November 21, 2017

A glance at property market in Yangon

Yangon’s property market is waiting for condominium law for booming. Photo: Phoe khwar

Yangon, once famous as the seat of government, has turned itself into economic hub of the country, and is home to nearly seven million people.
Currently housing sales in Yangon slipped but some spots are active. Property entrepreneurs are waiting for enacting of Property Law which has emerged in all countries in Southeast Asia except Myanmar and Brunei. As the Condominium Law is expected to emerge soon, it is expected to see the bouncing back of the property market which depends much on the country’s economic trends.
The written quotation in property market is skyrocketing but on ground the it is less than the quotation. For example, the quotation for one square feet space on Pyay Road, one of the main roads in Yangon, stands from Ks 800,000 to 900,000, but in reality most of the deals end around Ks 600,000,. As the prices are not lower than ten digits, owning a house in Yangon is just a daydream for an ordinary family.
Regarding the matter of residing of foreigners in Yangon, one of the property agents expressed his view saying that there is very rare to see the real condominium in Yangon and that if foreigners have a chance to buy a property they will not choose to rent a house but to buy one. He continued that currently renting is booming more than buying.
According to CEO U Myo Myint Aung of Zalatpwint Property Company, the business reached its peak after 2000, and 2003 is the heyday of the business. But according to market theories, the booming business will be down if there are abnormal activities in the market which all the people have witnessed in mobile phone or car markets, he said. Not to be too much egocentric, all are to consider the image of the country and all are to think about the future of the country, the entrepreneur said.
For foreign investors’ part, they are comparing property price, availability of power and stable laws with other Southeast Asia countries and are reluctant to invest in the golden land and rush to a place where there are more opportunities.
One of the problems in the business is, he said, the ownership which is very much complicated. Before buying a house or a plot one should go to the relevant office whether the ownership is true or not.
There also are words of authorities to lower the tax. As the previous government raised the property tax, the government did not receive these taxes which should be gone into its treasure-house. And there was a dramatic difference between 2015 and 2016 tax collection. One of the parts that should be taken into consideration in the business is the brokers or agents. There are laws for agents in neighbouring countries. Responsibilities and accountabilities of the agents are enshrined in these laws, the buyers have assurances and they cannot face extremely high price or cannot be subject to harm.
Another problem is that there may be lack of confidence between land owners and the contractors. In some cases, the contractors leave the business without abiding by the laws and they must be sued but the land owners become the victims who know nothing about the business. This is very harmful to them.
Although there are property markets of renting and selling, there also are homeless people and squatters in town. Lower income and skyrocketing property prices are barriers between the seller and the buyer.
Water Bus service available soon
Yangon Region Transport Authority said that water buses will be plying in rivers and creeks in Yangon in the month of July.
Although the business is to be run in June, the facilities to be imported have not reached and the scheduled has to be changed.
The first line of Yangon Water Bus will be from Yangon to Hlaingtharyar via Insein disclosed Daw Tint Tint Lwin who is the chairperson of Tint Tint Myanmar Group Companies which won tender for running the business.
There will be three journeys: from Hlaingtharyar to Yangon will be the first ever one; the journey to Thanlyin’s Star City; and from Dagon Myothit (North) near Bailey Bridge to Botataung in downtown Yangon.
As there will be three different watercourses, the type of boats will be different. These three or four types of boats are ordered from Australia, built in Thailand and Myanmar, the chairperson said.
Along the journey, the stopovers will be near Insein suspension bridge, Bayintnaung Bridge, FMI housing, Hline Station Road, Kyimyindaing (Market Bridge), Lathar (Lanthit Bridge), Pansodan (Nan Thidar) and Botahtaung (No.4 Bridge). At the bank of the stopovers, ticket booths and bike racks will be established and snack shops will be opened on the boats. For passengers, ticket system will be introduced first and later this system will be expanded to card system and online system. As soon as boats arrive from Australia and Thailand, the trips will be started.
Daw Tint Tint Lwin said at a press conference that any boats can be used for Hlaingtharyar-Botataung trip and boats to be used for the trip are ordered from Australia. For trips in Ngamoeyeik Cree, small boats will be used because there are sandbanks and sand carriers along the route. The coastal boat type will be used for the route to Thanlying Star City.
Special attention is being paid to passengers’ safety by the Public Transport Authority. The control centre will apply GPS system used in Hungary to control the boat speed by warning the boat operator and rescue teams are also organized for emergencies.

 

By Htin Paw Win
(Kamaryut)

(Translated by Wallace)

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