Myanmar to construct 1 million homes

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A neglected building in central Yangon

Unmet demand for property in Myanmar has prompted the Burmese government to launch a plan to construct 1 million homes over the next 20 years, The Irrawaddy reported the Ministry of Construction as announcing.

The project is divided into five-year terms that will see the construction of about 50,000 houses annually, the Department of Human Settlement and Housing Development said.

The government has announced that it is seeking private investor assistance to work on the real estate development of major urban areas.

According to the 20-year plan, Yangon, Myanmar’s commercial core, will receive 50,000 new homes and the project would initially focus on renovating currently existing units.

Myanmar currently constructs about 7,000 homes each year, which falls far below the nationwide demand of 20,000 homes annually.

Price reduction still distant

Officials have warned that while the plan will placate soaring prices of overinflated real estate, the effort will take time before any price reductions are seen.

On top of increased demand from a growing population and incoming expatriates, higher construction costs have also stoked property prices in Myanmar.

While costs for construction materials were previously set around 4,000 kyat per square foot, the same materials now are set at market prices amounting to 10,000 kyat.

Admittedly, it seems, there is no guarantee that construction materials won’t completely offset the government’s efforts to satisfy the market.

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Reading Time: 1 minute

A neglected building in central Yangon

Unmet demand for property in Myanmar has prompted the Burmese government to launch a plan to construct 1 million homes over the next 20 years, The Irrawaddy reported the Ministry of Construction as announcing.

Reading Time: 1 minute

A neglected building in central Yangon

Unmet demand for property in Myanmar has prompted the Burmese government to launch a plan to construct 1 million homes over the next 20 years, The Irrawaddy reported the Ministry of Construction as announcing.

The project is divided into five-year terms that will see the construction of about 50,000 houses annually, the Department of Human Settlement and Housing Development said.

The government has announced that it is seeking private investor assistance to work on the real estate development of major urban areas.

According to the 20-year plan, Yangon, Myanmar’s commercial core, will receive 50,000 new homes and the project would initially focus on renovating currently existing units.

Myanmar currently constructs about 7,000 homes each year, which falls far below the nationwide demand of 20,000 homes annually.

Price reduction still distant

Officials have warned that while the plan will placate soaring prices of overinflated real estate, the effort will take time before any price reductions are seen.

On top of increased demand from a growing population and incoming expatriates, higher construction costs have also stoked property prices in Myanmar.

While costs for construction materials were previously set around 4,000 kyat per square foot, the same materials now are set at market prices amounting to 10,000 kyat.

Admittedly, it seems, there is no guarantee that construction materials won’t completely offset the government’s efforts to satisfy the market.

Do you like this post?
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