“Only if the Government can implement laws, bylaws, policies systematically, foreign investors will enter and the whole property market will improve,” he said.
Construction and real estate experts, along with legal experts and officials from responsible ministries jointly drafted the apartment law since 2018, which is supposed to stimulate the property sector.
The draft law has been submitted to Yangon Region Hluttaw and discussion will start in next session of the regional parliament.
Developers said that if the apartment law is enacted this year, trust between seller and buyer and ownership will be stronger and the market will be better.
Under the current government’s policy on infrastructure development, public and private sector partnership were implemented in order to fulfill the dream of many people to own a house.
These housing projects can produce impetus in the development of the housing sector, as there is a large unmet need for low class and middle class housing in the country. Until now, the government sells housing units in long-term loans and rotating system.
On the other hand, the high-end residential projects from private sector are in the over-the-counter or off-exchange trading done directly between two parties, without the supervision of an exchange. There is no movement in prices yet in this segment of the market.
There were several cooperation agreements among different organization in 2019 in a bid to develop the real estate and construction sector.
“In reality, there has been no movement for real estate sector development,” said Myanmar Construction Entrepreneurs Association’s general secretary U Myo Myint.
U Kaung Thu Wi, founder of ShweProperty.com, said now is the good time for people to invest in real estate as everyone is competing for sales and the buyers have much more choices.
Unfortunately, people investing in condominiums calculate the return rate for his or her investment in a year and if the rental prices fall, they become reluctant to make investments.
U Kyaw Sithu, however, stressed that the number of condominium units in the country is very small compared with those from the other countries.
He said there are only between 6000 and 8000 condominium units available for rent in Yangon every year. This is not enough for about 100,000 foreigners living in the country’s economic capital.
“Developers need to make effort to address the need in next five to ten years,” he said.
U Kyaw Sithu stressed that since the different sectors of the country’s economy are linked to each other, there is a need for the government to come up with solid laws and regulations as quickly as possible to achieve economic growth.
For the real estate sector, the government’s move to reduce tax rates for properties buyers with undisclosed income in 2019 has somewhat boost transactions, according to U Myo Myint.
Experts said that while 2019 was not one of the best years for real estate and construction, they are looking for better environment in the coming years, hoping that responsible authorities would be able to make the necessary actions.
The people expect the year 2020 to be a better year as they hope to enjoy the fruits of the changes and efforts made in 2019.
The experts hope that the government would be able to come up with better laws and policies for the industry, having learned from the missteps from the previous year.
Credit: Myanmar Times news