The price of land in Thilawa Special Economic Zone (SEZ) will be reduced by 30 percent to encourage investors as real estate prices skyrocket in other industrial zones in Myanmar.
“Price of industrial zones have been all time high and both local and foreign investors are finding difficulties to invest here. So we are going to reduce 30 percent of current the prices for the Thilawa Special Economic Zone in order to make a favourable business environment,” said Win Aung, president of Thilawa SEZ Public Holdings Ltd.
The Thilawa SEZ has attracted both local and foreign investors to set up garment factories, food processing companies, spare parts operations and much more. However land speculators have driven up the price of real estate creating disincentives for investors.
“The price has gone up because of some brokers who want to speculate in real estate sectors. In fact, they do not run businesses and only speculate for their own benefit,” said a businessman form Hlaing Tharyar Industrial Zone.
According to a report from Myanmar the Thilawa SEZ Public Holdings Ltd., they will award leases to companies who actually want to run their business. They will have to start their operations within an appointed time and action will be taken if the companies fail to carry out their promises.
“We practice a 50 years lease and if the business enterprises want to extend, they are allowed to for another 20 years. So in total they are getting a 70 years lease. The expected time for announcing this price of Thilawa SEZ is either April or May,” said Win Aung.
Apart from the Thilawa SEZ, the price of real estate in other industrial zone has been on the rise. According to one broker, one acre of land in the Thilawa SEZ currently goes for Ks 250 million.
The Thilawa SEZ occupies more than 6,000 acres in the southern district of Yangon Region and Foreign investors have criticised land prices in Myanmar for being too high.
Source: ELEVEN Myanmar