Apr 26, 2017

It’s a Buyers’ Market as Developers Fight to Sell Condos Amid Coming Supply Glut

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