Desire for abnormal profit killing housing sector

Accra, Jan. 30, GNA - Mr Hackman Owusu-Agyemang, Minister of Water Resources, Works and Housing, on Tuesday observed that the desire to make huge profits in the housing sector was a major contributory factor to the growing high cost of houses in the country.

He said profits between 20 per cent and 40 per cent that some players in the industry were making was on a high side adding that if they would be a little reasonable with housing rates, it would be in the larger interest of all.


The Minister expressed this sentiment when he swore-in a seven-member new Board of the Architectural and Engineering Services Limited (AESL) in Accra.


The AESL, which is the largest consulting architectural and engineering services company in the country, is to complement government's efforts towards making housing affordable to the ordinary Ghanaian.


Mr Owusu-Agyemang said: "Some of the bases for the cost of construction are questionable and it is time to take a hard look at the cost of buildings in the country.

"Profits in the sector are too high and something can be done to bring down the cost of construction."


He announced that an Engineers Council Bill, which sought to regulate the engineering aspects of buildings in the country, was in the offing and would soon be sent for Cabinet's for approval. Mr Owusu-Agyemang called for a re-look at the way contractors in the housing industry were graded and advocated an upgrade of the mode of classification.


Mr Ernest Banning, Chairman of new AESL Board, noted that they were taking over at a very challenging time in the sector and pledged to contribute their quota towards sanitizing the industry. He said AESL would always strive to uphold quality work and value for money.