Is Yangon real estate market really depressed?

The long-term market depressed has brought an unexpected shock to the real estate industry in Myanmar. Less customer base, weak policy support and other factors have leaded enterprises and investors to reduce confidence in the real estate industry in Myanmar. Enterprises and investors have reduced investments and speed. Its reality is not the case, in 2013 and first half of -2014, the purchase of large real estate projects customers mostly were Myanmar, “Pyramid tip” investment customers, the average to only a few projects at that time, customer volume appears to be hot. But this part of the customer base is scarce, then the total purchase of customers in the market has not increased, but the volume of construction development has increased substantially, result in a significant reduction in the average customer volume for each project. The market phenomenon is extremely cold, compared to the market before the hot phenomenon almost does not exist. But small projects developed by local firms are not as bad as overall sales, average monthly sales of 5-8 units, because of its more traditional sales model, forms a very cold market appearance.

From the current market point of view, the typical projects are mostly foreign or foreign-funded enterprises developed. Therefore, companies are paying more attention to these more competitive projects in terms of statistical data, ignoring small projects developed by local firms, thereby ignoring the customer groups that buy them.

Total Number Of Sets 213
The Total Area(sq.ft) 351189
Area(sq.ft) 1502-2169 1346-1481 790-1061
House Type 3+1Bedroom 3Bedroom 2Bedroom
Sets Number 133 40 40
Quantitative Proportion 62% 19% 19%
The Total Area Of ​​The Apartment 257675 55460 38054
The Total Area Ratio 73% 16% 11%
The above is the basic information of the 18 floors project developed by a local enterprise. The total area of 1502 sq.ft – 2169 sq.ft ( 3 bedroom +1 room) accounts for 73% of the whole project; for example, 1502 sq.ft ( 3 bedroom +1 rooms)are priced at $150 /sq.ft, the total price is = 1502 x 150= 225300$. According to statistics, the sale speed of its project is about 7 units / month.

 

Most of the small projects developed by local enterprises are lower in price, however due to its large size, the total price of products is high. And decoration quality is low, poor facilities, unit area waste more and other factors, the product price performance is not high. In this case, why high quality projects can’t be accepted by customers? We need to tap the relationship between the value of the project and customer needs, as a breakthrough in sales. YGSEEK ——Myanmar most professional real estate and financial service providers, the company established in Myanmar for many years, from national policy, local conditions to market, customer needs and customer resources and from marketing strategy, advertising promotion to media, printing and production process have in-depth understanding, and with the rapid ability to integrate resources, can provide a strong professional support for Real Estate Company.

YGseek 报广(CMYK)

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