Foreigners are waiting for Parliament to pass the condominium law as they are more interested in buying condo and apartments compared to other types of accommodations in Myanmar, according to the construction companies in Yangon.
The Japanese investors also showed great interest in buying condominiums, they said.
Most of the foreigners, who have been living here for a long time, rent condominium apartments rather than stay at hotels.
A high number of foreigners have recently arrived in the country for
investments and business projects in the country as the United States
and European Unions eased sanctions against Myanmar to support its
reform process.
Those foreigners prefer buying condo apartments to lands and other types of houses for a number of reasons.
“Foreigners don’t buy other houses, because their sales contract is
just signed by the buyer and seller. The government doesn’t acknowledge
it. In other countries, government legalizes the sales contract and
acknowledges the ownership. When the condominium law comes out, the
foreigners may be able to buy condo apartments obtaining ownership. So,
they are waiting for the law,” an executive from Shine Construction
said.
“Now, foreigners are interested in even those condominiums which are
located in [the suburban townships of Yangon] Kamayut, Hlaing and
Mayangone. But it is difficult as the condominium law hasn’t come out,”
he added.
High price of lands for foreigners is another reason for their growing interest in buying condo.
“In my condo, some foreigners rent apartments for years. Many of them
are interested in buying the condo apartments. They are waiting for the
condo law. Once the law is passed, condominium prices will rise,” Ma
Thet Thet Naing, Director of Asia Express Company which built Pearl
Condo in Yangon said.
Myanmar officials have drafted the condominium law, but the
Parliament has yet to approve the bill. It will allow the foreigners to
buy those apartments on sixth floor and higher than that of the
buildings. The bill also includes the section for the sales contract to
be acknowledged by the government. Condominiums will also be allowed to
be used as collaterals when borrowing loans and debentures from banks,
according to the bill.
In Star City Housing Project near Thilawa Special Economic Zone in
Thanhlyn township, Japanese, US and UK companies are planning to buy
condo apartments to open their offices, and the Japanese are explicit
about their interest, Gabriel Cheng, Project’s Director of Sales and
Marketing, said.
In Yangon, a square feet of condo apartment is currently around
150,000 to 200,000 kyats (US$220) depending on location. Some foreigners
said condominiums in Myanmar are still more expensive compared to
international prices.
Condo prices differ according to the facilities it provides such as
swimming pool, parking, and garden. An average condo apartment on Pyay
road is around 570 million kyats (US$647,000), according to the
construction companies.
source: Eleven Myanmar
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