Myanmar property prices take off
Undersupply of housing, industrial land, hotel rooms and shopping space has caused a massive surge in Myanmar’s property prices that have already reached levels to deter investors, observers say.
With foreign investors rushing into the country after the US and Europe began lifting sanctions, office and residential rents are also soaring.
Adding to the problem is rampant speculation by local oligarchs that made their money mostly in jade mining and drug trade and have excellent ties to the government, which, in turn, does nothing effective to tighten regulations and rules in the property sector. Real estate agencies in Yangon are reporting rising cases of property flipping, in which a person buys a property for a certain price in the morning and sells it again later that day for a higher price.
Prices for lots in the few industrial zones around Yangon have reached twice the prices of neighbouring Thailand. Land in the Hlaingthaya Industrial Zone, where mainly garment factories and light industries are located, is currently valued at $530,000 an acre, twelve times the price of industrial land in Orlando, Florida, for example.
Prices for land surrounding newly developed special economic zones, such as Thilawa and Dawei, also have dramatically increased due to high demand in recent months, already surpassing the cost for land in China’s industrial cities.
Office rents have tripled from 2011 to $65 a square meter in 2012, and may rise to $150 in the next few years, according to Tony Picon, associate director of research at property broker Colliers International Thailand.
Apartment rents for foreigners in Yangon, the country’s business capital, also went through the roof due to a serious undersupply of condominiums and serviced apartments, having reached the level of Bangkok in city center prime property rents.
Average rent per month in Yangon for prime property:
Apartment 1 br, city center: $570
Apartment 3 br, city center: $970
Average apartment price per square meter in Yangon downtown: $1,230
(Source: Real estate agencies)
Undersupply of housing, industrial land, hotel rooms and shopping space has caused a massive surge in Myanmar's property prices that have already reached levels to deter investors, observers say. With foreign investors rushing into the country after the US and Europe began lifting sanctions, office and residential rents are also soaring. Adding to the problem is rampant speculation by local oligarchs that made their money mostly in jade mining and drug trade and have excellent ties to the government, which, in turn, does nothing effective to tighten regulations and rules in the property sector. Real estate agencies in Yangon are...
Undersupply of housing, industrial land, hotel rooms and shopping space has caused a massive surge in Myanmar’s property prices that have already reached levels to deter investors, observers say.
With foreign investors rushing into the country after the US and Europe began lifting sanctions, office and residential rents are also soaring.
Adding to the problem is rampant speculation by local oligarchs that made their money mostly in jade mining and drug trade and have excellent ties to the government, which, in turn, does nothing effective to tighten regulations and rules in the property sector. Real estate agencies in Yangon are reporting rising cases of property flipping, in which a person buys a property for a certain price in the morning and sells it again later that day for a higher price.
Prices for lots in the few industrial zones around Yangon have reached twice the prices of neighbouring Thailand. Land in the Hlaingthaya Industrial Zone, where mainly garment factories and light industries are located, is currently valued at $530,000 an acre, twelve times the price of industrial land in Orlando, Florida, for example.
Prices for land surrounding newly developed special economic zones, such as Thilawa and Dawei, also have dramatically increased due to high demand in recent months, already surpassing the cost for land in China’s industrial cities.
Office rents have tripled from 2011 to $65 a square meter in 2012, and may rise to $150 in the next few years, according to Tony Picon, associate director of research at property broker Colliers International Thailand.
Apartment rents for foreigners in Yangon, the country’s business capital, also went through the roof due to a serious undersupply of condominiums and serviced apartments, having reached the level of Bangkok in city center prime property rents.
Average rent per month in Yangon for prime property:
Apartment 1 br, city center: $570
Apartment 3 br, city center: $970
Average apartment price per square meter in Yangon downtown: $1,230
(Source: Real estate agencies)
