Despite the advice of experts not to interfere, Myanmar’s government
may impose new property taxes amid fears that spiralling property prices
could discourage foreign companies from investing in the country.
Land prices in Yangon, Myanmar’s largest city and former capital,
have surpassed that of Manhattan, at between US$1,000 per sq ft to US$1,500
per sq ft.
Prices in regions outside of Yangon have also
soared. For instance, investors bought up land on both sides of the
Yangon-Dala River after the government unveiled plans to build a bridge
there.
“We have (internally) proposed tax prices for land in the
Yangon region, and are looking at rates for the entire country. We will
make an announcement soon,” said Maung Thein, Deputy Minister of
Finance.
The move aims to stabilise the market, curb speculation and boost the government’s income, he added.
Meanwhile,
authorities have temporarily suspended the Yangon-Dala River bridge
project until new officials are elected in 2015, said U Soe Thein,
Minister of the President’s Office.
Although economists have
admitted that prevailing prices are too high, they are urging the
government not to interfere and allow the market to rise and fall based
on demand.
“The rising cost of land is indeed a hindrance to the
economic development of the city and the country at large. But it is not
due to sellers’ greed — it is simply the trend of demand-pull market
economics,” explained Professor Aung Tun Thet, a member of the State
Socio-Economic Development Advisory Council.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@allproperty.com.sg
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