A. Hot News Announce
1.Dynamic News Summary in Myanmar
- “2017 World Business Environment Report” The World Bank has conducted a survey and analysis of 190 countries and regions. Myanmar ranked No. 170. Among them, to start business convenience, Myanmar ranked No. 146 in the world and the construction permit was ranked No. 66. Electricity Rank No. 149, tax ranking No. 119, protection of minority investors ranked No. 179. International investors say the World Bank’s business environment report is an important index for investors to decide whether to increase investment.
Real Estate Development:
- Yangon news, since the introduction of Bo Ba Htoo housing phase II project, the application for purchase of home buyers has reached more than 5,000 people, creating a new record. But the housing is only 800 units, therefore, the relevant departments decided to use the way of lottery selling. Two projects a total of 27 numbers of 8-storey residential building, each floor has 4 rooms, a total of 864 rooms. But the overall price is between 260 lakhs to 370 lakhs kyats. Can be paid in installments or loans. However, customers who have purchased the Bo Ba Htoo and Bo Min Yaung project Phase I housing, cannot buy a house from the second phase of Bo Ba Htoo housing.
- Deputy Director of the housing division under the Urban and Housing Development Department,U Nway Hmu recently said that according to the census and the relevant calculations, the total Burmese housing demand will reach 4.8 million units in 2040. According to 1983 census data, the total Burmese population of 35.29 million. In 2014 reached 51.48 million people. According to such a population growth trend, by 2040, the national population is expected to reach 70.56 million. Taking Yangon as an example, in 1960, Yangon province population from 1.1 million rose to 2 million in 1970. In 2013, the population of Yangon rose to 5.11 million, and now, the population of Yangon has reached more than 700 million (city Population of 5.06 million, the rural population of 2.2 million).
- Learned from the Pathein Industrial Zone that the 2,700-acre industrial park project in Pathein, Ayeyarwaddy province, will be started to build in 2018. The industrial park will lease the land to foreign enterprises with a 50-year leasing system. Industrial Parks will create a large number of employment opportunities for local people and help promote local economic and social development.
- Adviser of The Government’s Peace Commission, U Hla Maung said that the third 21st century Pinlon Peace Conference in Myanmar will be held in November or December of this year.
- The IRS (Mandalay) news, in September will introduce Mandalay real estate new policy. At present, the new policy has been submitted to the Provincial Government. Before the introduction of new policy, the real estate transactions are in accordance with the policy of last year to pay taxes.
- It is reported that Yangon Regional Government, Yangon City Development Committee and JICA jointly formulated the annual report on strategic development mentioned the construction plan of three industrial zones. The three industrial districts are located in Twante, Hlegu and East Dagon Township, which will provide more than 70,000 jobs.
- “Myanmar Investment Law” was published on 18thOctober 2016. In order to facilitate investors to submit letter of intent and application in line with “Myanmar Investment Law” and ” Investment Law Implementation Rules”, The Directorate of Investment and Company Administration will meet with the investors who are preparing to submit the Letter of Intent and Application in the first week of September 2017 and make a corresponding explanation, as follows:
a. The first week of each month (Tuesday) 9: 00-12: 00, investment advice on agriculture, animal husbandry, food and basic wood processing.
b. The second week of each month (Tuesday) 9: 00-12: 00, investment advice on the garment processing (CMP) and industrial areas (excluding diet and wood processing).
c. The third week of each month (Tuesday) 9: 00-12: 00, investment advice on the real estate, industrial zones, transportation and communications, hotel services, construction and other areas.
d. The fourth week of each month (Tuesday) 9: 00-12: 00, investment advice on the power, energy and other services, mining and other areas.
If the investors or the person in charge of the company want to participate in the consultation meeting, need to prepare the appropriate materials in advance (such as company directors name, company name and investment industry, etc.), and make an appointment with the Directorate of Investment and Company Administration. Directorate of Investment and Company Administration address: No.1 Kanbae Road Yankin Township, Yangon (near Kabar Aye Pagoda road); Tel: 01-658103, Fax: 01-658143; E-mail: dica.ip.mm@gmail. com.
- Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) news, starting in September, whether or not there is collateral, the relevant departments will be given to the domestic small and medium enterprises up to 100 million kyats of loans.
- According to the Myanmar Retail Association news, most retail stores in Myanmar in order to avoid finding subsidies, plans to use the credit card system cash register.
2. Latest News Comments
- Although the business environment ranking level cannot directly determine the benefits of investors, but it is one of the criteria for investors to assess the value of investment. Not just some “low cost” investment is a good business environment, as like labor costs, although the wages of Myanmar workers are only 1/3 of the wages of neighboring countries, but only 1/5 of the working efficiency of neighboring countries, its value is relatively low.
- The recent low-cost housing relative to the commercial real estate market is more active, but the nature of the reasons for affecting the entire real estate market is not a big impact. In order to promote the turnover of the real estate market, the government has introduced policies to stimulate the market, but the effect is not obvious. Only the economic upside, customer income increase, the steady and orderly development of the industry, financial support and customer confidence, etc are the important factors to promote market transactions.
B. Primary Market Announce
1. Latest land supply news
There is no state-owned land at auction in August.
2. Project Approval
No news on project approval.
C. Secondary Market Announce
- Project transaction messages
The data deadline is 30 August 2017, does not include low-cost project transaction data.
- Market comments
- Month trading volume rose 16.21% compared with July. As the domestic real estate market is cold, a number of projects have focused on Myanmar people developing abroad. This month a small number of projects held in Singapore exhibition, the volume increased from last month, but it cannot bring the entire real estate market turnover a substantial increase.
- The end of the rainy season is getting closer and the long silence of the real estate market is now “ready”. Many projects have started full preparation work in the rainy season from marketing, promotion, engineering and finance aspect, etc. Especially in the field of marketing, the companies have strengthened their cooperation with professional marketing companies in order to play a fast, professional and efficient “prepared battle” in the new dry season.