August 19, 2016

Mandalay rental rates shoot up

Motorcyclists are seen in Mandalay . Photo: Myitmakah News Agency
Motorcyclists are seen in Mandalay . Photo: Myitmakah News Agency

ACCORDING to real estate brokers in Mandalay, there has been a distinct increase in the price of rentals in the city over the last three years due to a rise in the number of business entrepreneurs and workers from the countryside descending upon the city in search of employment.
The prices of rental properties in Mandalay in 2013 ranged between K100,000 and K800,000, whereas now, the pricing spectrum has shifted to between K200,000 and K1 million.
“Depending on the location, it’s rare to find a ground-floor flat in the city for less than K200,000 a month. Prices are slowly going up year upon year. Homeowners are also increasing the prices of their properties by around 10 percent each year, too,” said Ko Hset Hpi, a Mandalay real estate broker.
A ground-floor apartment located near Mandalay University, the central train station or the moat of the Mandalay Palace can cost between K500,000 and K1.2 million per month, with a first-floor property going for considerably less at K300,000per month. Properties on the edge of town are more affordable at around K200,000, but they are hard to fill, say real estate brokers.
“Rental properties in the centre of the city are narrow, but those who can afford them will rent them regardless. There’s a great proliferation of working-class people renting outside the perimeters of the city,” said Ko Aung Htay, another real estate broker.
In a similar manner to rising rental prices within the city, a trend is present in areas outside Mandalay, such as in Ayeyar Htun and sections of the New City housing area, where a month’s rent in the past was once K40,000 but now costs K60,000.
“The New City is spacious. Properties with bamboo walls  incur monthly rents in the tens of thousands, and brick-walled properties in the hundreds of thousands. The prices are increasing year after year. For my house, for example, I paid K30,000 a month when I first started renting but am now paying double that,” said Ko Gyo Thar, a real estate broker from the New City.
Local residents say the government must provide affordable rental housing to those who cannot afford housing in the increasingly expensive city.—Myitmakha News Agency


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