Residents are attracted to North Dagon by large compounds and low prices. Pic: The Myanmar Times Archive

YANGON residents are increasingly looking to outlying suburbs when buying their next home, according to real estate agents.

Townships that were once sparsely populated like North Dagon and Hlaing Tharyar have attracted new buyers with low prices and improved infrastructure. But families are also moving to outlying suburbs for the lifestyle advantages, said U Hein Zan Aung, assistant manager of Sein Khon Naung Co Ltd real estate agency.

“Interest in properties in the Shwe Pin Lon housing project in North Dagon township has increased since April and May this year. In my opinion this is because families can have a large compound at a cheaper price than near the downtown area, while still being close to an acceptable transportation system,” he said.

He said that most of the properties in the housing complex still have sixty years left on the lease and prices range from K80 million to K120 million, according to their area and location.

Dr Khin Maung Maung, who has live in Mahar Mying housing estate in North Dagon township for the past eight years, agreed local amenities and price were the most important factors when he was deciding where to settle his family.

He said North Dagon is appealing because it is not far from central Yangon, its relatively cheap and has good basic services – transportation, electricity and water.

“We have seen progress in the area over the past eight years. The area has become more busy each day with more families buying up and shops and some internet cafes being established. There were many vacancies when we started living in this estate, which has about 2000 apartments. But all are occupied nowadays,” he said.

He said property prices in the area had increased significantly and the cheapest apartment eight years ago had increased in value at least six times over.

U Maung Maung Mya, managing director of the Kyal Su Thit real estate said demand for properties in North Dagon township had increased 25 to 40 percent this year.

“The most sought after areas are near the main roads such as Pinlon, Pyihtaungsu, U Wisaya, Bo Min Yaung, where there are many shops and you can catch the bus,” he said.

He said land in North Dagon was once usually bought as an investment but now most purchases were made by families who wanted to settle here, attributing the change to population growth.

He said that the large sized blocks, public transport links and the atmosphere of the area, which is now mainly middle class, has helped attract new buyers.
Not all outlying townships have capitalised on the trend. Daw Khin San Yi of Yadana Myay Real Estate, in Dagon Myo Thit Seikkan township, said the township was being held back by a lack of infrastructure.

“The market is not growing as in other areas. Most of the properties here are very basic and low cost,” she said.

She said that there have been few high rise developments in the area but that could change if more investment was made in infrastructure.

U Tun Min Latt, real estate agent at FMI city in Hlaing Tharyar township, said the occupancy rate of properties such as condos and detached houses has risen to 70-80pc this year.

“I think people like to live here because they can get decent standard facilities, services and a peaceful lifestyle at a much cheaper price than in the downtown area,” he said.

It is not unusual for downtown house owners to sell up and move to outlying townships like Hlaing Tharyar, he said, because the price difference is significant and the property compounds are larger.

U Tun Min Latt said the price range for a detached house in a compound of 2400, 4800 and 6400 square feet can vary from K42 million to K160 million.
Real estate agents said they are confident outlying suburbs with good infrastructure will remain popular as long as prices remain low.

They said that population growth was also helping growth in Yangon’s outer suburbs.