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Myanmar Property Markets Today
AREA Press Release No. 178/2019: April 05, 2019

Dr.Sopon Pornchokchai, Ph.D. Dip.FIABCI, MRICS
President, Agency for Real Estate Affairs (AREA)

Dr.Sopon conducted a survey on Myanmar property markets outlook, 2019-2020.  The findings are very interesting for Myanmar investors as well as foreign real estate professionals and investors in this region.

 

On March 25-26, 2019, there was an Annual Convention of the Myanmar Real Estate Services Association (MRESA) at the Union of Myanmar Federation of Chambers of Commerce, Yangon.  Dr.Sopon Pornchokchai, President, Agency for Real Estate Affairs who is also a council member of the ASEAN Real Estate Network Alliance (ARENA) was invited to this event.  There were some 300 participants.  He conducted a survey to some 60 participants who are mostly senior real estate agents in Myanmar.  The following are the results:

 

Market Assessments

Myanmar economy was assessed at 5.4 out of 10 in 2019.  This implied that the economy was not performing well this year.  However, there was a hope that in 2020, it would be somewhat better at the score of 6.7 out of 10.  Considering Myanmar property markets, it was assessed at 5.4 which was similar to Myanmar economy.  However,  in 2020, it should be recovered.  It was assessed at 6.8 out of 10 in 2020.

 

Assessment of Myanmar Experts

Assessment 2019 2020
Myanmar Economy 5.4 6.7
Myanmar Property Markets 5.4 6.8
Note: Full score is 10.    

 

Sectors Booming in 2019

Rental  properties particularly rental apartments for foreigners were considered most popular development (36%) under the boom in Myanmar today followed by apartments for local buyers (15%).  Agricultural land and (luxury) condominiums were the third in the priority with 12%  Other interesting developments included industrial properties, hotel, housing and land.

 

Real Estate Sectors which is booming in 2019

Rental properties 36%
Apartment 15%
Agricultural Land 12%
Condominium 12%
Industrial properties 9%
Hotel 6%
Housing 6%
Land 3%

 

Developments within Yangon

According to Myanmar property experts who are mostly agents, Thilawa is the most popular district in Yangon with intensive developments followed by North Dagon, Kamayut and Yangin.  However, there is a diversity of popular development locations including Dagon, East Dagon, Thanlyian, Bahan, Downtown, Hlegu, New yangon Development, South Okkalapa, Dala, Emerald Bay, Hlaingthaya, Hmawbi, Latha, Min Dhama, Sanchaung, Shwepyitha, and South Dagon.

 

 Popular Locations in Yangon

Thilawa 19%
North Dagon 11%
Kamayut 9%
Yangin 8%
Dagon 6%
East Dagon 6%
Thanlyian 6%
Bahan 4%
Downtown 4%
Hlegu 4%
New yangon Development 4%
South Okkalapa 4%
Dala 2%
Emerald Bay 2%
Hlaingthaya  2%
Hmawbi 2%
Latha  2%
Min Dhama 2%
Sanchaung 2%
Shwepyitha 2%
South Dagon 2%

 

Cities with Intensive Real Estate Developments

Definitely, Yangon was the most popular development destination (37% from the total).  It was a formal administrative capital city but it is still the economic capital city of Myanmar.  Next to Yangon was Mandalay (25%) followed by Bago, Pyin Oo Lwin and Taunggyi.  Naypyidaw, the current administrative capital city was ranked as the seventh in the priority.

 

Cities with Intensive Real Estate Developments

Yangon 37%
Mandalay 25%
Bago 6%
Pyin Oo Lwin  6%
Taunggyi 6%
Dawei 4%
Naypyidaw 4%
Myeik 3%
Bagan 1%
Heho 1%
Kalaw 1%
May Myoe 1%
Myawaddy 1%
Myitkyina 1%

 

Where to Buy Abroad

It is interesting to see where would Myanmar Buyers would buy property abroad.  It was found that Thailand was in the top list at 36% followed by Singapore 32%.  Malaysia, USA and Vietnam were the third in the priority.  Japan, Australia, Cambodia, Hong Kong, Indonesia, Korea and United Kingdom were also mentioned.  Although Singapore was mentioned but property prices there were so high.  Property taxes and transfer fee were also very high.  Therefore, in real practice, it might be difficult for Myanmar investors to buy property there.

 

Where Myanmar Investors to Buy Properties Abroad

Thailand 36%
Singapore 32%
Malaysia 7%
USA 5%
Vietnam 5%
Japan 4%
Australia 2%
Cambodia 2%
Hong Kong 2%
Indonesia 2%
Korea 2%
United Kingdom 2%

 

In sum, Myanmar economy and Myanmar property markets were assessed a little pessimisticly in 2019; however, in 2020, they were appraised better.  This implies that the markets would recover over time.  Rental  properties particularly rental apartments for foreigners were considered most popular development (36%) under the boom in Myanmar today followed by apartments for local buyers (15%).  Thilawa is the most popular district in Yangon with intensive developments.  Yangon was the most popular development destination (37% from the total). Next to Yangon was Mandalay (25%).  Buying properties abroad, Thailand was in the top list at 36% followed by Singapore 32%.