Property weak on canned tax amnesty bill

With interest in investment properties in Mandalay expected to be lackluster in the coming months, property agents reckon demand will likely centre on homes priced below K1,000 lakh.

“Currently, most sectors of the economy are slowing, so we do not see much demand for resale properties,” U Wunna Soe, a property agent from Poe La Min Real Estate Agency, said.

“The economy, including the real estate sector, has been slow. Only serious home buyers will be interested in the property market. They will mostly be interested in homes priced below K1,000 lakh,” he said.

The other reason for the weak appetite for property, especially for investment purposes, is the recently canned tax amnesty bill. If enacted under the 2018 Union Tax Law, that bill would have allowed holders of previously undeclared income to bring their money back into the economy at a tax rate of just 3 percent for the first six months.

“The real estate sector had hoped that the market would become active again with the influx of funds back into the economy,” U Wunna Soe said.

“However, the bill failed to be enacted and the property market will likely continue to slow,” he added.

The property sector has been in the doldrums since 2016, when the government imposed taxes of between 15pc and 30pc on various properties, depending on their value. As such, demand for properties above K300 lakh has slowed substantially in the last two years.

Source: Myanmar Times

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