By-Laws Necessary for Condo Market to Pick up Steam

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To improve the lacklustre selling market for condominiums, officials need to enact condominium by-laws soon, said developers such as U Kyaw Kyaw Naing, managing director of iGreen Construction Company Limited.

Although the Condominium Law was enacted during the last week of January 2016, by-laws have not come into effect until recently.

The condo-selling market is still cool because condominium by-laws have not come into effect, until now. That has taken over 14 months, said U Yan Aung, general manager of Asia Construction.

“Developers cannot sell units to foreigners until now … It should not take over a year just to enact by-laws after enacting condo laws. The government should enact by-laws soon to raise the current cold real estate market,” he said.

Through the condominium law, 40 percent of condo units can be sold to foreigners and some foreigners are waiting to purchase units, said U Kyaw Kyaw Naing.

“As developers, we cannot sell to foreigners … Some are waiting for the condo law in order to buy units. Ownership will be more stable after the enacted law, so some foreign buyers are waiting. The government needs to enact the by-laws very soon to boost the property market,” he said.

The condominium law was drafted in 2013, and by the Union Parliament’s rules and regulations, after enacting the law in the legislature, the related government ministries are required to enact the by-laws within 90 days.

Although condo by-laws need to be enacted within 90 days after the law was enacted last year in January, until recently, the Ministry of Construction could not announce the timing of the enactment of condo by-laws.

Urban and Housing Development department director general U Min Htein said that they are trying to enact the condo by-laws soon, which will include detailed rules and regulations for both buyers and sellers.

“To enact by-laws, it takes time for negotiations between the government department and construction-related organisations to round up. We need to enact detailed rules and regulations by-laws, and we are trying to enact it as law very soon,” he said.

The selling market has gone cool as a result of potential buyers waiting for the condo by-law, said U Kyaw Kyaw Naing.
“The condo law has already been enacted as a law, and by-laws can be enacted within a few months. Many buyers are waiting for the detailed condo by-laws before they invest in housing units.”

Moreover, officials need to present detailed rules and regulations for the condo by-law, said U Aung Min, director of Myat Min construction.

“The government should enact detailed condo by-laws and need to show clearly what kind of visa-card holding foreigners can invest in condo units. Foreigners need to show [proof of] how many years they will implement business and what kind of businesses they will do. And also, there is a need to enact clearly for BOT [building operate transfer] buildings,” he said.

The condo-selling market has to depend on foreign buyers and investors because there are not many local buyers, although there are many luxury and high-rise housings are being built around Yangon, he added.

For the property market to do well, not only enacted by-laws but also a better banking systems are necessary for the instalments system to take place and to have units as collateral in banks, said U Aung Min.

“Many local and international buyers are waiting for banking systems to buy [condo] units. The units cannot be used as collateral in any bank to get a loan … But after enacting condo by-laws, ownership will be more stable,” he said.

 

Source: The Myanmar Times

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