possible, striking balloon signs were used to give an office high exposure, and we saw a couple of high rise building with the RE/MAX balloon right up top. You could spot them from three or four blocks away.”

Michael noted that RE/MAX Mongolia had a youthful team.

“The average age of agents would be in the mid to low thirties. The agents are younger because the industry is younger in Mongolia.

“Young people are jumping at the chance to get their start in the industry, and are coming in with very good education and experience to then hone their skills with the ongoing training that’s available.”

Around 68% of the total population of Mongolia is under the age of 35. “I suppose that Australia was once as immature in its real estate industry, and while we may be a lot further ahead now, Mongolia is willing to learn and keen to implement new ideas.

“Technology is oozing into the real estate scene in Mongolia, and databasing is just a big as it is here, but I could see how important culture, family and personal contact remains.

“In Mongolia, getting to know you comes before liking you, which comes before trusting you. Then business gets done, and that is really the basis of business just about everywhere in the modern world.

“It is a model of how real estate business and culture are linked in a country that is well worth visiting, and for more than just a flying visit. That’s why returning is now on my bucket list.”

Yurts are portable, sturdy, tent-like dwellings that have been the primary style of home in Central Asia, particularly Mongolia, for thousands of years.