August 19, 2016

Yangon’s suburban property market slumps

A construction site seen in Dagon Myothit.
A construction site seen in Dagon Myothit.

The property market within the suburban outskirts of Yangon (Myanmar’s commercial capital) has subsided of late, according to real-estate agents, induced by a fall in property prices.
Ko Aung Thura, a broker of Aung Yadana Real Estate Agency situated in Dagon Myothit (South), says property prices in the city’s suburbs depreciated in the wake of transition to a new government following last year’s general elections, with expensive house prices during the tenure of the erstwhile government reportedly even beyond the reach of most businessmen.
“The current property market has slowed down because of changes to the political landscape. Previously, a plot of land on either side of a main road sold for between K50-60 million, approaching K70 or 80 million. But now, such a plot may only fetch around a meager K30 million,” he said.
A fall in property prices depresses the market as property dealers hold out, waiting for the time when prices will shoot back up again to trade.
U Wai Yan, a property analyst from Dagon Myothit (North), has expressed the situation of the property market in Dagon Myothit (North) used to be similar to that of its southern cousin, Dagon Myothit (South).
“A plot of 40’ x 60’ land in North Dagon last year shot over the K100 million price mark. Now, though, and we’re faced with a situation where prices are falling as sales wane. Land prices used to be exorbitantly high during the previous government’s term in office, while the market is currently still subdued since the swearing in of a new democratic government,” he said.
Yangon’s suburban property market was difficult to control during the former government’s administration, while real estate agents and market analysts speculate that this current four-month long lull in the market, in the wake of a new government, might pick up with the onset of 2017.


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