Myanmar’s new government has been in power for more than four months already. According to the people’s point of view; both the rich and the general public, even after the ruling party promulgated the “Hundred Days’ governance plan”, there haven’t been much changes in the country, especially in the real estate industry. So far, more favorable real estate policies on control and regulations have not been seen yet.
But if you dig deeper, it is not difficult to discover the development the current government has brought in contrast to the past. In any country, there is a period of adaptation and adjustment to any new government. Let alone replacing a new government, it takes days or even months to replace a new management team in a company and for the team to adapt to the new culture of the enterprise.
At present, there are two major interesting events in Myanmar: the first being Aung San Suu Kyi’s visit to China in which bilateral agreements with China conducive to the development of the country will be signed. The second event will be held on August 31st, where there will be a general assembly for the country’s stability, which is an essential prerequisite for economic development. Although domestic and foreign communities are quite optimistic about the new ruling party, it’s worth bearing in mind that the development of the country is a long-term and continuing process; not an immediate effect. It also requires joint efforts from citizens to protect, engage in and assist with the development of the country.
Aiming at the real estate market, our company released the market review, “Myanmar government to encourage real estate industry development and standardizing the market proposed in article (a)”. The Myanmar real estate market is currently in a very instable stage in two main aspects: one, different building codes of each foreign company resulting in chaos in the construction market and two, lack of advanced development ideas of local enterprises causing too much resource wastage and unreasonable project structures, poor housing styles and uncomfortable living spaces at large. As the developers are eyeing the same groups of customers for sales, it is causing large inventory that could result in corporate capital chain rupture; the final stage could be … bankruptcy. Current government regulations on the real estate industry are hindering some investors’ interest in investing in the country. However, they are in favor of the real estate market, which is more robust and has long-term development intentions, as some of the developers do not invest in it with the right intentions.
The performance of current real estate market sales is in bad shape; many developers lay off employees to reduce operation costs. 2013 “sleight of hand tricks, sale of flats” stage is over and ceased to exist. Even if developers put some construction equipment in the project, it will rather be speculative than feasible. In the current real estate market, small project sales are doing better. After our in-depth analysis, the common features of successful development sales are · Image of the company doing projects and part of the project has been capped,· Local well-known enterprises,· Reasonable price · Competitive product advantages. In short, in a regulated market, the correct investment philosophy, accurate product positioning, innovative marketing technique and excellent engineering are the future direction of real estate development.
Yangon Seek Service Co., LTD