By Swe Oo Wai
A host of high-rise buildings can be found when taking an overall look at Yangon, the nation’s commercial city. Some tall buildings are under construction, and some are found to have been already completed. In addition, new condominium developments and housing are going to materialize across Yangon in a little while.
The construction of the condominiums is underway in most townships of Yangon, and some 15,000 new condominium apartments are going to appear. The working class and the middle- class people from Yangon still need apartments.
Those who can spend well trying to live at condominiums
The people who can spend well are trying to afford to buy a condo which is appropriate for their lifestyle. Most of the buyers like the payment in instalments when reviewing the sales of the condos in Yangon and some like cash down payment. However, the number of those who are paying for condos cash down still remains quite a few.
The selling and buying activities have not been brisk in the current real estate market in Yangon. The real estate developers will have to continue striving for the sales when the new condos emerge. The condo market in Yangon is currently livelier than that of the previous months as health guidelines issued by the Ministry of Health and Sport are gradually relaxed.
But in the real estate market, the buying and the selling of condos worth of K100 million and K 150 million are going well now. Regarding this condo trading, different forms of payment have been seen between the buyers and the sellers and payment forms are also appropriate between them.
Sluggish trade in the real estate market
The sales of the condos that are going to appear soon are mainly targeted at foreigners rather than the citizens. Now the real estate market remains silent and cold without any sales and purchases as the Covid-19 pandemic taking place around the world severely hit the businesses like trade, travel, tourism and investment. The real estate developers are predicting that their business would return to almost normal in the next three to four months.
Myanmar already enacted the Condominium Law in 2016, and its by-law came out in 2018. The construction entrepreneurs will be able to hope to get the foreign exchange if they sell the condos to foreign businessmen and those abroad working and living here at the price of K250 million.
Foreigners have right to buy condos according to Condominium Law
Yangon’s condo sales have to rely much on domestic instalment purchaser market. According to the Condominium Law, the foreigners have the right to purchase 40 % of all the apartments of the whole condo building. For that reason, the owners of the condos are hoping foreign buyers.
The construction and the sales of the condos have come to a halt since April and May of this year, thereby leading to a sluggish run of condo trading, but returning to restart gradually in June and July. Most condos of Myanmar are concentrated in Yangon, and it is the most interesting city for local and foreign buyers as well.
The construction entrepreneurs are hoping that the demands for the purchase of condos in Yangon would grow more. The condos worth of K100 million and K150 million are currently in demand, and new condos are going to appear
3% tax reduction
Condo trading is back to go well now because the Central Bank of Myanmar reduced the interest rate of the housing loan to a three per cent. Most of the condos are concentrated in Bahan, Sangyoung, Kyimyindine and Mayangon townships in Yangon, and these places are the major ones in Yangon because of the advantage of the easy transport. These key places are drawing the attention of local and foreign buyers.
Changes in lifestyles
With job opportunities for better pay and gradual changes in the way of life, the youths of today like to buy and live at the condos. Especially, the educated couples of well-paid jobs and young pairs with good businesses are trying to meet the hope of being able to live at the condos. It is predicted that condo trading would recover in the post period of Covid-19. Some 15,000 new condo apartments are going to appear in Yangon almost immediately.
Housing project with a cost of K 178 billion
Gyogone housing in Insein, Yangon is to be rebuilt at the cost of K178 billion, and it will appear in a new design.
Implementation of rental housing
Now is the time the old images in Yangon are being substituted with new developing ones. For that reason, the old state-owned housing is now being rebuilt with new designs. In 1952, U Wizara housing, Phasapala housing, Yankin Hset-hnit-lone-tan housing and Gyogone housing were implemented in Yangon.
Firstly, tenders for Gyogone housing were invited on 13 November in 2019, and the MTSH appeared as the winner following the in-depth scrutiny of the tenders. The tender scrutiny was carried out by Yangon Metropolitan Development.
Reconstruction of the housing project
The housing projects are being jointly implemented by the Yangon Region government and the Ministry of Construction. Now Pyitawthit housing project in Pazuntaung township and Lanthit housing project in Lanmadaw township are under implementation.
Gyogone housing project is situated beside Insein road and Baho road, and it is in the area of West Gyogyone. The MTSH is going to build Gyogone housing project on the land of 17 acres at the cost of K178 billion. Chairman U Win Aung of the MTSH said, “The MTSH was chosen as the preferred developer, and it won the tender as well.”
The officials of the tender selection committee said the MTSH has gained proper experience in the implementation of the urban housing project in Thilawa Special Economic Zone, its finance is basically sound and strong and its governance is also good. For these reasons, the MTSH was chosen as the tender winner.
Emphasis to be placed on the implementation of Gyogone housing project
Emphasis will have to be placed on the relocation of those living at Gyogone housing now, and the emergence of low-cost and affordable apartments once Gyogone housing is completed. Quality and endurance will be scrutinized.
The newly-implemented Gyogone housing will have low-cost and affordable apartments, the shopping centre, the commercial buildings, the recreation centre and health fitness centres.
The company, the regional government and the Myanmar Investment Commission will have to sign the contract in order to begin the project. The old rental housing will have to be demolished if they are to be implemented and those currently living are to be removed from the old housing. Once completed, they will have to be relocated through a draw system. The transfer and residence costs during the implementation of the project will be taken responsibility by the regional government.
Functions with least effect
Those who are living in state-owned rental housing in Yangon are worried about the reconstruction of some old state-owned rental housing by Yangon regional government. But these housing will have to be demolished, and new high-rise apartments will be substituted in the place of old ones. Least effect will have to be taken into consideration when the implementation begins.
There has been a gradual increase in the number of new town project, housing project, industrial park project and town extension project in Yangon. It is important not only for residence but also for the development of Yangon, including businesses.
Collaborative efforts with companies
Systematic plans are underway to reconstruct the 70-year-old Gyogone housing, and the implementation of the construction of the housing will begin soon. It is aimed at enjoying a better living standard. It is impossible for the government to spend a large sum of money on the reconstruction of the housing and the government, therefore, planned to do it in cooperation with the company capable of making investment. Once completed, Gyogone housing will add developing images to Yangon city, thereby raising the standard of living for those living there. [Translated by Htut Htut (Twantay)]