SINGAPORE is the top destination for Myanmar’s emigrants and its property market offers considerable investment potential, said one Yangon-based real estate agent and several investors last week.

U Zaw Tun Naing, Myanmar representative for Singapore-based ERA Real Estate, said the city state has excellent investment potential and is attracting plenty of interest from wealthy Myanmar people.

“Singapore offers high rents, good profit margins and a mortgage system that attracts many overseas investors, including plenty from Myanmar,” he said.

Singapore’s high living standards and top-rate health and education systems are well known but U Zaw Tun Naing said the banking system allows non-residents to take out long-term home loans at relatively affordable interest rates. All they must do is pay 30 percent of the loan up front, or even less if they qualify as a permanent resident. These loans must then be paid back within 35 years, usually at an annual interest rate of about 4pc.

He said this enables buyers to rent out their property to help cover the cost of the mortgage, while the property increases in value, which makes it an attractive proposition.

He said that standard Housing Development Board (HDB) flats are cheap and land in the Sentosa region tend to be popular with foreigner investors.

“Anyone is allowed to buy condos but they are not always cheap, while HDB flats are affordable and available if two members of the family are permanent residents,” he said.

U Zaw Tun Naing said that the prices for HDB flats vary from S$100,000 to $400,000 (about US$71,000-$285,000) and condominium prices from $400,000 up to $1 million.

He said that business people more interest to invest in condos and buyers must prove their income, a copy of their passport and a tax clearance.

Singapore resident U Khin Maung said he bought a Housing Development Board flat in Singapore in 2003 and believes he made the right decision to invest because he can recover much of his costs by renting out rooms. Better yet, he expects to make a lump sum when he eventually sells the flat.

As a permanent resident of Singapore, U Khin Maung said he qualified for a loan that covered 90pc of the flat’s cost.

Another condo owner, Ko Tay Zar Aung, said the loan system attracted him to buy property in Singapore because he did not immediately have to pay all of the costs himself.

“We only have to supply 30pc of the total cost up-front and rental returns easily cover that loan; I sometimes earn more than enough cover the loan,” he said.
He also said that if the market increases in value from 15pc to 30pc, his revenues will increase from 50pc to 100pc.

And for those already in the market, or perhaps planning to invest, the future looks bright.

Ma Pan Pan, 24, who studies in Singapore, said that rent prices in Singapore have already increased.

“We have to pay $1500 a month for a 1500-square-foot flat with two bedrooms. But last year we were only paying $1200,” she said.

She added that people choose locations close to their work or school, even though Singapore’s public transport system is quick and efficient.