HOUSE OF THE WEEK
An abundance of space at FMI City
CERTAINLY, space is not a problem in this house – once you get there. Over the Hlaing River, 45 minutes from downtown, there is a large one-storey house in a big compound waiting for someone ready to trade time for space. ...moreMid-range proves a bright light in prop sector
DEMAND for mid-range property in Yangon remained strong in 2009, despite the effects of two government auctions, industry professionals say.
U Aung Tun, managing director of Soe San (Lin) said that apart from the period around the government auctions, demand remained steady, especially for middle-income homes.
“After the auction, demand returned for properties ranging between K100 million and K300 million. High-end property is in short supply, and not many people can afford it. We haven’t done any deals for property worth more than K1 billion this year, but sometimes we do hear of such deals,” he said.
He said land was the first priority for buyers, and even plots in the suburbs were being sought after.
He said the tax law extension announcement also encouraged buyers to stick with property investment.
But the main reason for the interest in middle-market property over the past year was the increase in the gold price, coupled with the decay of the trade in vehicles.
“Some people bought land with potential after selling their gold when gold price were up at the end of the year, and some people in the vehicle market switched to property. So the property market became active again after two auctions this year,” he said.
U Bo Bo Kyaw, manager of Sai Khung Naung real estate, said that except for the auction period, the popularity of middle-range property – K150-K300 million – remained steady during 2009.
Residential property renting for two to three lakhs (K200,000-300,000) a month, and business space renting for K1 million to K2 million a month over the year were popular, he said.
“Interest increased after Thadingyut because the gold price went higher, so investors sold their gold and switched to real estate,” he said.
U Bo Bo Kyaw also agreed that the extension of the tax law had helped sustain investor interest.
“Buyers might hesitate if they had to pay tax at the old rate which takes 50 percent of the purchasing price where the source of income cannot be shown. Buyers are happy to make deals under the extended tax law,” he said.
He said apart from downtown property, demand for land was firm in Thingangyun, South Okkalapa, Mayangone and even some areas of North Dagon township.
U Maung Maung Mya, of Kyal Su Thit real estate in North Dagon township, said although some periods of the year had been dull, they had received more inquiries from buyers towards the end of the year.
“Property with a price ranging between K1 million and K3 million was most in demand. Most of the buyers were people who really need to live in the property – people buying for profit are not coming to the market as they were in 2007-2008,” he said.
