By Andrew Batt:
Prime property prices in Rangoon, Myanmar, have skyrocketed 39 percent during the first nine months of this year, according to a survey by an investment bank in Rangoon.
Speculators have pushing up prices of prime residential, office and factory space according to the Silk Road Yangon Property Index (Sypix) which measured the average price per sq ft of residential property in Rangoon, the country’s largest city.
Prices are US$ 85 per sq ft, according to the index which was compiled by a unit of Silk Road Finance, an investment bank company operating in frontier markets.
The survey revealed that hotel rates in Rangoon have risen 65 percent this year, the biggest increase in the global hospitality industry, and a trend that prompted the government to try to introduce a cap on room rates in foreign-owned hotels in June.
Office rental rates have risen 50 percent this year, with prices in downtown Rangoon in excess of $50 per sqm per month in some locations. Total office space available in Rangoon is currently less than 1 percent of that available in the Thai capital of Bangkok.
Separately, a recent survey revealed that high net worth individuals in Thailand are looking at property investments in Myanmar ahead of anywhere else in the world.
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