Frequently shunned by renters wanting to be closer to the hectic downtown grid, the northern townships of Insein and Shwe Pyithar boast landed property available for purchase or rent from as low as K500,000 a month.
“Property prices were soaring in Yangon, but rising only gradually in Insein and Shwe Pyi Thar. The demand there is less than in other townships,” said Ko Htun Htun, speculator at Phoenix real estate agency.
The low demand in these two townships is from a failure by prospective property owners and tenants to see the investment potential of the leafy area, he added.
Land is valued at about K130,000 per square foot in the townships, with some land going for as little as K110,000 for one square foot. The average price of a landed house in Insein township is K60 million for 2013.
“In Shwe Pyi Thar, people are not buying land or houses. But it is an industrial zone so the rental market is good,” Ko Htun Htun added. “While Yangon property prices are rising, the Shwe Pyi Thar market is stable.”
Neighbouring Insein township has seen rising property and rental prices in the last year, he highlighted.
Last year, the purchase price of house and land plots located on lanes used to be about K3 million but prices rose over 2013 to about K5 million. House and land packages fronting main roads are selling for between K100 million and K300 million for 15,000-square-foot blocks in 2013.
Rentals range from K500,000 to K1million for a house and land property in Insein.
The property market remains fairly stable compared to the skyrocketing prices seen in other townships closer to downtown, with prices generally being driven by foreign demand.
“If you have K500,000 or K1 million you can rent a good house in Insein. But foreigners never rent in here because they like downtown,” U Aung Soe Moe from Asia Land Real Estate told The Myanmar Times.
Local Myanmar renters are capitalising on the cheap rents, although the outlying locations coupled with the lack of effective transport infrastructure in Yangon make it difficult for residents of the Insein and Shwe Pyithar townships to conduct regular business in the downtown grid, real estate agent Daw Zin Myo Naing said.
But, for renters or prospective property buyers looking for big houses with gardens at affordable prices, the two townships are a perfect option “Even though the property market is slow in Insein township, some places such as Japan Road, Lower Mingaladon Road and Baho Road are starting to see increasing demand for good properties,” Daw Zin Myo Naing said. “These places exist along the main road and near the Yangon airport so the property market there is good.”
source: The Myanmar Times
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