Saturday, 3 August 2013

Sky-high real estate prices hinder foreign investments - MIC

Myanmar's sky-high real estate prices may dissuade new foreign investors, according to sources from Myanmar Investment Commission (MIC).
"Currently the real estate prices are very high in the country. It may be a hindrance for foreign investments coming to the country. We have said often that the real estate prices in Yangon are higher than those of New York (the US). So the government is working now on policies to handle that issue," said Aung Naing Oo, head of the Directorate of Investment and Company Administration.


Condominium rentals are also on the rise along with the real estate, according to sources from local brokerage firms.

"Monthly rent for a normal condo flat is around 1 million kyats (around 1,030 US$). There are also condo rooms for the equivalent of US$2000 to 5000 a month. If a room is a little old, the monthly rent may be between 0.6 million and 0.8 million kyats (around 618 and 824 US$). The rents went up within a year," said a Yangon broker.

During this monsoon, the prices didn't go down even though the real estate market has been inactive for a while. Yangon's townships such as Yankin, Thingangyun, Thuwunna, South Okkalapa, New Dagon and Shwe Paukkan are still the most popular neighbourhoods.

"There are buyers for real estate in those townships. The prices range between 20 million and 50 million kyats (around 2,060 and 5,154 US$) for a property 40 × 60 ft wide there," said a local broker.
 
source: Eleven Myanmar

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