Tuesday, December 25, 2012

Big bucks for little condos in Rangoon

Tuesday, 25 December 2012 11:53 Khin Myo Thwe

Finding a studio apartment or condominium in Rangoon is no easy task these days as demand outstrips supply and causes rent prices to soar, according to real estate agents in the former capital.

“Foreign entrepreneurs and businessmen looking at investing in Burma mostly prefer to rent condominiums or modern apartments that have elevators,” the deputy chairperson of one of Rangoon’s real estate associations told Mizzima.

Downtown Rangoon with Sule Pagoda in the foreground (bottom, right) and Shwedagon Pagoda in the far distance (back, left). Many condominiums and hotels are located in between. (PHOTO: Flickr)

So, while the real estate market in Rangoon is relatively stable, the demand for renting condominiums has increased markedly, he said.

“After the Thadingyut Festival in late October, most of the apartment leases expired, and both tenants and landlords are looking at renewed leases,” said Than Oo from Mandai Real Estate Agency. “The availability of condominiums is now limited so the owners are putting up their prices.”

Until this year, the rental fee for an average apartment in the Pale Condominium on Kaba Aye Road, Bahan Township, was between 500,000 to 600,000 kyat (US $588 - $700) per month. Today, clients can find nothing less than 800,000 kyat ($950) per month.

One of the managers at a real estate agency in Mingalar Taung Nyunt Township in Rangoon, said that the rental fees for condominiums in Bahan Township currently range from 800,000 kyat to 1,250,000 kyat per month, while rent for an average apartment-cum-shop in South Okkalapa Township was from 650,000 kyat to 700,000 kyat per month.

He said anyone looking at renting a small flat in a condominium on a main road in Thingangyun Township, east of the city center, was looking at 1 million to 1.2 million kyat ($1,175 - $1,410) per month.

Khin Hla, a freelance real estate broker, compared the prices to a warehouse on Insein Road, Hlaing Township, which he said could be leased for 600,000 kyat to 1,000,000 kyat per month.
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