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December 12, 2019

Little danger of Yangon’s housing bubble deflating soon, say market experts

Photo of a building under construction and workers near downtown Yangon.
Photo of a building under construction and workers near downtown Yangon.

Despite dire predictions of the imminent bursting of the Yangon property bubble, some housing agents and experts have rejected the hypothesis that Yangon’s real estate boom is about to burst.
Although housing prices skyrocketed in many parts of Yangon, the country’s commercial city, in the past few years, the overheated property market has cooled with sales slumping since the start of this year.
But housing prices remain unchanged.
“I don’t believe the forecasts on the property market, which is stalling, may cause housing bubbles to burst,” Yangon-based economist U Khin Maung Nyo told The Global New Light of Myanmar.
“House sales might be muted this month compared to last month. There may be a seemingly stagnant property market over a few months, but it is impossible to exert downward pressure on prices in the market”, he said.
“Despite slowing sales in the real estate market triggered by various measures to cool down the escalating housing prices, it is hard to see that there will be a drop in prices in the housing market this year,” a senior property agent added.
Defending his belief, U Khin Maung Nyo pointed out no one wants to put their invested property on sale at low prices immediately as lands are irreplaceable. “Myanmar’s economy is expected to continue to grow and the country is also expecting to more see vast throng of foreign investors in a range of sectors, including construction and hospitality, he continued.
Despite seeing increased interest in the booming property market, foreign developers and potential investors who are gathering information about the market tend to hesitate for an appropriate amount of time, some sources said.
Strengthening some of the rules and regulations in connection with property rights will help Myanmar draw more foreign direct investment and improve its commercial and tourism infrastructure, VDB Loi, an international legal and tax advisory firm based in Yangon and Nay Pyi Taw noted in a press release on the regulatory framework for foreign investment in Myanmar last year.

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