Condo developers go small-town

As the market for condominium developments in Yangon becomes increasingly crowded, developers are looking at other locations across the country for opportunities to build new projects.

Yangon’s skyline is changing quickly as developers race to build high-end condominiums, but elsewhere in Myanmar, the pace of growth has been much slower.

Mandalay’s first condominium was built by Mann Myanmar Construction in 2013. Apart from this, there were no high-rise condominiums anywhere in the country,
including in Nay Pyi Taw, until last year.

However, since late 2014, a handful of companies have made plans to build high-rise projects in several towns. If the projects go ahead, these high-rises will become the first in their respective regions.

On May 23, Hong Kong-based company H&Co held a launch event in Yangon for a US$200 million luxury housing project called Platinum Pathein Condominium, which will be built in Pathein, Ayeyarwaddy Division.

“We hope to transform Pathein into an international city. We also have many plans to develop real estate projects in other townships across Ayeyarwady Region,” said an H&Co spokesperson.

The Platinum Pathein Condominium will be built on 18 acres of land. It will include 26 villas, three condominiums with a total of 410 units, as well as a shopping centre, a cinema and hotels. Each apartment will be priced at around K100,000 (US$92) per square foot.

“When we launched in Pathein we had pre-sold around nine units, and there is also some interest from prospective customers in Yangon. Yangon real estate is a new market for us,” said Ma Hla Yamin Phyu, from the project’s marketing department.

“Pathein is in a region that needs more development, and it is in a good location with good access to other regions. For example, people must pass through it to reach Myanmar’s popular beaches such as Chaungtha and Ngwe Saung,” said the H&Co company spokesperson.

Nan Htike Shwe Sin Company is building the first high rise building in Shan State, to be located in its capital city, Taunggyi. The 16-storey condominium, which will have 48 units, was launched in December 2014.
“Executive condominiums are being built in the major cities of Myanmar’s regions and states since 2014,” said chairman of Nan Htike Shwe Sin, U San Linn.
“However, although high rises are being built outside of Yangon, residents in other cities have not bought units. The main customers for these condominiums are Yangon residents,” he said.

He added that Taunggyi residents are still considering whether or not to buy units, as they are not familiar with condominium culture.

“They are worried because there is no grant lease, like when they own a house. But Yangon residents are familiar with condo culture, and are very interested in buying, because the price of one unit is around K200 million. This is half the price of a condo in Yangon,” he said.

Taunggyi may become the fourth city of Myanmar, so the company intends to build more condominiums there, said U San Lin.

Nay Pyi Taw’s first condominium is being built by First Myanmar Investment in collaboration with lighting company Krislite. The two-tower, 10-storey development will include 114 apartments, a car park, swimming pool and retail plaza, as well as an outdoor infinity pool, lounge, gym and playground.

“Yangon sales started on the 20th of March, and Yangon customers are more interested in the apartments,” said an FMI spokesperson at the time.

Yangon real estate agents said that the condominium market in Yangon is overcrowded because there are so many projects under construction, and that there are other opportunities for property investment in other developing townships across Myanmar.

“In the towns where condominiums are being built, the property market will improve once the projects are complete,” said real estate agent Ko Htun Htun.

H&Co also has plans to build a new city in Ngwe Saung for the tourism and business sectors in 2017, which will need around $1 billion in investment.

Source: Myanmar Times

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