Property-market watchers say the increasing availability of home loans, the introduction of the Condominium Law 2016, and stable market makes this a good time for those looking homes to start considering taking the plunge.
At present, management bodies that will enforce condominium rules and regulations are starting to emerge and as soon as they are formalized, big housing projects can be legally registered.
“After registration, a project will be able to sell 40 percent of the apartments to foreigners according to the Condominium Law 2016. This will support the development of the property market and attract foreign investors, said U Kyaw Sithu, the owner of a construction company.
“It is a buyer’s market now and developers are most willing to sell at this time,” he said.
“At the same time there are a lot of sales promotions and if buyers can choose good locations and good projects, it will be a good investment,” he added.
Meanwhile, housing loans repayable in monthly installments have begun to flourish in the real estate market since the beginning of this year, as more construction companies and real estate developers collaborate with banks to make home ownership more accessible.
“Being able to take out property loans is convenient for buyers, but the high interest rate is still something that must be considered,” U Kyaw Sithu pointed out.
Many of the buyers looking around in property expos are those who want to purchase units between K60 million to K100 million with bank loans, said U Kaung Thu Win, director of property website ShweProperty.com.
“Even pensioners and young people are looking to buy and the majority of the buyers are not looking at investments but because they actually need a home to live in,” he added.
U Kaung Thu Win said property loans, and strong foreign-ownership laws will boost the property market.
“Over the past six months, some 200 people became homeowners with property loans ShweProperty.com,” said U Kaung Thu Win.
Since home loans are still relatively new, industry insiders say there have been cases of delays due to incomplete documentation and unfamiliarity with the process of applying for a loan.
It is expected that this will smooth itself out once banks and applicants become more familiar with the process.
Another reason to start taking a closer look at the property market is the improving quality of new buildings. “Nowadays, buyers do not buy if the quality of the building is poor.
“I foresee modern buildings will be prioritizedExperts say it’s a good time to enter the property market for the next five years. Buyers will only be interested the buildings with good services and quality,” said U Kyaw Si Thu.
The other factor that can support growth of the Yangon property market is better infrastructure such as roads and bridges in the city.
Meanwhile, the development of shopping centers, office towers, serviced apartments and goods hotels are expected to become part of a virtuous circle that can only boost Yangon’s appeal as a city to live in.
Time to invest
It could also be a good time for property investors to enter the market. “Foreign investors look at basic infrastructure like land, roads, water and electricity. If these are looked after then even more foreign money will enter the economy,” said U Nay Min Thu.
“Under the country’s present economic conditions, there is potential for an influx of foreign investment, therefore it is a right time for those who want to invest in local real estate to start considering the market,” said U Kyaw Sithu.
U Nay Min Thu, managing director of another property website, iMyanmarhouse.com also pointed out that “due to the current state of the economy, some people are looking at property as an investment as they are worried that money kept in banks will diminish in value if the kyat weakens further.”
“In the present conditions, local investors should still consider investing in apartments and condos rather than land,” said U Kyaw Sithu.
“The unstable exchange rate will lead investments to the real estate sector. I think the land prices will still go down for at least two or three years,” he added.
Land prices in Myanmar hit a peak in 2013 and have now dropped by about 25pc, said U Nay Min Thu.
Based On – Myanmartimes.