YANGON, Dec. 12 (Xinhua) — Real estate prices in industrial zones in Myanmar’s Yangon have been falling as un-utilized vacant plots and warehouses are faced with seizure under a recent ultimatum issued by the Yangon government, the semi-official Global New Light of Myanmar reported on Friday.
The regional government set Feb. 1 next year as a deadline for owners of such plots and warehouses in the zones to put them to business use or turn over them to the government.
Land prices in some industrial zones in Yangon have dropped from more than 5 billion kyats (5 million U.S. dollars) per acre ( 0.405 hectare) to around 3.5 billion kyats, according to a recent survey.
There are 2,339 vacant plots with 1,299 warehouses in 29 industrial zones covering 1,789 hectares. They are blamed for hindering the creation of job opportunities and making land prices higher.
The plot owners have signed agreements with the government on building facilities on the land within three months after receiving land utilization from the Construction Ministry, promising that if they fail to establish businesses on the plots, the authorities are entitled to seize them.
According to official statistics, real estate stood the seventh largest sector in foreign investment in Myanmar with 2.12 billion U.S. dollars taking up 4.25 percent of the total of 49.901 billion dollars as of September 2014.