Property market in Myanmar expected to stay flat till 2020
Myanmar’s property market has been lacklustre since 2015 and this situation is expected to continue until next year, said U Myo Myint, general secretary of the Myanmar Construction Entrepreneur Association during an industry discussion in Yangon last week.
“This is the current situation. However, what is good is that there will be no worsening in the conditions or a downturn. We cannot say precisely whether the market will climb in 2020 as a lot depends on the policies of the government,” he said.
The cost of construction is now high due to the strength of the US dollar, so property prices are not expected to fall from their current levels as the dollar price goes up, U Myo Myint added.
Property transactions have decline by 50 percent from their peak five years ago due to low demand. As foreigners are still unable to own land in Myanmar, there has been no pick up in the industry from foreign buying, said Daw Yin Yin Myat, central committee member of the Myanmar Urban and Infrastructure Development Association.
The need for low-cost and affordable housing, if addressed, could serve as a stimulus for the overall market, Daw Yin Yin Myat added. “The drop in demand has dragged the market down with it. This can be attributed to the fact that many people who need housing simply can’t afford it,” she said.
On the other hand, the market did receive a small boost over the last year due to the introduction of long-term home loans by private and government banks. While still out of reach for many, the loans are a great help to the middle class although not in sufficient numbers to move the market.