Thursday, August 17, 2017

Mid-end property sales suffering in the downturn

Rain and the recession have combined to drive down sales of medium-sized properties in the outskirts of Yangon, industry experts say.

As of the first week of August, said Daw Yamin of the Shwe Min Thamee agency, sales of mid-sized properties had fallen by 30 percent over the year.

“Medium property sales ranging between K50-60 million in Thaketa and Thingangyun townships are cooler than last year because of the impact of the crisis. A year ago, it had not yet begun to bite,” she said.

U Than Oo, managing director of the Mundine real estate agency said: “Sales of medium-sized apartments in the K50-K60 million range have cooled sharply since early August, a bigger drop than last year, but it’s hard to put a percentage figure to it.” Property sales are traditionally slow at this time of the year, the height of the rainy season.

Another factor cited by some is the government auction of 147 state-owned properties in late July, which attracted investors interested in acquiring centrally located properties. However, the impact of the auction on normal sales is not clear.

U Zay Yar Min, of the North Okkalapa-based Land Mark agency, said the sales decrease also had to do with the location of the apartments, as well as the fall in spending power.

“Part of it is that spending power is low, but location is the more crucial factor. Even if they spend the same amount of money, people want to buy in the six downtown townships. We handled the sale of five apartments last July, but this year it was hard to sell a single one from the outer townships.”

U Zay Zay Maung, marketing manager of Khit Thit agency in Pabedan township, agrees that location is important and that buyers willing to buy in a hot location are less interested in remoter areas.

“Buyers want to buy property where the market is active. There are 21 active places in Yangon, including six downtown townships, but medium-sized properties don’t sell so well in less favoured townships like Thaketa and Thingangyun,” he said.