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Political reform causes instability in real estate market, says Lamudi report

Myanmar’s real estate market depends on the country’s political changes, according to the annual report published by online real estate marketplace Lamudi on November 29.

The report highlighted five focal points – political reform, economic potential, limitation on foreign direct investment, property price changes and fraud in real estate business – that affect Myanmar real estate prices.

Political reform is 57 per cent tied to the real estate market, followed by economic potential of the country with 38 percent.

The Lamudi marketplace includes 28 countries, including Myanmar. It is now conducting surveys in 16 countries.

“Property prices seem stable now, despite the rapid increase in the past few years. I am not sure about the luxury market. When I look at into the Ks 30-50 million range market, it seems normal,” said Aung Tin, a legal advisor and consultant for the Myanmar Real Estate Service Association.

According to data analysis, the real estate market jumped and fell during the period when the country practiced a taxation system that allowed tax payers who paid 15 percent tax on their income to buy a property without verification of how they earned their money. Prices began to rise in 2010-11 and skyrocketed when the civilian government opened the country’s economic doors.

In 2010, the price for one acre-land in Hlinethaya Industrial Zone, Yangon, was Ks 200-250 million (US$200,000-$250,000). The same land is worth Ks 500-600 million per acre and Ks 300 million per acre in Mingaladon Industrial Zone.

Source: ELEVEN MYANMAR

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