June 29, 2017

Breaking News

Realtors, experts see little impact from planned launch of stock exchange

DESPITE predictions that the country’s property market will be strengthened by next month’s opening of the Yangon Stock Exchange, some realtors and experts have doubts as to whether the stock exchange will have any impact at all.
“No immediate impact on the real estate sector can be seen because Myanmar people are unfamiliar with the country’s first stock market, or stock markets in general,” said Sai Khun Naung, a realtor.
The realtor stressed the need for the future government’s involvement in the provision of stable policies for the currently stalling property market, predicting that with effective policies, a bounce-back would occur.
“Myanmar’sreal estate sector will begin growing following the emergence of the new capital market for investors and developers,” Deputy Minister for Finance Dr Maung Maung Thein said during the question-and-answer session after his recent talk on the Yangon Stock Exchange and Myanmar’s economic development potential.
The deputy minister, who is also the chairman of the Securities and Exchange Commission of Myanmar, gave an example of how Vietnamese developers have invested in Myanmar’s property market, saying that their money came from selling shares on the stock market.
According to the deputy minister, the Yangon Stock Exchange is ready to begin trading and is tentatively scheduled to open on 9 December.
According to housing agents, the recent downward trend of the property market continues, with sales slumping by over 50 percent across the country. The situation has forced potential buyers as well as investors to become cautious—a poor indicator of market strength and positive potential.
The property market is not likely to have a significant impact on the planned launch of the new capital market, said realtors, predicting a possible drop in residential prices due to the introduction of new homes and condos to the market next year.
Compared to 2015 when, forvarious reasons, the market stagnated with a slump in both sales and rentals, the property market will be alive next year, said Managing Director U Nay Min Thu of iMyanmarHouse.com.
The current cooling trend for the real estate sector will rebound with a slight drop in housing prices expected to be triggered by a shift of public interest in investment in the new capital market, the managing director added.
According to developers, the country’s real estate market has the potential for remarkable profits and has been attracting not only business people but also individuals to invest in the sector since early 2013.
Sky rocketing land prices brought about the downward trend in the overheated property market. Sales and rentals have become sluggish, and the imminent bursting of the market bubble has been forecast since the start of this year.


Related posts

Translate »