Thursday, 13 December 2012

Myanmar invites tenders for housing projects

The Myanmar government is seeking bids for two housing projects to build 10,000 apartments in Dagon Seikkan Township in Yangon.

The Department of Human Settlement and Housing Development (DHSHD) said it will be selecting the companies that will meet the standards of the Committee for Quality Control of High-rise Building Projects Construction.


“Tenders will be invited in December for the two new housing projects--Ayeya Wun and Yadana. Local companies or joint ventures with foreign companies can submit tenders,” a department official said.

The official said the two new housing projects will be divided into three levels based on the families’ incomes.

The Yangon Region government also announced the construction of over 120,000 apartments in the area with the help of local and foreign investors.

The Yangon City Development Committee is aiming to finish the construction of over 9,500 affordable apartments by 2015.

“Construction of cheap apartments will require lands and funds from the government. [But it could also be done through] long-term loans with low interest rates,” Yangon Mayor Hla Myint said.

High prices

Soe Thein, chairman of the Myanmar Investment Commission, said earlier this year that the commission would do everything in its capacity to ensure that land lease rates will drop.

A property agent said there is a remote chance for the middle class to have a decent house of their own. Property prices skyrocket, for instance, when giant companies buy farmlands at low prices and sell them at obscene profits.

Dr. Maung Maung Lay of the Union of Myanmar Federation of Chambers of Commerce and Industry said soaring prices are obstacles to local and foreign investors.

Last year saw unusually big price jumps in Yangon as well as in other economic hubs and coastal regions where hotel projects are.

The growing population in Yangon, a broker said, has also led to higher rental fees, up by 10 to 50 per cent.

A street vendor said his landlord increased the rent from 12,000 kyats (US$14) a month to 20,000 ($23) a month, an amount he cannot afford.

As a commercial city, Yangon has now a population of 6 million, which is likely to hit 10 million by 2020. At this rate of population growth, the city will need about 100,000 more apartments within 10 years.
 
source: Eleven Myanmar

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