People ride bicycles along a street in one of North Dagon township’s more upmarket areas, September 6. Pic: Hein Latt Aung

THE property market in North Dagon continues to pick up as the township’s population swells with new arrivals to Yangon city and people moving away from the downtown area to take advantage of lower prices and lifestyle options in the outlying suburb, a real estate agent dealing with the area said.

U Thet Moe Khaing, owner of the Kaung Thant agency that specialises in homes in North Dagon township, said sales through his agency had been increasing by about 10 percent a year since he started the business in 2002.

“We’re getting twice as many sales now as when we started the business because people can get 60-year land grants here for a single-story house with a compound for about K5 million,” said U Thet Moe Khaing, who lives in the township’s 34 Ward.

The most active area in the township is 33 Extension Ward, which is particularly popular with retired people, he added.

U Thet Moe Khaing said most sales were for single-storey wood dwellings with about 2400 square feet of land. Such properties are available for
K4-5 million.

U Than Oo, managing director of Mundine real estate agency, which caters mainly to homebuyers looking for more urban options but also lists some properties in Yangon’s remoter suburbs, said price was the biggest determining factor.

“Homes in North Dagon are affordable for most people because they are around K10 million,” he said.

For this price, he added, only a narrow, upper-level apartment in a cramped area could be bought downtown.

“In North Dagon, there are very few high-rise buildings and people prefer to live in separate compounds that can be used solely for residential purposes or to also accommodate a small home business,” U Than Oo said.

U Thet Moe Khaing said improvements in infrastructure were also drawing people to the area, especially to the popular 33 Extension Ward.

“Sales are more active in this district because infrastructure is better than it used to be. Nga Man Aung Street was completed in February 2006 so there is no need to take the long route through Pin Lon Road.

“But the real advantage is that people can easily get their own land cheaply and build a home according to what they want. That’s why sales are active,” U Thet Moe Khaing said.

“Sales will pick up even more after Buddhist Lent because people will be more likely to move out of downtown and use the extra money from their sales to invest in another business,” he added.

Myanmar people traditionally do not change houses during Buddhist Lent, which this year runs from July 29 to October 26.