Along with the automobile market booming in the third week of August, some apartment prices in Yangon’s immovable property market hit new highs yet the property transaction volume has risen unexpectedly, realtors pointed out.
The 12×50 feet apartment on the top floor of a high-rise building near Chinatown in Latha Township was valued at only K35 million in late 2022. The apartment on the fourth floor was worth K70 million per unit and the one on the fifth floor with some partitions was valued at K65 million per unit then.
That 12×50 feet apartment was put up for sale over the past six months. The buyer nearly reached an agreement with the seller at approximately K55 million. Yet, the seller raised the price to K66 million again, U Aye Thein, a grandson of the land owner, told the Global New Light of Myanmar (GNLM).
“First, the opening price was K55 million. Then, the price jumped to 60 million. The owner of the apartment seems to determine the price depending on the forex market”, U Aye Thein highlighted.
Additionally, housing prices are rapidly fluctuating, Ma Wah Wah Swe, a realtor from South Okkalapa Township, told the GNLM.
“The value of the 30×60 feet house worth below K300 million moved up to K400 million because of the Kyat depreciation in the forex market. Then, the notification about the issuance of the K20,000 note caused the price to go higher to K500 million. The property price fluctuates as they are closely tied to the currency value and gold price. We realtors are also surprised by the high volatility in the real estate market”, Ma Wah Wah Swe stressed.
As the car prices have been soaring, the housing prices also hit fresh new peaks in recent months. The property market sees an upward trend in prices.
The volatile foreign exchange rate and unofficial market rate of pure gold dealt a blow to the movable and immovable property market as well as the commodity market.
“The price of the vacant plot of land in East Dagon Township was not that high previously. Now, the price is up by K10 million per plot of land. The township has not developed and there are only vacant plots of land with permits there. However, the price is skyrocketing”, the GNLM quoted Ko Aung Than Oo from East Dagon Township, as saying.
Nonetheless, the authorities concerned observed and met with those stakeholders in the industry on 19 August.
Along with the Kyat devaluation in the forex market, a crackdown on the illegal money transfer hundi businesses is underway.
Following the price dips of pure gold and the exchange rate, there is speculation about the possible price decline to a small extent in the real estate market. — TWA/EM
