Dagon City’s Demise Casts Doubts on Myanmar

[Jonathan Fairfield]

Dagon City’s Demise Casts Doubts on Myanmar

Developers uncertain about Asian market after Buddhist monks block luxury project

By SHIBANI MAHTANI

YANGON—The $300-million Dagon City development promised to bring a touch of luxury to this decaying city. The design included hundreds of plush apartments, a high-end mall and thousands of square feet of desperately needed office space.

Its biggest selling point was that it overlooked the Shwedagon Pagoda, the spiritual heart of Myanmar and a magnet for visiting dignitaries such as President Barack Obama.

A government decision this month to ax the project and four others amid opposition from Buddhist monks, however, has left developers wondering if their investments are safe in one of the world’s fastest-growing real-estate markets.

Since Myanmar began to open up in 2011 after decades of military rule, condominiums and grade-A office space have doubled or sometimes tripled in price as foreign multinationals scope out opportunities and set up local offices.

As rents rose to match that of office space in Singapore, investors have made big bets that prices could rise further. Myanmar’s real-estate sector now accounts for $2.2 billion, or 4% of overall investment in the country.

Read more: http://www.wsj.com/articles/dagon-citys-demise-casts-doubts-on-myanmar-1437471185

[Katipo]

Doubts for who? Big Big Business? That they can't simply go in and steam roll whatever they want where ever they want with no respect for local customs or the environment like they have in so many other developing countries? I think the Govt of Myanmar should be applauded for this.