You can read daily news of Global New Light of Myanmar using mobile applications. Download now!

May 26, 2019

Condo market slightly active in Yangon

Price of condominium units is not likely to decrease in Yangon. Photo: Pwint Thitsar

The condominium market has picked up in Yangon Region, according to real estate entrepreneurs. The price of high-rise condominium units is not likely to decline as construction costs have increased, they said.
“In the condominium market, buyers have to deposit 30 per cent of the price. Now, they are safe from being cheated because they have to deposit the advance payment with the registrar of the Yangon Condominium Management Committee through the developer concerned. After the condominium rules have been promulgated, the Yangon regional government will make arrangements to enact the Apartment Law and the Housing Building Law. So, the real estate market will become active again in future, too. And, the fact is that only real estate entrepreneurs can implement high-rise condominium projects,” said a veteran high-rise condominium construction entrepreneur.
“The application process for the construction of high-rise condominiums takes at least one year. So, there are only a few entrepreneurs who are motivated to construct high-rise condos because it takes five or six years to complete the whole project,” said U Than Naing, a construction entrepreneur.
“This is a good time to purchase condo units. In our country, people do not like to buy condo units when their price is on the decline. They wait for a time when there are signs that the price of condo units will rise again. If that happens, they rush to purchase condo apartments. Despite the decline in supply, the demand has not risen because buyers are not aware that there will be no new condo projects for the next three years as the construction market has been suspended,” he said.
The license fee to construct a condominium building is K10 million. The Yangon Condominium Management Committee (YCMC) has announced that the registration fee for a condo unit will be K20,000 for units worth over K100 million, K30,000 for condos priced in the range of K100 million to 300 million, and K50,000 for unit worth over K300 million.
“There are around 1,000 construction contractors in Yangon Region. However, there are just over a 100 high-rise condo developers. The Union Government promulgated the Condo Law in December, 2018. The YCMC was formed in 2019,” according to high-rise condo construction entrepreneurs.— Pwint Thitsar
(Translated by Hay Mar)

Comments

Related posts