Yangon, the commercial hub of Myanmar, has become a less attractive property market to foreigners due to rental hike, a real estate source said.
“Some places in Yangon have such high rental charges that local people just cannot afford to pay for it. Foreign investors can endure the increased property price because of their profitable business overseas. But local people will not be able to pay the exorbitant rental charges. Therefore many will choose to vacate the rented property, said Jan Sunmar Phad of House.com.mm.
“The property price has steadily increased since the government assumed office. Unless the government can rein in the price hike, there is going to be a crisis,” said a market analyst.
“May be, property price is good for property investment. But difficulty will arise for the local population unless the price increase is brought under control. The government should tackle the problem of soaring rental charges. A single flat along Windarmia, Thanlwin and Kaba Aye Pagoda roads will charge US$6,000 to $7,000 for rent. Therefore the property rental business is on the downtrend as most business are not able to pay this kind of exorbitant rental price,” said an official of City Land Real Estate Service.
Foreigners are interested in properties located in Dagon, Bahan, Latha, Botahtaung, Myaynigone, Hlaing and Kamayut, Yangon Region.
“The property owners should control the rental charge rather than allow it to soar because more and more foreigners will come to live and work in Yangon and we do not want to turn them away because of the high rental charges,” said Jan Sunmar Phad.
Source: ELEVEN MYANMAR
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