By Andrew Batt:
Real estate agents in Yangon saw unprecedented rental demand for condominiums last year, and are expecting that demand to grow over the course of the next ten months.
Antony Picon, Associate Director of Colliers International based in the Myanmar city, told DDproperty.com: ” The condominium law is expected to allow some form of foreign ownership quota which will spur demand for luxury units which are in very short supply. Some investors may purchase multiple units. Local buyers will also be a very strong demand driver due to absence of credible options for storing wealth. “
He added that local developers now need to take into account foreigners as end users, whether as owner occupiers or more likely as renters. Unit sizes, which are currently very large, should be adjusted to suit smaller requirements from foreigners who are highly unlikely to bring extended families. Their preference will be for studio, one- or two-bedroom units.
He added: “Due to lack of serviced apartments, high-end condos will be in demand from foreign expatriates, but attention must be paid to the provision of facilities such as swimming pool and gyms, as well as back-up power to individual units as well as common areas. Effective property management and sinking funds should be introduced to maintain the appeal of the development – and of course the price.”
Speaking to the Myanmar Times, U Sai Khung Noung, Managing Director of Sai Khung Noung Real Estate and Law Firm, attributed the boom to a huge influx of foreigners during 2012, adding that prices rose sharply and demand is now 50 percent higher than this time last year.
He told the newspaper: “I’ve had many clients from China, Japan and Europe using my agency to rent apartments and condominiums in the past year. These clients are typically interested in housing that has shopping nearby, although the structural condition of the building and security are also important.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg
Recent stories you may have missed
Bangkok’s property investment prospects on the rise
Thai property in the Singapore spotlight
Alleged real estate scammers arrested in Phuket
Go-ahead soon for Makkasan Complex
THB13 billion sales for Sansiri
Get daily property news in Thai and English straight to your Inbox from Thailand’s number one property website. Subscribe today for free.