Standardised condominiums with good facilities, like Dagon Centre (above) in Sanchaung township, have experienced a surge in demand following Cyclone Nargis.

FURNISHED luxury condominium apartments in prime Yangon locations are greatly in demand, especially among wealthier buyers, estate agents say.

The demand for condos rose significantly after Cyclone Nargis struck, as customers sought the security of earthquake-resistant foundations and buildings designed to withstand high winds.

And prices are likely to remain high, as demand outstrips a supply constricted by a shortage of fashionable sites, such as major intersections, say industry professionals.

“Condos suffered less destruction in the storm. The market for both rental and sales rose by 20 percent after Nargis because these buildings sustained less cyclone damage. Another reason for customer preference is the earthquake resistance provided by strong foundation structures and resistance to high winds,” said the manager of Unity Real Estate agency, U Zaw Zaw.

The price range for a regular, unfurnished condo is K42 to 75 million. “There’s little scope for reduction in condo prices because people wishing to spend more tend to buy a luxury duplex, at a cost of at least K100 million. So many people prefer to buy a luxury condo instead and invest the surplus elsewhere,” he said.

U La Win Tun said fully furnished luxury condos at sought-after intersections range from K120 to 160 million, but would come in under K200 million because “If the condo is that expensive, the buyer would look for a duplex at South Okalapa or Thinguangun townships instead.”

Shortage of supply will also help maintain the high prices. “In Yangon, there will be no other projects at big intersections like Pyay Garden. Developers want to build at these intersections because buyers consider them good locations. A luxury condominium located elsewhere would not attract the best sales and rentals because buyers select the location of the condo very carefully,” said U Zaw Zaw.

He gave as an example the Parami condo complex in Hlaing township which, he said, had not become popular because its location was not considered fashionable.

What customers wanted, he said, was “A highly secure compound, a pleasant environment, security and privacy – these are the key factors for the middle and upper range of buyers,” he said. Other factors included secure parking and the easy availability of luxury shops and restaurants.

But if Kabar Aye Pagoda Road and Pyay Road were considered the most fashionable locations, “Bahan, Kamaryut, Dagon and Mayangone townships are best for condo infrastructure,” he said.

Condo buyers were not put off by monthly maintenance costs, said U Zaw Zaw. “Monthly condo fees range from K10,000 to K30,000 for lift, security and cleaning tasks. For the wealthier client, these charges can seem insignificant compared to the original capital outlay,” he said.

Asia Land real estate marketing manger U La Win Tun agrees that fewer condos are likely to appear because of the shortage of prime locations. “A condo complex needs at least 40,000 square feet in a great location, and sites of that size are rare. People choose condos because of privacy and if they do not like the surroundings they just won’t buy,” he said.

“Whenever we demolish an old building, its easy to build a normal apartment block in its place. But for a condo, we need a larger space, not just for the apartments, but also for shops, car park and other infrastructure like electricity and water supply,” U La Win Tun said.

According to U Zaw Zaw, only one condo complex was built for every nine “normal” apartment blocks. “This shows the importance of location”, he said.
The most sought-after fully furnished condos are Central Tower in downtown, with a floor space of 1200 square feet for K90 million, Ye Tagon condo in Kyimyindaing township, 2300 sq.ft for K120 million and Pyi Wa condo in Bahan at 2150 sq.ft. for K160 million, he said, for investment as well as residential purposes.

Standardised condos with superior facilities and good infrastructure include Central, Olympic and Kant Kaw downtown, River View in Ahlone, Diamond in Kamaryut, Dagon Centre in Sanchaung, Ye Tagon in Kyimyindaing, Myanmar Goneyi in Mingalar Taung Nyunt township, Pearl, Pyi Wa, University Avenue, Yuzana Tower, Dagon Tower and Shwe Than Lwin in Bahan, Junction 8, Shwe Hinthar and Thiri in Mayangone township, where people see the property as both a good investment and a good location for a residence, according to agents.

Since Nargis, 60 percent of his agency’s customers are after condos rather than ordinary apartments, he said. “Sometimes the demand is so strong we cannot find an apartment in the location they want, and have to offer them something nearby,” said U La Win Tun.