DEMAND for land in the real estate market has increased following the tax reduction announcement in August said real estate agents last week.

“The demand and supply balance in the market is now better because some clients prefer not to show the source of funds for purchases and they now benefit from a lower tax levy,” said Daw Thiri Theint Theint, manager from Pyae Wa Real Estate and General Services.

She said she expects more demand in the market because land is the best investment and land values will always rise over time.

“Land traditionally holds its value, it does not require much maintenance and it is secure, which is why people are interested in investing in it,” she said.

She said that vacant land lots in the Hlaing, Kamayut and Mayangone townships are sought after and some of the high class locations are also in short supply.

She said that demand in the apartment rentals market was strongest in the six downtown townships of Lanmadaw, Latha, Pabedan, Botahtaung, Pazundaung and Kyauktada.

“Increased demand in the market is related to the end of Buddhist lent because many people avoid moving home during that period,” she said.
She said that although the prices of properties in the nice locations have increased a little, there is no overall high inflation in the market.

She said in warehouse rentals the rate is firm with more demand in the market and business people are also choosing various locations in the industrial zones according to their trade.

U Sai Khung Noung, managing director from Sai Khung Noung Co. Ltd, said that land located with good communications and trans-portation services within the jurisdiction of Yangon City Development Committee will always have market demand.

“Land priced in the range of K100 million to K140 million in Yankin Township and detached houses in Thanlwin Road, Windermere, and some housing projects such as Thu Mingalar and Shwe Pin Lon, have greater demand,” he said.

He said that some sellers have reset their asking prices and some have withdrawn their properties from the market in expectation of higher valuations.
He also said that people are more interested in the real estate market because other investments such as cars and gold are experiencing price volatility and the property tax changes are attracting people back into the market.

U Zaw Zaw , manager from Unity Real Estate Services Co. Ltd, said that although supply generally exceeds demand, land in Mayangone, Bahan, Thingangyun and South Okkalapa townships within the price range of K100 million to K140 million is sought after.

“People want to put their money in a firm investment and tax reductions are the main factors behind a better market,” he said.

He said that land sales are quite rare in the commercial area and also landowners near the diplomatic areas in Ahlone and Dagon townships do not let their property go because of good location.

“Detached houses within the price range of K200 million and K300 million in Thuwanna, South Okkalapa and Thingangyun townships and apartments in the six downtown areas and Mingalar Taung Nyunt, Ahlone and Sanchaung townships are also easier to sell,” U Zaw Zaw said.

He said there is demand for the standard condos and also for warehouses.
The Ministry of Finance and Revenue announced on August 12 that taxes are reduced for buyers who do not show their source of income to 15 per cent (eight pc tax and seven pc stamp duty) for property valued below K5 billion and 12pc (five pc tax and seven pc stamp duty) for property above K 5 billion.

Previously, 50pc tax was levied on buyers not disclosing their sources of income for purchases. The situation for purchasers who do disclose their sources of income is unchanged: they continue to pay 7pc stamp duty and no tax.