Saturday, August 19, 2017

Agents say Shwe Lin Pan zone to be next hot property

A young man fishes at the Shwe Lin Pan Industrial Zone in Yangon’s Hlaing Tharyar township. Photo: Kaung HtetA young man fishes at the Shwe Lin Pan Industrial Zone in Yangon’s Hlaing Tharyar township. Photo: Kaung Htet

Demand for the land plots at Shwe Lin Pan Industrial Zone on Yangon’s outskirts is on the way up, real estate sources said recently.

The zone’s major attraction is its lack of development so far, says Mahar real estate’s marketing manager U Thura. That paucity of development compared with Yangon’s other zones such as Hlaing Tharyar or Shwe Pyi Thar, has kept prices low to date. But should that infrastructure arrive – perhaps along with foreign direct investors – site owners will find themselves owning lucrative properties, he said.

U Thura said prices at Shwe Lin Pan Industrial Zone have been rising since June, with the number of unsold blocks at the site disappearing fast.

“Our sales for the months of June and July were about 20pc greater than May,” U Thura said, adding that sale prices for these months were double for the same months in 2009.

“In May, the price of 1 acre of land in Shwe Lin Pan zone was K85 million but by the end of July that was closer to K120 million,” he said, predicting that prices might reach K150 million by the end of the year.

One factor helping to push demand at the zone has been news that potential investors have been assessing Yangon for future projects.

“Representatives for a number of South Korean clothing manufacturers have been visiting Yangon in the past few months and asking about long-term leases at a number of industrial zones, which is something we’ve not seen for at least four years,” he said.

“The people who are buying are betting that foreign manufacturers will arrive in the near future and they’ll be able to enter profit sharing arrangements. At the same time it’s a safe investment,” U Thura said.

Another advantage is that most of the warehouses at the zone are relatively new, while those at Hlaing Tharyar are at least 10 years old, he said.

U Aung Kyaw Soe, from Hlaing Tharyar-based Koe Kant Hwar Kway agency, went further than U Thura, saying that prices at Shwe Lin Pan Industrial Zone have doubled in the past year.

“Shwe Lin Pan is still being developed infrastructure-wise but is preferred by beans and pulses traders. Land prices have increased to at least K90 million for a 1-acre block this July from about K45 million last year,” he said.

But he said the rise in demand was not limited to Shwe Lin Pan, although it was the most obvious example.

“Compared to June and July last year, demand for most industrial zone plots in Yangon has risen by about 40pc, with half of all sales for sites at Shwe Lin Pan,” U Aung Kyaw Soe said. The Shwe Lin Pan Industrial Zone was established in 1996 and is one of 19 such zones in Yangon.