Real estate prices on the rise, sales fall on slack demand

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After the stand-alone house prices have risen, the 25 feet by 50 feet flat prices were also on the rise”, real estate agent U Thein Htwe, who has over one decade of experience in that field, talked about the rising prices of flats to the Global New Light of Myanmar (GNLM).
The stand-alone houses and low-layer apartments in Yangon are priced at about K1,500 million, and the prices rose to K2,000 million. The prices have not dropped yet so far, according to GNLM’s data.

Stand-alone house and low-layer apartment prices remain strong
The transactions of two-storey houses and low-layer apartments between Phonegyi Street and Mawtin Street and in the lanes beside the Maha Bandoola Road of Lanmadaw Township have been stalled for about 20 years, and now the sales are in progress at between K1,200 million and K1,850 million, real estate agent Daw Myint Soe from Lanmadaw Township told the GNLM.
These buildings were priced at only K600-K700 million in 2015 and K800-K900 million in 2020. At present, the prices are on the rise. Some stand-alone houses have been used as warehouses from 1990 to 2023.
Recently, advertisements for low-layer, stand-alone houses for sale have been seen on social networks, including their floor prices, depending on their location.
However, only a few people are interested in it, said property agent Ko Thet Oo.
The apartments along Maha Bandoola Road, Latha, and Pabedan townships from Phonegyi Street to Sule, which were closed previously, became places for companies, gold shops, and showrooms, so there are no more unoccupied apartments. However, there are still five buildings between Phonegyi Street and Lanthit Street, said Daw Tint Tint, a Latha resident.
Most of the apartments in Latha township are unoccupied, and few are closed, and the flats in those townships are not advertised for sale.

Renting property becomes a faster and easier option than selling
For property sales, the sellers must give the land owners and brokers two per cent of the sale price.
“In rental service, the tenants and apartment owners have to pay the fee for one month for a one-year rental contract and for a half-month rental fee for a six-month contract to the service providers,” said real estate agent U Hla Maung.
The prices of stand-alone houses are higher than the typical apartments, and they are likely to be the same as the sale prices of condominiums. The service fees are also reasonable. The sale of apartments does not include land ownership, but it does for the sale of stand-alone apartments. The rental fee for stand-alone houses on the main road is above K3 million per month, depending on the locations.
“The people who run huge businesses prefer renting than buying this year. They rent buildings on the main road to open gold shops and restaurants. The rental fee of the stand-alone houses and apartments in the streets goes up this year,” said agent Ko Thet Oo.

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