Thursday, July 27, 2017

City plan could drive up prices

A new plan to limit high-rises could send property prices upward throughout the city, say real estate industry figures.

Zoning plans that confine high-rise buildings in Yangon to the downtown area could help drive up property prices in the short term, real estate experts said. The effect could spread through out-of-town areas as far as Bago Region.

“If the commercial zone is limited, prices will rise as the number of businesses there increases,” said Daw Moh Moh Aung, secretary of the Myanmar Real Estate Service Association (MRES).

A ripple effect could see appreciation of land values in Dagon, Thanlyin, Thilawa and as far as the boundaries of Yangon Region, some speculators believe.

But U Yan Aung, manager of Sai Khon Naung Real Estate, said the zoning decision could help end price volatility. “The big construction companies were waiting for the zoning decision because they didn’t want to buy land in areas where they couldn’t build high-rises,” he said, adding that uptown land zoned for high-rises could increase in value.

“Prices won’t go up significantly in areas already slated for high-rise construction,” he said.

“Uptown areas zoned for high-rise could be as valuable as downtown,” said U Khin Maung Aye, of Shwe Kan Myae Real Estate Agency.

“High-rise zones will be worth 20 percent more. Prices will stabilise when the zoning comes into effect and many low-cost buildings can be built uptown,” he added.

The city’s development committee, YCDC, has designated Bahan, Dagon, Kamaryut and Mayangone townships as low-density. In Manyangone Township, Parami, 7 mile, Shwe Hnin Si and Aye One quarters have been designated as exclusively residential areas.

Among the downtown townships, Lanmadaw will allow mid-sized buildings, while in the region around Sule Pagoda buildings cannot exceed a height of 160 feet (49 metres) above sea level, or 100 feet in the surrounding heritage area. Other townships will allow mixed-use structures.