May 3, 2011

Real estate in Yangon - the safest and most lucrative investment

PROPERTY is seen as the safest and most lucrative investment option open to buyers in Yangon, estate agents said last week.

“It’s not so easy to make fast money in property like you can trading gold, cars or commodities but it’s the most attractive investment open to those with money now,” said U Ko Ko Lay, the director of Three Friends Construction company.

Commercial real estate along main roads has skyrocketed in price since 2008, said Unity Real Estate’s manager, U Zaw Zaw. He added that prices in some places rose by between 20 and 40 percent through the 2010-11 financial year, which ended on March 31, with prices up by 85pc over 2008 levels.

He said prices along main roads such as Pyay and Kabar Aye Pagoda, particularly near the downtown area, have increased from between K200,000-K250,000 a square foot in 2008 up to K400,000-K500,000.

“Demand for property is already up in 2011 because people are trying to get themselves in position for foreign investment, which most people think will come soon. But they are also keeping an eye on the policies the new government is unveiling and there is a feeling that the returns from property trading will be better than putting the money in the bank or elsewhere,” he said.

U Min Min Soe, a spokesperson for Mya Pan Tha Khin Real Estate agency, said the increased focus on commercial land had a flow-on effect to nearby housing developments such as Mya Thida Housing in South Okkalapa township and Pinlone Housing in North Dagon townships.

“Formerly these areas have not seen much development and have not been popular with buyers but even prices there have climbed by 20 to 30pc since 2008,” he said.

He added that businesspeople searching for large plots of land to set up businesses are choosing Thaketa township or areas on Yangon’s outskirts because prices are so high closer to downtown.

Sales along the No 3 Main Road in Pearl township, near Shwe Pauk Kan Industrial Zone, are brisk and prices are climbing because they are close to the highway to Nay Pyi Taw, Mandalay and Bago. There are also large plots available to buy so some investors are trying to set up fuel filling stations, fish breeding ponds and truck parking lots, U Ko Ko Lay said.

He added that per-acre prices have risen by up to K150 million since 2008, rising from between K50 million and K100 million for farming and leasehold land respectively, up to K150 million and K250 million today.

Source: Myanmar Times

 
Copyright