Myanmar free zone slashes land prices by 30%

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myanmar_international_terminal_thilawaThe price of land in Myanmar’s Thilawa Special Economic Zone will be reduced by 30 per cent to encourage investors as real estate prices skyrocket in other industrial zones in Myanmar.

“Price of industrial zones are at an all-time high and both local and foreign investors are finding difficulties to invest here. So we are going to reduce 30 per cent of the current prices for the Thilawa Special Economic Zone in order to create a favourable business environment,” said Win Aung, president of Thilawa SEZ Public Holdings Ltd.

The Thilawa SEZ has attracted both local and foreign investors to set up garment factories, food processing companies, spare parts operations and much more. However land speculators have driven up the price of real estate creating disincentives for investors.

“The prices have gone up because of some brokers who want to speculate in real estate sectors. In fact, they do not run businesses and only speculate for their own benefit,” said a businessman from Hlaing Tharyar Industrial Zone.

Thilawa SEZ Public Holdings Ltd. said it will award leases to companies who actually want to run their business. They will have to start their operations within an appointed time frame and action will be taken if the companies fail to stick to their promises.

“We practice a 50-year lease, and if the business enterprises want to extend, they are allowed to for another 20 years. So in total they are getting a 70-year lease. The expected time for announcing the new price for the Thilawa SEZ is either April or May,” said Win Aung.

According to one broker, one acre of land in the Thilawa SEZ currently goes for  250 million kyat ($250,000). Apart from the Thilawa SEZ, the prices of real estate in other industrial zones have been on the rise.

The Thilawa SEZ occupies more than 6,000 acres in the southern district of Yangon Region, and foreign investors have criticised land prices in Myanmar for being too high.

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Reading Time: 2 minutes

The price of land in Myanmar’s Thilawa Special Economic Zone will be reduced by 30 per cent to encourage investors as real estate prices skyrocket in other industrial zones in Myanmar.

Reading Time: 2 minutes

myanmar_international_terminal_thilawaThe price of land in Myanmar’s Thilawa Special Economic Zone will be reduced by 30 per cent to encourage investors as real estate prices skyrocket in other industrial zones in Myanmar.

“Price of industrial zones are at an all-time high and both local and foreign investors are finding difficulties to invest here. So we are going to reduce 30 per cent of the current prices for the Thilawa Special Economic Zone in order to create a favourable business environment,” said Win Aung, president of Thilawa SEZ Public Holdings Ltd.

The Thilawa SEZ has attracted both local and foreign investors to set up garment factories, food processing companies, spare parts operations and much more. However land speculators have driven up the price of real estate creating disincentives for investors.

“The prices have gone up because of some brokers who want to speculate in real estate sectors. In fact, they do not run businesses and only speculate for their own benefit,” said a businessman from Hlaing Tharyar Industrial Zone.

Thilawa SEZ Public Holdings Ltd. said it will award leases to companies who actually want to run their business. They will have to start their operations within an appointed time frame and action will be taken if the companies fail to stick to their promises.

“We practice a 50-year lease, and if the business enterprises want to extend, they are allowed to for another 20 years. So in total they are getting a 70-year lease. The expected time for announcing the new price for the Thilawa SEZ is either April or May,” said Win Aung.

According to one broker, one acre of land in the Thilawa SEZ currently goes for  250 million kyat ($250,000). Apart from the Thilawa SEZ, the prices of real estate in other industrial zones have been on the rise.

The Thilawa SEZ occupies more than 6,000 acres in the southern district of Yangon Region, and foreign investors have criticised land prices in Myanmar for being too high.

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