Wednesday, April 26, 2017
Competition
between condo developers will become fierce this year as they vie for
buyers amid a glut of supply, real estate industry leaders have said.
U Nay Min Thu, managing director of iMyanmarmHouse.com, told Myanmar Business Today that the supply of condos is increasing faster than demand, meaning sellers will have to resort to creative marketing strategies to attract a limited number of buyers.
“The supply of condos has been increasing since early 2017,” he said. “Some projects are at the luxury end of the scale and some are more basic.”
Some condos are being sold with long-term payment plans that charge no interest in a bid to attract buyers, U Nay Min Thu said.
His company is hoping to offer long-term payment plans of over 10 years for condo buyers and is in discussions with local banks, he said.
AYA Bank recently partnered with Shwe Taung Real Estate, the developers of the Hilltop Vista Condominium and Crystal Residences projects, to offer 15-Year mortgages, the longest repayment period available so far in the country.
Developers at other projects including Swaydaw City, Paragon Residence, Kanbae Tower, GEMS Garden, River Front Garden, Sea View Condo, Kanthayar Center have all set competitive prices thanks to lacklustre demand, observers say.
Because of market conditions, apartment blocks that lack parking and an elevator will struggle to attract buyers, U Nay Min Thu said.
But there is hope on the horizon for condo developers. A planned new condominium law is expected to make it legal for foreigners to own condos, a change that is likely to boost demand, especially in the upper segment of the market.
Allowing foreign ownership of condos has also been welcomed as a way of attracting foreign currency inflows to Myanmar, which some hope will smooth fluctuations in the dollar exchange rate.
Though the the condo market has faced various headwinds, the Myanmar Real Estate Service Association says government policy has recognised and seeks to give the market a boost this year.
Source: Myanmar Business Today
U Nay Min Thu, managing director of iMyanmarmHouse.com, told Myanmar Business Today that the supply of condos is increasing faster than demand, meaning sellers will have to resort to creative marketing strategies to attract a limited number of buyers.
“The supply of condos has been increasing since early 2017,” he said. “Some projects are at the luxury end of the scale and some are more basic.”
Some condos are being sold with long-term payment plans that charge no interest in a bid to attract buyers, U Nay Min Thu said.
His company is hoping to offer long-term payment plans of over 10 years for condo buyers and is in discussions with local banks, he said.
AYA Bank recently partnered with Shwe Taung Real Estate, the developers of the Hilltop Vista Condominium and Crystal Residences projects, to offer 15-Year mortgages, the longest repayment period available so far in the country.
Developers at other projects including Swaydaw City, Paragon Residence, Kanbae Tower, GEMS Garden, River Front Garden, Sea View Condo, Kanthayar Center have all set competitive prices thanks to lacklustre demand, observers say.
Because of market conditions, apartment blocks that lack parking and an elevator will struggle to attract buyers, U Nay Min Thu said.
But there is hope on the horizon for condo developers. A planned new condominium law is expected to make it legal for foreigners to own condos, a change that is likely to boost demand, especially in the upper segment of the market.
Allowing foreign ownership of condos has also been welcomed as a way of attracting foreign currency inflows to Myanmar, which some hope will smooth fluctuations in the dollar exchange rate.
Though the the condo market has faced various headwinds, the Myanmar Real Estate Service Association says government policy has recognised and seeks to give the market a boost this year.
Source: Myanmar Business Today
