Completed houses at the Aung Zaya Housing Project in Hlaing Tharyar township, Yangon, in October 2006.

WHEN it comes to low-cost housing market, people tend to think of housing projects in Yangon’s satellite areas, rather than cheap apartments in the suburban areas, according to industry sources.

“Most people do not include cheap apartments in the low-cost market but as a professional I would say they should be included. It’s just that they don’t have “low-cost” in their actual name,” says U Aung Ko Win, a manager at Unity Real Estate.

He says apartments should be included in any discussion of the low-end housing market for a good reason: “In general, apartments are the most active sector of Yangon’s entire property market.

“We found that potential buyers would rather buy an eighth-floor apartment downtown rather than a house in an outlying area for the same price,” he says.
Upper-level apartments downtown and detached houses in the outer suburbs both sell for about K10 million, he says.

“People buy apartments because they are flexible – owners can either live in them or rent them out as investments.”

“Owners can find tenants for their apartments easily and receive K60,000 to K70,000 a month in rent. They just have to make an initial investment and then enjoy the monthly dividends. At the same time their investment is growing in value, so investors like them a lot,” U Aung Ko Win says.

U Than Oo, managing director of Mundine Real Estate, says the low-end housing market is less active in contrast.

“Buyers were initially interested in housing projects on Yangon’s outskirts when they were announced and thought they looked quite promising. But they discovered later that the market for these houses is pretty slow; that’s why I think the market has stagnated,” he says.

There are about 10 low-cost housings projects on the market and among them Kansittha Low-cost Housing estate in Hlaing Tharyar township, and Aung Zeya and Yuzana Gardens Low-cost Housing estates in South Dagon township, are the most recognised.

“People buy low-cost houses to live there, not to use them as investments. That’s why the market is slower when compared to apartments,” U Aung Ko Win says.

For those who do choose to buy an apartment, Mingalar Taung Nyunt and Sanchaung townships are the most popular areas with buyers.

“These townships are not in Yangon’s centre but they offer good transportation to other townships and the downtown area too.

“Some townships are good to live in because they have quiet neighbourhoods and regular electricity. But if they don’t have access to regular transport they are unpopular with buyers,” U Aung Ko Win says.

Daw Nan Than Yi, a Pun Tha Khin Real Estate agent, agrees with U Aung Ko Win that the popularity of these two townships is their location.

“Both townships are commercial and residential areas. Most people living in this area are those who work downtown and have to commute. Tenants choose to rent a 750-square-foot apartment for K50,000 rather than renting a house in South Dagon township for K10,000. It’s simple: They don’t want to spend money on transportation and waste time commuting,” she said.