Condominium prices will shoot through the roof and reach its peak in the next two years if foreigners are allowed to purchase them, market experts and Myanmar Real Estate Services Association sources say.
“There is a strong possibility of the prices going higher if foreigners are allowed to buy condos. The number of condos in Yangon is still too small and demand is much higher than the supply. Also, the low-cost housing projects haven’t finished yet,” U Than Oo, vice chairman of-Myanmar Real Estate Services Association, said.
Experts say Yangon needs to provide 20,000-30,000 apartments to accommodate the rising population in the city, while the supply has been hovering around 7,000.
“The demand is very high. If foreigners are allowed to buy condos, there is no way the price will fall, it will only go up,” a real estate agent said.
In Vietnam, construction business has been sluggish recently as the real estate bubble had burst, causing prices to fall sharply. “In Myanmar the bubble has just started to grow up,” U Than Oo said.
“In 2015, there will be not enough hotel rooms for foreign visitors. As investment begins to flow in, condo prices are destined to rise,” said U Than Naing, managing director of Shwe Zapudeik real estate.
“Myanmar people should be given the first priority to purchase condos. After taking care of the local demand foreigners can be allowed, so that the condo prices don’t become too high for locals,” he said.
Condo prices in Thailand range between $400,000-500,000 and in Singapore it can go up to $16 million. Due to a dearth of high-quality condos in Yangon, prices of moderately-good quality and even mediocre condos have skyrocketed recently, realtors say.
Source: Myanmar Business Today
