Could overseas workers revitalise ailing Myanmar market?

20/10/2017 11:22

Property developers look to the Myanmar diaspora to usher a "golden era" in real estate. 

 

 

Myanmar citizens who have moved abroad to work will rejuvenate sentiment for the country’s condominium market, experts told the Myanmar Times. 

Around 1,350 visitors registered with a Myanmar real estate expo in Singapore have committed to purchasing property “for themselves and their relatives” in the newly democratised country, said Kevin Goos, managing director of ShweProperty.com which is mounting the event. “Myanmar people working in Singapore have a higher salary, so they can afford better homes with modern design.”

Could overseas workers revitalise ailing Myanmar market?
Traffic in Yangon CBD (Photo: Phuong D. Nguyen/Shutterstock)

The company has moved USD2 million worth of sales in the run-up to the event and is expected to close another USD5-10 million in transactions, Goos reported. 

“Right now, a lot of relatives from Myanmar people working in Singapore are visiting our projects and closing deals directly.” 

Property developers are reassessing their strategies in Myanmar, as housing continues to ail from a glut of supply. Project delays and cancellations are expected to be the norm for the rest of the year in Yangon, research company FMR stated in its H1 report.

By banking on overseas Myanmar workers, the country could follow the trajectory of other countries in Southeast Asia. “In Thailand, starting in the early 2000s, most of the condo buyers were from overseas, with Thais preferring to purchase landed houses and affordable projects," Goos said. “In Cambodia, starting in 2009, the market has followed the same path with 80 percent of the condominium purchases coming from overseas buyers, mostly from countries in Southeast Asia and China."

Foreign direct investment could usher more turnovers in luxury real estate and vertical developments with the implementation of the condominium law, which have yet to enact bylaws. The enactment of such legislation will herald the "next golden era of real estate development," U Yan Aung, managing director of Asia Construction, reassured the Times.

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