Agents at Pan Thakin on 49th street in downtown Yangon wait for customers last week.

REAL estate companies are looking to next month’s Thadingyut festival to perk up a flagging August property market, industry observers say.

After a busy June and July, August has found the property market somewhat becalmed, with both buyers and sellers confused about the direction of trends and the effects of a recent property auction.

U Bo Bo Kyaw, manager of Sai Khung Naung real estate, told The Myanmar Times: “People make inquiries and look at houses, but deals are rare. One factor is the religious season of Lent,” he said. Market conditions this year were unstable, he added, sowing confusion between buyers and sellers.

“We face more fluctuation this year. Some buyers and sellers get confused and lose sight of market conditions,” he said. Sellers were asking high prices thinking the market was rising, while would-be buyers, convinced that it was falling, kept their offers low. “That’s the main reason why some deals are falling through,” he said.

U Bo Bo Kyaw says he expects upward movement around Thadingyut, when rentals and sales traditionally improve.

U Min Min Soe of (Mya) Pan Thakin said their company was also waiting for a Thadingyut boost. “Our clients were down by two thirds in August. There are only a few rent deals for offices and hostels. We hope rental rates will double after Thadingyut as they usually do,” he said.

Real estate agent Daw Nan Than Yi said the government property auction had affected the property market more this year than before.

“No one noticed any effect on the market last August from the auction. But the auction has significantly slowed sales this past month. In my opinion, the situation is just temporary. Renting and buying offers will be better after Thadingyut,” she said.

U La Win Tun, manager of Asia Land real estate, agrees that the auction has drawn the attention of investors, and some might be waiting to see what was on offer in the next auction.

“That’s why market is stagnant right now, but prices are not down. It’s just that only essential deals are being made, in both renting and buying,” he said, adding that he thought inquiries this August were about 20-30pc down on levels for June and July.