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High tax rate resulted in low demand in condominium market

With the high tax rate levied on property, the luxury condominium market is cooling, the developers said. According to the new Condominium Law, 20 per cent of the value of a condo worth between Ks 30 and Ks 100 million if the buyers failed to explain how they earn and 30 per cent for a condo valued above Ks 100 million have to be paid. Sellers have to pay 10 per cent of the value.

In addition, there is a 7 per cent stamp duty on the sale of property in the three biggest cities of Myanmar — Yangon, Mandalay and Nay Pyi Taw. A 5 per cent stamp duty is levied on real estate dealings in other cities. With the appreciation of the US dollar, the sale of middle- quality and high-quality condominiums are often conducted using dollars instead of kyats, it is learnt from the real estate market.

The price of luxury condominium apartments slumped by about 15 per cent because of the cool market, whereas other condominium prices went up.

Source: The Global New Light of Myanmar

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