Demand from education providers jolts real estate market

The Yangon real estate sector has received a much-needed boost from an unlikely source: education providers. Since foreigners were permitted to wholly invest in the provision of educational services in the country earlier this year, demand for high-standard condominium and office units has surged.

This is because education investors find leasing or buying condominium or new office unit to open schools much more convenient than searching for land on which to build the schools or establish campuses.

Despite allowing 100pc investment in education, there are land issues in Yangon and many find renting a condo or a flat in which to open basic education schools more convenient, said Dr. Htoo Myat Naing from Estate Myanmar real estate agency.

“Most of our enquiries are from short-term course providers and post-graduate courses which don’t need much space,” he said.

One example is Kaplan Myanmar University College, a subsidiary of US educational program provider Kaplan Inc, which opened its campus in the same compound as Diamond Condo on Pyay Road in June.

That’s not all. During the same month, KI College Singapore announced that it would open a new learning centre at the ground floor of Golden City Business Center in Yankin township in August.

The development bodes well for the real estate developers, many of which have found it difficult to offload existing supply of high-class condominiums and office units, said U Kyaw Sithu, sales director at Success Property Consultant Company.

Existing condominium tenants may also benefit. “We have seen a rising number of international tenants and families occupying the condominium projects. Many parents don’t want to travel far from home to send their children to school.

That international schools are now able to open within the same compound is beneficial both to parents and the school,” U Kyaw Sithu said.

One example is Dulwich College (Yangon), which has opened two schools in Pun Hlaing Estate in Hlaing Thar Yar and StarCity in Thanlyin. The British International College announced last month that it will invest a further $8 million for stadiums and buildings for the school in StarCity. Dulwich, Pun Hlaing and and StarCity are owned and run by Yoma Strategic.

“Location is important to education investors. It should also have a proper space and surrounding enabling it to expand the number of students in the long term. Condominium estates or mixed development projects are able to offer this,” said U Kyaw Sithu.

“As it is now much easier for private schools to open in Myanmar, we hope there will be more growth and progress in the property and education sectors,” he added.

Source: Myanmar Times

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