YCDC takes ownership of nearly 500 apartments in Yangon

The Yangon City Development Committee (YCDC) has taken temporary ownership of 496 apartments in Yangon, and leased 238 units to government employees. Now the committee will raise the rental fees by 10 percent starting with the beginning of 2020 Fiscal Year, according to U Maung Maung Soe, Mayor of Yangon.

When a legitimate owner of an apartment is not known or in dispute, the YCDC will take ownership of the property. During that time, the YCDC may lease the apartment to government employees, but will not allow commercial activities on premises. When ownership is established, the committee will hand the apartment back to the real owners.

Questions on ownership can happen when an owner dies, but there are no surviving relatives. Similarly, an issue can come up if the next of kin cannot be located or is out of the country. Finally, domestic disputes within a family on legitimate ownership can also cause the YCDC to step in.

In 2017, the YCDC leased apartments in Kyauktada Township, Lanmadaw Township, Pabedan Township, and Latha Township at a rate of K4 per square foot. Apartments in Botahtaung Township and Pazundaung Township were leased at a rate of K3.2 per square foot, and those in other townships at the rate of K2.4 per square foot.

The YCDC then raised the rental fees in 2018, by a factor of 10 thereby bringing the cost up to K40, K32, and K24 per square feet respectively.

“Despite the raise, the rate of K30 per square feet in Kyauktada and Pabedan Townships equals about K20,000 per month, while the market rate in those areas is around K200,000-250,0000 per month. There is clearly a big price gap between the market rates and YCDC’s fees,” Daw Kyipyar, a regional lawmaker, pointed out.

Yangon City Development Committee received K4.8 million in FY 2016 from leasing the apartments. They collected K3.8 million in FY 2017, K68.5 million in FY 2018, and K35.3 million during the six-month 2018 Transitional Fiscal Year.

There is a big demand for housing in Yangon as its population is increasing rapidly due to urbanization. The government is also trying to meet the demand by implementing housing projects, but has not managed to meet demand. Moreover, apartment prices are still higher than people can afford.

Source: Myanmar Business Today

To see the original article click link here

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.