Myanmar’s-Property-Bubbl

Yangon property booms but rental market plunges

After Yangon’s housing market crashed due to COVID-19 impacts, it raised its head again this year as Myanmar keeps the pandemic under control. The real estate rental market is, however, falling, the experienced realtors said. The real estate sales go up a bit at present. Housing price does not appreciate as expected. The property is sold at a low price. The rental market crashes as the businesses still cannot resume for now, said U Maung Maung, a realtor.

Despite the COVID-19 containment measures under control, the real estate rental market is dropping. The rent plunges, and house owners let the tenants stay more months.To remedy the economic fallouts, some generous property owners pay back half of the rent for long-term tenants. That is a kind of mutual trust between owners and tenants, and humanitarian action in difficult times. Although the real estate market in Yangon has recovered, we still cannot set which particular township has good real estate sales. At present, it depends on the demand of the buyers.

Some buyers prefer rural sites, and some buy large farmland acres and roadside property. The real estate in Yangon downtown (six townships) slightly drops. The real estate market is not set like dollar and oil prices. We cannot confirm the market price of the properties in 45 townships of the Yangon Region. The reason why the real estate market booms again is that people like to invest in property rather than banking. The real estate market crashed in 2020, and it recovers this year. Nevertheless, the pricing is not that high amid the economic collapse triggered by the COVID-19.

Source: The Global New Light of Myanmar

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