YCDC has revised land lease rates upwards in line with market price: Yangon Mayor

The rent on Yangon City Development Committee’s land has been raised during the incumbent government’s term, said Yangon Mayor U Maung Maung Soe.

“The land lease rates have increased in line with the market price. It is a fold increase,” he said.
Yangon Region Auditor General Daw Khin Than Hla told the regional Hluttaw on 8 January that a report on the Yangon Region government’s spending in the 2017-2018 financial year showed wastage of money as the YCDC’s land lease was priced too low.

“The Auditor General’s report pointed out low rent rates of YCDC land. However, it was way back in the 2017-2018FY. We have already modernized land grants and the rates have been revised, depending on regulations of the lease agreement. Furthermore, the Auditor General’s report also revealed a percentage increase along with the market price. We have raised them by quite a margin after the 2017-2018 report. The rates have been raised by percentage and fold,” said U Maung Maung Soe.

“The YCDC has discussed the land lease rate with entrepreneurs. The low rate is attributed to previously signed contracts,” said the Yangon Mayor.“The rent rates fixed in the previously signed contract were too low compared with the market price. Some contracts need to be revised. Some businesses, like the Yangon water boom, are still under discussion as they cannot afford to pay in line with the market price. This has been forwarded to the cabinet,” said U Maung Maung Soe.

“Three rates are charged for YCDC land, depending on the location. The rate is set at K1,323 per square feet for land in Group I locations, which include Seikkyikhanaungto, Hlinethaya, Shwepyitha, Mingaladon, and four Dagon townships. The rate is K2,645 per square feet in Group II areas, including Insein, North Okkalapa, Thakayta, Dawbon, Kyimyindine, Thingangyun, Ahlon, and South Okkalapa townships. A rent of K3,168 per square feet is charged in Group III locations — Tamway, Kamayut, Sangyaung, Mingala Taungnyunt, Hline, Mayangon, Yankin, Pazuntaung, Botahtaung, Lanmadaw, Pabedan, Kyauktada, Latha, Dagon, Seikkan, and Bahan townships,” said U Ko Ko Lin, head of the YCDC’s Playground, Park, and Garden Department.

The YCDC considers and revises the contract every year. As the municipal authorities revised contracts, the land rent income from the People’s Park and the Zaykabar Compound was K1 billion higher than in the previous years, he said. “Earlier, rental earned from the People’s Park was just K2.2-2.5 million per year. The YCDC committee members elected by the people discussed and revised the rent. In the 2018-2019 financial year, the rent for People’s Park was K1.469 billion per year. Similarly, the lease for Zaykabar Compound was raised to K340.227 million from K25 million per year,” said U Ko Ko Lin.

Some businessmen have appealed against the increase in rent, said Daw Hlaing Maw Oo, secretary of the YCDC. “We are calculating and carefully considering whether the rate should be fixed according to the prevailing market price. Some appeals and requests have been submitted to the committee. The prices can also vary depending on the business type, such as business park, restaurant, or commercial office,” she said.
U Maung Maung Soe also said that the Auditor General’s finding report 2017-2018 FY also contains incorrect information and the amended report shall be explained. (Translated by Ei Myat Mon)

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Source : The Global New Light of Myanmar

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