Yangon public rental housing to become worth living estate

In the vast field of land, the modern construction machinery, labourers, technicians and experts are spreading and moving around the construction areas. In the same scene, there are many nearly completed buildings and under-construction buildings.
These buildings are being constructed by the government for those people who cannot afford to buy a house. This big estate is located near No 7 Road and No 2 Road, Laydauntkan village, Dagon Myothit (South)Township, Yangon Region.
“This project aims to address the impact on the construction sector during the COVID-19 period, to create job opportunities and to assist the families in reducing the costs of apartment rents,’’ said U Win Naing, the deputy director of the Urban and Housing Development Department with the Ministry of Construction. Demand for housing in the densely populated cities is rising year by year as more and more people are moving from one region to another in the hope of having better job opportunities with the population growing every year.
Besides, people who cannot afford to buy flats are suffering from rising rental costs in privately owned estates.
Currently, even the developed countries have been suffering from the effects of the pandemic. Myanmar as a developing country naturally face a similar effect, people being more likely to lose their jobs, their income decreasing and it is thus almost impossible to afford to rent a flat.
“Even in the past, we had difficulty saving K100,000 per month for house rent. Now, my husband does not have a regular job because of COVID-19. My salary has been reduced by half and we have to move to another affordable dormitory next month,” said Ma Shwe Sin, who rents a house near the Dagon Seikkan Industrial Zone.
In order to improve the socio-economic life of the people and create job opportunities through the construction sector, the Ministry of Construction is implementing public rental housing projects in Yangon, Mandalay, and Nay Pyi Taw, the densely populated cities.
About 3,104-unit public rental estate project in Yangon will be implemented on a 174-acre plot of land and it will include four five-storey buildings with 194 flats.
The government has invested millions of kyats in the project and they expect to recover the costs by renting the buildings to the public for a long-term period.
Upon completion of the project, the tenants will be able to live in the housing estate at an affordable rental price.
“According to a 50-year investment calculation, the rents are likely to be around K50,000 per month. The costs of the project haven’t been finalized and it is just an estimated rental price,” said Deputy Director U Win Naing.
Each unit of the public rental housing will be 650 square feet wide. Each apartment contains two bedrooms, one living room and one bathroom. The project area also includes the market, school, clinic, playground and park.
Efforts will be made to be able to lease some of the completed apartments in the project areas by 2022. Now, the finished units are being installed with electricity and water supply facilities.
The applications for renting flats from the public rental housing project will be officially invited to the public. Any family renting the houses in 33 townships in Yangon City Development Zone can apply.
This housing project is open to everyone. Employees will not be given the first priority by this project. Those who are living in the private rental houses need to show the documents that they are currently living in the rented houses, explained U Win Naing.
Public rental housing projects were first started in 1951. The 11 public rental housing estates have been implemented, which include Yankin housing, U Wisara housing, Lanthit housing, Weluwan housing and Kandawlay housing among others.
The public rental housing project, currently being developed to meet the demand of the houses for the people, will no longer be allowed to stay for a long period as it used to be but will be allowed to be rented only for a limited period.
“Some people thought that they would own those apartments. The project is a rental housing project. So, nobody will own the buildings. The flats will be rented for a fixed period of five to eight years,” said the deputy director.
“It is not easy to buy a house in this situation. As we have to rent a house, we are glad to hear that we will be able to live with low rents. Hopefully, they will scrutinize the applications thoroughly,” said Ma Shwe Sin. – Nadi Min/GNLM