Property buyers eye Dagon land as owners sell for losses

For buyers interested in purchasing land or homes in Dagon, now could be a good time to take closer look at the property market in the area.

Land prices in South Dagon have been falling even though property sales have been robust.

According to Ma Cho New, a local real estate agent, sales improved after one businessman bought four acres of land in the South Dagon Industrial Zone.

However, land prices have been falling sharply in the area and land owners have been selling their land at a loss.

“These days, land transactions take place at lower prices in South Dagon,” she said.

“At the moment, a 40 ft-60 ft plot of land located on the main street area in South Dagon can sell for about K28 million compared to around K40 million before. Land owners are re-selling their land at low prices,” she said.

These include those who bought their land at higher prices when demand was higher in the past. “They bought land for investment purposes but I think they don’t want to continue holding the land because they believe that prices won’t rise anymore,” she said.

But why are land prices falling in South Dagon? One reason is the Yangon regional government’s move to control land prices in order to carry out low-cost housing projects and build new towns in the area .

“For this reason, investors believe land prices will no longer rise going forward. So, they are willing to sell their land at lower prices,” said Ma Thuzar May, a real estate agent in North Dagon township.

“Because of the new government’s plan to implement land price control, most speculators believe that land prices are more likely to fall than rise. As a result, there are no buyers for investment purposes.

“Only buyers who want to live or do business here are buying land and property here,” she said.

Land prices in East Dagon and North Dagon townships have been falling, too. Now, interest among buyers who want to buy land to build and live on is rising, said Ma Cho Nwe.

“In East Dagon township, a 40ft -60ft plot of land which cost nearly K50 million before is now only K35 million. In North Dagon township, a similar plot of land which cost K80 million before is now about K45 million,” she said.

Source: Myanmar Times

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