Yangon - Realtors Warn Over Property Bubble

[SeaVisionBurma]

Realtor warns of looming political disaster as more and more Yangon city residents are priced out of the market by surging prices

By Myat Nyein Aye | Sunday, 07 July 2013 From The Myanmar Times

Luxury projects like the Strand Condominium, above, are appearing across the city, pricing most residents out of the market. Photo: Staff

Realtors see no end in sight for surging property prices in Yangon, with some warning that the number of city residents being prices out of the market is getting dangerously high.

Ko Htun Htun, the owner of Phoenix real estate agency, said he saw no signs of cooling in the market despite a two-year surge in prices that has seen properties in one township increase fourfold. “Yangon’s real estate market had been rising for at least the past two years,” he said

“Demand and prices in the outer suburbs are particularly strong, with a number of infrastructure and development projects boosting interest in those areas.”He added that land in South Okkalapa township is in huge demand.

Read the full article here: http://www.mmtimes.com/index.php/business/property-news/7363-no-end-in-sight-to-property-boom.html

[DagonKhan]

From that article:-

“If land prices rise continuously, where are ordinary people going to live in Yangon? They will sell their houses because the price is attractive, but then they will not have enough money to buy another place to live,” she said.

I know of two local families who are now in trouble because of this. Someone comes along offers them a shed load of cash, they take it and now they can't find anywhere for that money in their local area (which they thought they knew so well).

I also know of one foreign couple currently holed up in a hotel who can't find anything around Inya Lake/Parami for the US$4,000/month that their Company has given them as an allowance.

Houses that are now fetching US$4,000/month were US$400-800 just a couple of years ago. That's how much they have increased.

[SeaVisionBurma]

Situations like the one you described above are all too common now, hence I thought posting that article was relevant as a commentary.

For a realtor to say the bubble is going to be burst (instead of a financial advisor or market analyst) is certainly telling.

Some of the prices of new apartments I have seen (off the plan near downtown) are simply ridiculous examples of unscrupulous developers gouging cash-happy buyers while the market remains over inflated in price, and poor in quality new offerings.

[superyacht]

Rents have skyrocketed here for sure, but you can still get 5-600U$ / mth places reasonable condition not that many miles from downtown.

My question is why downtown, there is not really a commercial business centre, rents are way cheaper around the airport or north. Power and internet are a problem but they are still an issue all over Yangon.

This country is not westernized things work differently, foreigners come in expecting to get all the latest facilities, it’s not going to happen in the short time the country has embraced capitalism, give it time.

J

[Kiggs]

From that article:-

“If land prices rise continuously, where are ordinary people going to live in Yangon? They will sell their houses because the price is attractive, but then they will not have enough money to buy another place to live,” she said.

I know of two local families who are now in trouble because of this. Someone comes along offers them a shed load of cash, they take it and now they can't find anywhere for that money in their local area (which they thought they knew so well).

I also know of one foreign couple currently holed up in a hotel who can't find anything around Inya Lake/Parami for the US$4,000/month that their Company has given them as an allowance.

Houses that are now fetching US$4,000/month were US$400-800 just a couple of years ago. That's how much they have increased.

Not sure what the foreign people are looking for but 1300USD get you a place in Yankin. We have a ground floor 2 bed (converted to one) flat in a nice gated place. Think they need to stay away from GV

[DagonKhan]

From that article:-

“If land prices rise continuously, where are ordinary people going to live in Yangon? They will sell their houses because the price is attractive, but then they will not have enough money to buy another place to live,” she said.

I know of two local families who are now in trouble because of this. Someone comes along offers them a shed load of cash, they take it and now they can't find anywhere for that money in their local area (which they thought they knew so well).

I also know of one foreign couple currently holed up in a hotel who can't find anything around Inya Lake/Parami for the US$4,000/month that their Company has given them as an allowance.

Houses that are now fetching US$4,000/month were US$400-800 just a couple of years ago. That's how much they have increased.

Not sure what the foreign people are looking for but 1300USD get you a place in Yankin. We have a ground floor 2 bed (converted to one) flat in a nice gated place. Think they need to stay away from GV

They're looking for 3 - 4 bedroom houses around the Inya Lake area (i.e. north of Golden valley) with a garden and all the extras. To be fair, 2 years ago they could have had a mansion for that, now it's a different story. It all depends on what you're looking for really.

What's GV btw?

[SeaVisionBurma]

Golden Valley DK! (sorry couldn't resist)