Thursday, July 27, 2017

Land near Thilawa sees steep increase

A lack of buyers has not stopped asking prices for land around Thilawa SEZ from continuing their upward trajectory, according to real estate agents.

Asking prices have climbed to as much as K5 billion per acre from earlier highs of K3 billion, though would-be property sellers are finding few takers, according to U Khin Maung Aye from Shwe Kan Myae Real Estate.

Although sales are slow at present, hopes are high that property investments will pay off in the future in the areas around the SEZ. U Yan Aung, managing director at Sai Khun Naung Real Estate Agency, said many people are watching to see if the project will be a

success.

“People are watching because it’s the first project of its kind,” he said.

“Land [prices] will be good later.”

Much of the focus is on selling the land as rental prices are limited by the government, he said.

Meanwhile, Thilawa Special Economic Zone – 51 percent owned by Myanmar businesses and government and 49pc by Japanese counterparts – aims to begin commercial operations by the end of 2015, according to SEZ management committee chair U Set Aung.

Thilawa officials have not yet announced what it will charge for industries looking to locate to the SEZ, though officials pledge costs will be competitive with similar industrial sites in Yangon and below many of its ASEAN competitors in order to attract foreign investment.

The firm also conducted an over-the-counter share sale to Myanmar citizens last month, which it claims was oversubscribed.