With its high upfront fees, Yangon’s active rental market could be incentive enough for investors to purchase properties in Myanmar.
Rental season in Myanmar has started and will be “extremely active” until the Thadingyut Festival in October, Echo Myanmar senior account executive Kyi Phyu Sin told Myanmar Times, citing experts with the Aung Si Hein Real Estate company.
Rentals in Yangon offer higher fees than neighbouring countries such as Vietnam or Thailand, Kyi Phyu Sin added, citing experts with the Myanmar Real Estate Services Association. A luxury condominium development, Golden City, offers two-bedroom rentals at USD2500-3000 a month, while three-bedroom and four-bedroom units are priced at USD3,500 and above, respectively.
“Investing in luxury real estate can be a reliable opportunity, as with the market situation, the purchase of completed units and early renting can provide not only a return of investment, but a profit,” Kyi Phyu Sin wrote.
Foreign investors can enjoy more reasonable regulations in partnership with competent local businesses, wrote Echo Myanmar founder Anthony Larmon in Coconuts Yangon.
“Myanmar is rapidly democratizing and has revised and enacted a new investment law—one that, among other things, allows foreigners to own up to a 35 percent stake in a local business before it is considered a ‘foreign’ business. Previously, that threshold was one percent,” Larmon said in a rejoinder to an article “Don’t Invest in Myanmar, Here’s Why” by Reid Kirchenbauer.
Myanmar’s Condominium Law will allocate 40 percent of sellable space in condominium buildings to foreign property seekers. Drafted in 2013, the legislation still lacks specific bylaws, which could arrive early this year.
The bylaws will be a big change for the sector, said Yoma Executive Director Cyrus Pun. “There was a very bullish market from 2011 as the economy opened up and investment came in, but residential property has quietened down quite a lot in the past 18 months.”
Kirchenbauer ended his article on a hopeful note, saying that Myanmar’s made “a lot” of progress. “For all we know, it could be Asia’s best country to invest in a decade.”
Source: Property Report
;
To see more of our client click