Colliers International Myanmar has revealed in their latest research that the Mandalay Region continues to pose a strong potential for growth in the approaching years.

Coupled with the fact that real estate agents have reported a significant drop in the region's less populated area, now could be the time for a possible change in attitude towards investing in the country's second largest city.

Colliers have reported that there are upcoming plans for a new resort city and a national park that are in its early stages, which would be located 21 miles away from the Mandalay-Lashio highway.

If the project goes ahead, the New Mandalay Resort City project will involve the development of a new 'Green' and IT-Development based resort city on 10,000 acres of land to be built over three phases.

Colliers International Myanmar have also confirmed in a statement that, "There have been five FDI projects worth over 13 million dollars approved which connotes future expansion of the urban areas within the region."

Their statement continues explaining that, "As the impending developments progress to later phases, more developers and FDI will follow suit with the land values in the adjacent areas rising. Therefore, the current correction in property prices may deem attractive for investors who wish to invest or develop later."

It has been reported that property agents have solidified their attention on properties priced below K100 million due to buyer interest being turned away from high-end deals. This is a result from the Tax law introduced in 2016 that sees a 30 per cent tax on properties over K100 million.

In addition, properties priced above K30 million and below K100 million also sees a tax of 20 per cent, further leading real estate agents to focus their attention on the properties on the outskirts of the city.

U Wanna Soe from the Phoe Lamin Real Estate Agency told The Myanmar Times that, “All types of transactions have dropped but there are at least a few deals in residential areas. No sharp changes in prices have taken place in residential areas, but prices for non-residential areas have now fallen by 50 percent compared with 2011. The market used to be very active in non-residential areas, especially in areas of Pyigyitagun township and some parts east of Myothit.” 

Real estate agent U Pyu from Pyi Gyi Tagon township told The Myanmar Times, “Although sales are quiet, this is the best time to buy property. Sellers cannot ask too much for their properties in this situation.”

There has been no indication that the tax rate will be altered, which although leads to buyers paying an increased tax, has the market set to continually trade at a lower than initially expected rate.

Source: Colliers International Myanmar, The Myanmar Times

This article was previously published on the Mingalar Real Estate Conversation

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