August 20, 2016

Foreign investment in Dawei drives up land and rental prices

THE arrival of foreign investment enterprises into the capital of Myanmar’s southern Tanintharyi Region, Dawei, have caused the price of land and housing rentals to increase, according to those involved in the local real estate businesses.
There has been a slow rise in prices within the Dawei real estate market since 2012, but the arrival of foreign investors to the sleepy southern town during this year has accelerated that trend.
“Land prices have been creeping up for three or four years. But this year, the resurfacing of roads within the town and the arrival of Chinese and Thai construction enterprises have seen a distinct hike in the price of land.” said U Ba Myint, a local property agent.
The rental market in Dawei back in 2012 was almost non-existent. Four years on however, and the market is showing signs of business opportunities.
“There was nearly nothing to the housing rental market [in Dawei] before. Starting from the end of 2014 though we got distinctly more business. And now, with a good road connecting the town with Yangon, we are sure to see an onslaught of business folk arriving in the town.” said Ko Soe, a local real estate broker.
With such a poor housing rental market in Dawei in the past, the majority of rentals were for spaces in shared dormitories.
Just like the price of land along Hnit Pan and Ye roads, along the left hand side of the main thoroughfare though the town would fetch approximately K7 million back in 2013, whereas the current price for the same land is going for over K10 million. Of apartment rentals, while a few years ago an apartment would cost around K45,000 a month, they are now priced at over double that rate.
According to those involved in local tourism enterprises, this year has also seen a surge in foreign tourists visiting Dawei.
Construction on the Dawei deep seat project by a Thai-Italian firm, which is believed will be the largest industrial zone in South East Asia, has been put on hold since 2013 but the arrival of foreign investors into the town which are connected to the project has had an impact on the local property market.—Myitmakha News Agency


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