Tuesday, December 20, 2011

Land prices in far Rangoon soaring

Tuesday, 20 December 2011 21:29 Nyi Thit

Rangoon (Mizzima) – Land prices on the outskirts of Rangoon and in some municipal areas have increased many times over, according to real estate agents.

Rumors that Rangoon will be extended account for the price rise in Dagon Myothit (South, North, East) affecting an area inside the municipality, and also rises in areas around Thanlyin, Kyauktan and Dala townships.

While land prices are soaring on the outskirts of Rangoon, families without homes set up makeshift shelters in Dagon Myothit (South) on Monday, December 20, 2011, after being forced out of South Okkalapa Township in Rangoon. Photo: Mizzima

A real estate agent said, “Earlier the highest price for a 40-foot x 60-foot plot in East Dagon Myothit was around million kyat (about US$ 1,265), but now some people have offered five or six million kyat to buy the plots. Some of the land is still in bad condition.”

Another real estate agent said: “The former prices of land located in good areas in Dala ranged from two million kyat to three million kyat; now the prices have shot up and are going from nine to ten million kyat. Some people have bought land for the future. Although they will not live there immediately, they think the prices will go up in the future.”

A factor driving some of the price increases is talk of a new economic zone. On November 28, Myanmar Investment Commission chairman Soe Thein said in a press conference in Naypyitaw that Japan, South Korea and China have proposed that the government set up the Thilawa Special Economic Zone.

The 5,000-acre zone would be located between Thanlyin and Kyauktan, east of Dala. The plan was first put forward 10 years ago.

Similarly, the price of land in Aungchantha Ward located near Kyaik Khauk Pagoda in Thanlyin Township has increased. The price of one plot near central Thanlyin increased from 50 to 65 million kyat, an agent said.

In line with increasing demand, many real estate agencies have set up in the hottest areas. However, some real estate experts warn that the land boom in Rangoon has reached a peak and foreign investment will not enter Burma to do business in the very near future.

Despite increasing prices on Rangoon’s outskirts, the real estate market in downtown Rangoon is stable, agents said.

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