Funds from the Union budget have been allocated to the construction of 11 residential buildings in Ayeyawun and Yadana.
Eighteen other housing projects will be carried out in cooperation with private companies under joint ventures.
The chairman of the Myanmar Construction Entrepreneurs Association submitted a proposal to Vice-President Myint Swe that the government provide more financial assistance for the Ayeyawun and Yadana housing projects, which have been undertaken by the Department of Urban and Housing Development and business people, as financial constraints had resulted in construction being put on hold.
In the past, construction projects were carried out with the use the state budget, as there were no investors willing to step up.
“Now we need investment. Our projects came to a stop because of a lack of financial means,” the chairman said. “The Ministry of Construction and private business people are joining hands on the construction of housing. We would like the vice-president to give his attention to the need for a speedy resumption of construction for the projects.
“These two housing projects are located in Dagon Seikkan Township, Yangon Region, and were planned as low-cost housing, affordable housing, with some higher-priced units to be built in the early stages.
“The low-cost housing accounts for 30 per cent of the projects and the higher-priced housing stock accounts for 70 per cent. The projects must be finished within three years.”
Min Htein, director-general of Department of Urban and Housing Development, had said on November 1, 2012: “The apartments will be sold though an instalment system ranging from 10 to 30 years. The initial payment is 30 percent of a salary of K 88,000. The remainder will be paid through the instalment system.”
Business people were given project permits and this resulted in the Ayeyawun and Yadana housing projects being run by four developers.
Then the designation “affordable housing” was used in place of “low-cost housing”. Some of these apartments now cost K20 million.
Observers say that all of a sudden, prices of apartments in Tamwe, Kyaukmyaung and Thingangyun climbed by 50 per cent. An apartment worth of K 25 million jumped to K 35 million. Ayeyawun and Yadana will construct 49 18-storey buildings, helped by contributions from the state budget and from construction companies.
Construction of six of the 18-storey buildings has been completed.
Source: Eleven
