Myanmar to enforce property regulations
Myanmar authorities are planning to set up a nationwide housing development corporation to stem soaring prices seen in the housing market, which have made prime property in Yangon more expensive than in the slumped markets of Los Angeles and Dubai, Thura Swiss, a Yangon-based consultancy, reported.
The new corporation, which is to be based on a private-public partnership, according to construction minister Kyaw Lwin, will be tasked to revise the largely underregulated housing market by enforcing price controls and higher property taxes.
Real estate taxes on buyers were already raised by 22 per cent earlier this year.
The shortage of property, especially serviced apartments, in Yangon has already lured large developers to the newly opened Myanmar market.
However, overall foreign investment into the country has fallen below the permitted amount, Mizzima, a local online media organisation, quoted the Directorate of Investment and Companies Registration as saying.
Investment into Myanmar stood at approximately $31 billion in September, about $10 billion short of the amount that was officially permitted in July.
Halted projects are the main cause for the mismatch, Xinhua reported. There are currently foreign investors with stakes in 232 projects in Myanmar, with those from China, South Korea, Thailand and the UK among the top.
Myanmar attracted $40.42 billion in foreign direct investment in 2011, according to figures published by Thura Swiss.
Myanmar’s economy is expected to expand 6.7 per cent in the fiscal year 2012-2013 (April to March), but unfavourable fundamentals such a heady inflation rate of 8.9 per cent in 2011 may keep investors at bay.
Another drawback is the delay of the new investment law, which has been expected to be passed in June 2012, but has still not been ratified by Myanmar’s president Thein Sein.
[caption id="attachment_4858" align="alignleft" width="300"] Construction in Myanmar[/caption] Myanmar authorities are planning to set up a nationwide housing development corporation to stem soaring prices seen in the housing market, which have made prime property in Yangon more expensive than in the slumped markets of Los Angeles and Dubai, Thura Swiss, a Yangon-based consultancy, reported. The new corporation, which is to be based on a private-public partnership, according to construction minister Kyaw Lwin, will be tasked to revise the largely underregulated housing market by enforcing price controls and higher property taxes. Real estate taxes on buyers were already raised by 22 per...
Myanmar authorities are planning to set up a nationwide housing development corporation to stem soaring prices seen in the housing market, which have made prime property in Yangon more expensive than in the slumped markets of Los Angeles and Dubai, Thura Swiss, a Yangon-based consultancy, reported.
The new corporation, which is to be based on a private-public partnership, according to construction minister Kyaw Lwin, will be tasked to revise the largely underregulated housing market by enforcing price controls and higher property taxes.
Real estate taxes on buyers were already raised by 22 per cent earlier this year.
The shortage of property, especially serviced apartments, in Yangon has already lured large developers to the newly opened Myanmar market.
However, overall foreign investment into the country has fallen below the permitted amount, Mizzima, a local online media organisation, quoted the Directorate of Investment and Companies Registration as saying.
Investment into Myanmar stood at approximately $31 billion in September, about $10 billion short of the amount that was officially permitted in July.
Halted projects are the main cause for the mismatch, Xinhua reported. There are currently foreign investors with stakes in 232 projects in Myanmar, with those from China, South Korea, Thailand and the UK among the top.
Myanmar attracted $40.42 billion in foreign direct investment in 2011, according to figures published by Thura Swiss.
Myanmar’s economy is expected to expand 6.7 per cent in the fiscal year 2012-2013 (April to March), but unfavourable fundamentals such a heady inflation rate of 8.9 per cent in 2011 may keep investors at bay.
Another drawback is the delay of the new investment law, which has been expected to be passed in June 2012, but has still not been ratified by Myanmar’s president Thein Sein.
