Hope yet for Nay Pyi Taw’s real estate market

Real estate agents say they hope Nay Pyi Taw’s “sluggish” property market will pick up as the new government takes the reins early next year.

Land prices in the capital enjoyed a brief surge in 2013, first when Myanmar held the Southeast Asian Games, and then as Myanmar assumed the chair of ASEAN. But while nothing much has happened since, that could change depending on the new government, said property observers.

They pointed out that the National League for Democracy-led government will take power as the ASEAN Economic Community launches, a development likely to spur investment.

Dampening the hopes of property owners and would-be buyers in Nay Pyi Taw, however, other observers have called the market there sluggish and prices static.

One experienced investor said that Nay Pyi Taw City Development Committee had granted plots to more than 3500 civil servants in the industrial zone in Dekkhinathiri township. “The plots have been given to officials about to retire,” he told The Myanmar Times, suggesting revived interest in and around existing and possible future industrial zones between Pobbathiri and Tatkon townships.

“Land prices in Dekkhinathiri could rise because the industrial zone has revived,” said the source, as such land is cheaper than similarly located plots in Yangon.

The areas attracting most interest are Paunglaung ward in Pyinmana township; Bawgathiri bus terminal beside Yarza Htarni road; the Rose Flower roundabout; Shwe Kyar Bin ward in Zabuthiri township, and Thabyaygone ward near the gems emporium. Others favour the Pobbathiri and Dekkhinathiri new towns.

Pobbathiri new town was built in 2007-2008 for retired civil servants living in affordable housing worth from K3 million to K4 million. The southern part of the new town is for retired civil servants, the northern part for retired military.

In plusher Ottarathiri township, even a plot of 60-by-80ft can range from K50 million to K70 million, while a plot of the same size in Pobbathiri is priced at K18-20 million, and a piece of land half that size can go for as little as K5-10 million, residents say.

“The price of land here increased somewhat in 2010. At that time, a 40-by-60ft plot on Ayeyarwady Road, the main road in Nay Pyi Taw, rose to K50 million. But then people lost interest,” a retired civil servant living in Wunnadipa ward in Pobbathiri told The Myanmar Times.

Pobbathiri new town contains Nay Pyi Taw railway station, but otherwise few jobs or businesses.

In Zabuthiri’s Shwe Kyar Bin ward, near the gems zone, a 40-by-60ft or 60-by-80ft plot can still fetch up to K60 million, down from its K100 million peak. A revival of the gem market could warm the market up a little.

In Thabyaygone ward, adjacent to the Mani Yadana gems hall, a 40-by-60ft plot has been priced at more than K100 million to K150 million, even K200 million in a prime area. Those days could yet return, said broker Daw Nge Lay. “Prices aren’t moving, and sales are down. Things could improve gradually under the new government.”

Companies from Yangon and Mandalay buy land in Nay Pyi Taw to open branch offices, and rich people from southern and northern Shan State also invest there, either to build commercially or resell, said experts.

The cheapest part of town – and the area attracting least interest – is Zeyathiri township, home to many military installations, as well as the zoo and a safari park. There, it will cost only K4-7 million for a 40-by-60ft plot, residents say.

“There are few jobs, as in Pobbathiri,” said U Aung, who lives in Nan Aww village in the township. “Investors can’t see a profit because of the proximity of the military areas.”

Source: Myanmar Times

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