Agents predict property prices to rise in 2011
November 15 - 21, 2010
PROPERTY prices are set to rise next fiscal year as foreign investors home in on the Yangon real estate market, industry sources say.
“Sales and prices are cool now, but things will get brisk in March and April as investors hunt for property,” said Daw Myo Theint Theint Htwe, the manager of Yong Xin real estate agency.
July to September sales were brisk as local investors put their money into real estate ahead of last week’s election. Then, unlike in previous years, the market cooled in October as would-be buyers and sellers awaited the results of the poll, she said.
“Some property owners are expecting to sell over the next four or five months,” said U Kyaw Swar, a spokesperson for Unity real estate.
Hot properties right now are in the middle range, about K200-K400 million for land and K40-K80 million for apartments.
Yangon property prices have risen year-on-year for the past 20 years, but the involvement of overseas investors will likely be an extra boost this year, said an official of the Myanmar Real Estate Entrepreneurs Association.
“We expect a lot of foreign investment post-election, and land prices will rise,” he said, estimating the likely increase at 20 percent.
The hot townships in Yangon are Bahan, Mayangone, Yankin and industrial estates such as Shwe Pyi Thar, South Dagon and Shwe Lin Pan, which offer easy access from downtown. Prices could reach a peak in April-May as government budgets are finalised, the official said. “At that time, companies with government contracts for roads and other projects have got a lot of money,” he said.
Most foreign investors come from China, and then Thailand and Vietnam. They want to buy land to build factories and automobile plants, he said.
Joint-venture investors working with Myanmar companies mostly rent, but foreigners who own companies buy through local intermediaries, he said.
“I’ve heard South Korean investors envisage building housing complexes like Pun Hlaing Golf Estate, so they’re searching for large properties in the outskirts that are worth several billion [kyat],” said U Min Min Soe, a spokesperson for Mya Pan Tha Khin real estate.