Following Myanmar Government’s decision to permit three-year lease to owners, the land prices in downtown Yangon have continued to spiral upwards. The price for one square foot can cost up to US$ 800.
In an article in Mizzima, Khin Maung Aye, an executive with the Myanmar Real Estate Brokers’ Association Information Department, was quoted saying, “to sustain the urgent demand trend for office space due to foreign investors inundating the country, buyers are now speculating on land in the former capital's central business district earmarked for high-grade condominium buildings.”
According to an agent at Shwe Kan Myay Real Estate, currently, a standard 100 by 100 feet condominium can cost a buyer around US$ 8 million. The prices of property in this developing country are the same as real estate prices of major cities in developed countries across the globe.
The premier buildings in the country, including Sakura Tower and Sule Business Center, are occupied by foreign investors according to Mizzima. Yangon’s office space is limited and the demand continues to outstrip supply.
The question now is – how long will this overwhelming demand support price hikes? According to the Bangkok Post several well-off landowners in prime real estate areas are holding out for higher prices, however, some buyers have already reached their limit.
CMT’s 2nd Myanmar Real Estate Summit (MRES) 2013, being held on 30 Sep-01 Oct, 2013 in Yangon, throws light on land ownership, pricing structure, zoning regulations and many more.
Myanmar’s economic developments have spurred an onset of property projects and investment opportunities. International companies of various sectors are rushing to enter the Myanmar market, and this trend is expected to continue to grow, causing a strain on office and residential spaces. The gap between demand and supply in property is likely to persist over the next two years, prompting developers to enter Myanmar.
Singapore-listed property developer, Yoma Strategic Holdings, has since tapped on this opportunity presented by the new Asia frontier, with its expansion plans in Yangon involving the development of more hotels, office buildings and large-scale residential properties.
Currently, Yoma is building the 135-acre Star City six mils southeast of downtown Yangon. Targeted at Myanmar’s middle-class population, the development includes 9,000 units of apartments as well as a retail area.
In an interview with Bloomberg Television, CEO Andrew Rickards stated their intentions in going into “commercial buildings, office buildings, hotels, all of which are desperately needed in Yangon”. Emphasizing on the sector’s importance, Rickards highlighted that property will remain the “only investible asset” in Myanmar.
CMT’s upcoming 2nd Myanmar Real Estate Summit in Yangon, September 30 to October 1, 2013, will see Cyrus Pun, Executive Director of Yoma, join as a key panelist. For more information on his session and other speakers, please visit the Event Page or contact Ms. Grace at firstname.lastname@example.org or Tel. +65 6346 9147.