Monday, July 24, 2017

SEZ project driving prices for land upward

The groundbreaking of the 400-hectare Thilawa Special Economic Zone (SEZ) last month has speculative land- owners increasing property prices by as much as 1000 percent in adjacent areas.

In Thanlyin township, across the Bago River near the SEZ, property owners are asking for anywhere between K10 million to K100 million for a 40-by-60 foot (12-by-18 metre) block, up from just K2 million and K5 million not two months ago, realtors said.

Land plot owners in other areas on the outskirts of Thanlyin township are also raising their prices. A plot that is 30 feet by 60 feet, valued at K400,000 one year ago, is being put on the market for as much as K4 million today.

U Yan Aung, real estate agent at Sai Khon Naung, said the marked increase has been driven largely by speculation as demand for land in Thanlyin will remain small while the SEZ and the 420-acre luxury housing project, Star City, are still in the early construction phase.

“Although the property prices are high now, there is no demand,” he said, adding that potential buyers will likely wait and see how progress goes on the nearby projects before moving in.

“Once these projects are im-

plemented successfully, the result

will be that Thanlyin real estate

prices will be even higher,” he said.

Ma Tharaphy, a resident of Thanlyin for the past 20 years, said the increase in prices could be good news for property owners, but residents have yet to see the area improve in terms of infrastructure.

“There is no electricity, so the villagers in the [outlying regions] of the township are not okay,” she said.

Residential properties inside Star City have been selling for about K250 million (USD$250,000), while land inside the Thilawa SEZ is now valued at about K200 million (US$200,000) per acre since construction began.