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Yangon Real Estate Only Seeing Demand for Rentals
02/04/2019
AUTHOR: HTWAL SAN
Due lack of investment in Yangon’s real estate sector, there is very little demand for real estate properties with exception of rental properties, according to local real estate agents.
“Investment in real estate is very low and thus the real estate market is inactive. There is only demand for rental properties. Before, the prices were set based on location. But now there is no set price. If you like the price, you will sell it or buy it,” Daw Moh Moh Aung, Secretary of Myanmar Real Estate Services Association, said.
Despite development projects in some prominent places in Yangon as well as Dawbon, Thaketa, South Okkalapa and Thingangyun, the real estate market remains calm.
Demand in Yangon’s real estate market has been low since 2014 and is remaining inactive even though there was some activity in the market back in 2015.
“Land prices decreased along with ease demand for properties. Apartment rental prices also decreased reflecting the lower demand. The price properties were quoted at where once around K100 million, but they have dropped by 30 or 50 percent. Apartments worth around K50 million are now around K25 million. There is almost no buyers for finished apartments,” Ma Nan New, a real estate service provider based in Bahan Township, said.
Now stakeholders in the industry are preparing laws for apartments to protect owners and tenants.
“We need a law to address the problems between owners, tenants, buyers and contractors. There are some cases in which buyers of the apartments have to pay rental fees like a tenant. If we have the law, the rights of the buyer will be protected by law and make the real estate purchasing contract formal letting the buyers to use it as collateral,” U Lar Zel, General Secretary of Myanmar Licensed Contractor Association, said.
U Kyaw Win, former Union Minister of the Ministry of Planning and Finance, said in March 2018 that NLD administration will focus on infrastructure. U Phyo Min Thein, Chief Minister of Yangon, also said that he will make Yangon an economic hub important both locally and in Asia.
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