Real estate agensts say demand for apartments in downtown Yangon is helping the city's property market to bounce back after two flat years. Pic: Aye Zaw Myo

YANGON’S property market – depressed since the administrative shift in November 2005 – appears to be bouncing back, according to several local real estate agents.

According to real estate agents who spoke to The Myanmar Times, sales and leases have been steadily increasing since the end of water festival in April.

“This is a very good time for real estate agents. We are busy again and customers have been coming in to the office every day this month,” said Daw Nan Than Yi, general manager of Pan Tha Khin real estate agency.

Before the end of water festival, Daw Nan Than Yi’s company had sold or rented only two houses and five apartments but since then things have turned around – to the tune of four houses and 10 apartments sold or leased.

In the same period rival business, Mun Daing real estate, sold or leased 10 houses and 15 apartments, up from only three houses and seven apartments before water festival.

Another company, Unity real estate company, reported a more modest increase of 25 percent.

The property market had been flat since late 2005 when the government shifted to the new administrative centre in Nay Pyi Taw. Real estate agents said that sales had been rare and only lingering rental demand kept them afloat.

But that trend appears to have reversed in recent months, with agents enjoying at least a temporary revival.

Daw Nan Than Yi said a resurgent economy is behind the rise in demand for property.

“I think people are enjoying more spending power at the moment and turning their interest towards property investment,” she said.

Sources close to the industry said the revived used car sales market had contributed to the rekindled interest in the property market. A recent government announcement quashed rumours that older cars were going to be banned in Yangon, which immediately led to a flurry of trading and speculation in that market and left some traders with money to burn. According to sources close to both industries, profits from car trading have now been channelled into property.

U Than Oo, managing director of Mun Daing real estate agency, agreed with Daw Nan Than Yi that the economy seems to be in better shape.

“Real estate markets around the world rely on a good economy that enables people to spend more money safely. Now our economy is getting better and the property market is busy again,” he said with obvious relief.

“People basically know that the property market guarantees a good return on their money. However, they obviously can’t invest in property when they don’t have any money,” he said.

According to Yangon real estate agents, the busiest areas in the market are downtown, Bahan, Yankin and Mayangone townships. They said demand for both houses and apartments is increasing.

Daw Nan Than Yi said houses priced between K200 and K400 million in Yankin and Bahan townships are the most sought-after, while apartments in the K20 to K40 million price range downtown are also popular.

U Than Oo said agents should cooperate to avoid over-pricing properties, which might lead the market to stagnate again.

“People sometimes inflate property values when demand increases but we – as real estate agents – should try to convince clients to sell their houses at the right price,” he said.