Real estate agents in Mandalay, Myanmar’s second city, are set to
petition authorities to cut the current 37 percent property transaction
tax. The tax, imposed in August 2012, replaced a top rate of 15 percent
and was widely criticised as detrimental to the property market.
Following
a public invitation from the government for property agents to become
more involved in policy, a meeting of brokers last week called to
establish the Mandalay Region Real Estate Brokers’ Association.
“We
have to submit proposals by February 11 relating to property fixed
standard prices. We will also suggest reducing the 37 percent property
transaction tax,” said U Wunna Soe of Phoe La Min real estate agency at
the meeting, quoted by local media.
Elsewhere in the country,
Yangon is starting to see minor cooling effects in its luxury property
market after the implementation of new tax measures in October. The
local divisional government applied fixed values for properties to
determine owed property tax. According to local media, brokers reported
that high-end property sales (above US$1million) had almost ground to a
halt, although lower-end properties are still seeing demand.
The
city must now work on its rental values, which have more than doubled
since 2012. Though construction has increased since 2005, demand still
far exceeds supply in Myanmar’s capital.
Andrew Batt, International Group Editor of PropertyGuru Group, edited this story which was first published by OPP Connect. To contact him about this or other stories email andrew@propertyguru.com.sg
Recent stories you may have missed:
MUST READ: Agency predicts property sales will drop by 40%
Industy offers mixed view on the impact of ‘Bangkok’s shutdown’
Amari to launch on Phuket’s Patong Beach
Bangkok rentals rise for the first time in 20 years
Bangkok property market demand is driven by Thai buyers
Do you have a property story to tell us? Email andrew@propertyguru.com.sg with the details.