YG·SEEK Yangon Real Estate Development(RED) Monthly Report

 一、 Hot News Comments

1. Dynamic News Summary in Myanmar

1.1 Economics

1.1.1 Myanmar Investment Council Approved 24 investment project in 6th Jan 2017. It included 10 foreign investment projects, 11 joint capital investment projects, 3 domestic investment projects. Approving Project contained Hotel, Office Building, Golf Club, and Entertainment Venues etc.

1.1.2 According to the report from <democratic daily news> on 12th Jan 2017: The construction of Bio-Power Generation Project is expected to be completed in May 2017. MAPCO cooperated with Yanmar company used chaff for flaming resource, and provide the power for rice factory in Naypyidaw. The project is completed by 85%.

1.1.3 There are three car factory will be opened in 2017. It included Nissan, Suzuki and Ford.

1.1.4 Yangon province government plan to rent 9000 acres land for foreign investor in Yangon city.

1.1.5 China Bank HongKong Branch and MIGA signed 100 million US dollars project guarantee agreement for Myanmar Networking Company. The project will be laying 4500 km optical fiber network in Myanmar.

1.2Real Estate Development

1.2.1 Korea Land Housing Corporation Signed in 2018 memorandum of understanding with Myanmar Building Construction Authority for City and Industry Development.

1.2.2 Urban development management Authority said 2100 sets of low-cost housing have officially on sale, and sales and cooperation by bank loans. Low-cost housing within five years shall not be entitled to resell by law, if you really need to sell, can only be sold to Urban development management authority. In addition, low cost housing shall not sublet, if found to sublet or resale, will be confiscated the house, and pay 5% fine of housing value.

1.2.3 Domestic tax department data displayed, according to data from 2016-2017 year, in April to November, Yangon province real estate transaction tax gained 47 billion kyats,  increased by 23 billion kyats at the same time last year.

1.3 Political

1.3.1 From January 1, 2017, all the car drivers and passengers must fasten your seat belt, otherwise will be fined thirty thousand kyats, or detained.

1.3.2 On January 16, Rangoon buses restructuring changes, and unified management.

1.3.3 According to Myanmar government news, new regulations on the Myanmar company is approved by the federal government, has been submitted to parliament for discussion. According to the newly revised regulations, foreigners and Burmese joint venture company, if the shareholder account for more than 35%, then the joint venture company is qualitative as Burma, the opposite is a foreign investment company.

1.4 Financial Aspect

1.4.1 Burma’s central bank on January 3, released announcement: the country circulation of commodities and service fee will be settled on Kyats.

1.4.2 CB Bank with Visa issuance of a Visa Card, and introduced two kinds of Credit Card, the Gold Card (Gold Visa Credit Card) and white Gold (Platinum Visa Credit Card).The credit card can be used at home and abroad, in Myanmar currency settlement.

1.4.3 At the end of January or next month, Japan will borrow 93.37 billion yen to Myanmar, because the money is not enough to loans to each farmer, loan applicants need to review analysis proposal, agricultural project technical and economic benefits after lending standards.

1.4.4 Accumulative total turnover in the stock market was 70 billion kyat ($52 million) in 2016.The first private bank (FPB) will become fourth trading company in Myanmar, the company’s shares will begin on 20th January 2017 on sale.

1.4.5 Due to the number of mobile payment platform on the market rising in Myanmar, at present outstanding products are Trusty of e-commerce, AGD pay, wave money, OK $, and the market of Thailand’s cooperation with city mart T2P payments. Some products can be registered by mobile phones, such as a trusty e-commerce products, access to the web site http://www.jlgroupmm.com/ for registration, the system will notify the customer account and password in a short time, only on a mobile phone search trusty ecommerce app download after login.

1.5Tourism

1.5.1  There are 2.9 million traveling people in 2016,  decline 1.7 million less people

compare with 2015.

2. Latest News Comments

2.1 Due to improve infrastructure construction constantly in Myanmar, it will stimulate more and more foreign capital in Myanmar,  the country’s future economic sustained and stable developed, it produced a good mutual benefit the ecosystem.

2.2 The development of the real estate, the government is also constantly promote and strengthen the development of the city, the real estate tax has increased, in addition to the volume increased, otherwise real estate standard continues to improve, at the same time, ensured the weaker domestic residential demand;

2.3 Financial products constantly increasing, the future competition will also continue to increase, although the market has great potential,  the market capacity is smaller, market share will be shrinking, so if you want to enter in Myanmar Market, we must grab the exist market as soon as possible.

2.4 Due to sharply decline in the number of tourists, the tourism brings a certain impact, the main reason is the imperfect tour supporting factors and high cost.

二、Class 1 Market Announce

1.Latest News for Land Supply

NO

2.Project Approving News

The central station project has won approval on January 13, FMI group will sell stock to get the project funding.

三、 Class 2 Market Announce

  1. Project Transaction Messageqq%e5%9b%be%e7%89%8720170226124124
  2. Market commentary

2.1 Due to the policy effected, fewer new entering the market project this month, volume has receded from the previous month,  it will have a new project in the market gradually next two months.

2 .2On the marketing strategy of real estate projects have the exhibition as a important way of promotion and clinch a deal, but as a result of the exhibition promotion is not big enough, the customer quantity is little, the project  advantage is not obviously effect.

2.3 Real estate market has been developed from the original seller’s market to buyers’ market, the real estate market to competition from price to value development, it makes the customer demand for real estate marketing information stronger than before. It is sharply increase of the project in Yangon, the market  stock of increasing, make customers have more optional, for professional market research, analysis, positioning, formulate feasible marketing strategy will be make the project  in an impregnable position.

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