Yangon Region has set aside K100 billion (US$97 million) to build 10 affordable housing projects in the 2015-16 fiscal year, according to a senior official from the Department of Human Settlement and Housing Development.
The funds are to be combined with other capital to build lower-cost housing developments in Yangon as well as Pathein and Mawlamyine cities.
Plans – including building designs and cost estimates – are already in the works, and private companies will be invited to participate in an open tender in the next few months.
“It will adhere to a policy of ‘No profit – no loss’ from the government’s side,” he said. “Actually, the funds will not cover all 10 projects, which will create a total of 18,000 affordable units. We will build a few buildings first and sell them, using the funds to build the next one,” he said.
Each project should take about two years to build, with seven of the projects in Yangon and the other three in Ayeyarwady Region and Mon State.
It is too early to decide the exact price the units will be sold at, though the projects will be on government land, so land prices won’t be factored in.
Prices will be determined from the construction costs as well as water and electricity supply charges, aiming for an affordable price that ensures the government also doesn’t lose money.
It is likely the units will be sold for about K10 million each, as construction is anticipated to cost about K7.5 million per unit and infrastructure hook-ups an additional K2.5 million.
The move to build these units follows a mid-2014 announcement from the Ministry of Construction that it aimed to address a shortage in low-income units, not just in Yangon but also regional cities.
The department claims to have completed 98 affordable housing projects in Yangon from 2013-14, with another 294 under way in Yangon and 79 in Mandalay, Monywa and Magwe cities.
The official said there are plans for hundreds more projects, targeting middle-income people, such as civil servants and staff workers.
“There will be more affordable housing in the future,” the official said.
Interested buyers will be called once the projects are completed.
Generally, large numbers of applications are accepted, with a lucky draw determining which applicants will be able to purchase a unit, the official added.
Fast facts on the 10 projects
Dagon Seikkan township
35 buildings of 18 storeys,
10,080 total apartments
South Dagon township
4 buildings of 6 storeys,
384 total apartments
10 buildings of 6 storeys,
240 total apartments
76 buildings of 8 storeys,
2592 total apartments
40 buildings of 6 storeys,
1440 total apartments
Hlaing Thar Yar township
52 buildings of 5 storeys,
1000 total apartments
40 buildings of 6 storeys,
1920 total apartments
Pathein, Ayeyarwady Region
7 buildings of 3 storeys,
336 total apartments
8 buildings of 4 storeys,
192 total apartments
Mawlamyine, Mon State
12 buildings of 4 storeys,
176 total apartments
Source: MYANMAR TIMES