Saturday, August 19, 2017

Agents predict property prices to rise in 2011

Real estate agents say property prices in Yangon are sure to rise early this year as more and more businesspeople invest in property instead of gold, foreign currencies or cars.

Agents say their telephones lines have been overloaded with potential customers inquiring about downtown apartments, blocks of land on the outskirts of Yangon and industrial plots.

“People are ringing throughout the day to ask about prices but the activity has not yet translated into so many deals – I think people are assessing the market,” said Daw Myo Theint Theint Htwe, the manager of Yong Xin real estate group.

She said demand fell slightly in December but predicted that it would soon recover, adding that some sellers have begun lifting their asking prices.

“Some of our clients have asked us to lift the advertised prices on their properties. One owner was asking K900 million in November or December but has bumped the listed price to K1 billion now,” she said.

She added that those raising their prices are looking to sell in exclusive locations such as Bahan, Kamaryut and Mayangone townships and along Pyay Road.

Several agents said the formation of hluttaws – or parliaments – on January 31 would add further impetus to property prices.

A Myanmar Real Estate Association official said he expected the national economic policy to change for the better once the hluttaws are formed, which will benefit the property market as well.

“The property market has lots of potential and I think demand will increase in many townships but particularly those that have value to foreign investors,” he said.

A Tarmwe township-based agent confirmed that inquiries to his company had dramatically increased in January.

“Clients want to buy plots at the industrial estates if they can find them for reasonable prices. I think some of these buyers are looking to on-sell them later at a profit or perhaps go into joint-venture production with foreign companies,” he said.

He added that plots at the better developed industrial zones, such as Hlaing Tharyar, normally sell for between K200 and K500 an acre but less-developed zones such as Shwe Linn Pan are K70-80 million an acre and Shwe Pyi Thar is about K250 million.

For residential properties, U Min Min Soe, a spokesperson for (Mya) Pan Tha Khin real estate agent said that exclusive areas such as Bahan township and locations on Pyay and Kabar Aye Pagoda roads remain popular while cheaper, further-flung townships such as North Dagon, South Okkalapa and Thaketa are gaining appeal.