Set to take effect within the 2018-19 financial year, the new real estate policy changes being introduced by the Yangon Regional Government will address a range of industry aspects, including that setting of benchmark prices for properties.

At a glance:

• Yangon Regional Government to establish new real estate policy changes, including the setting of benchmark property prices.
• Colliers International Myanmar advises that these changes are vital for the countries real estate sector.
• Richard Emerson of Emerson Real Estate believes the changes will encourage and help facilitate foreign investors to enter Myanmar's property market.
• Despite the range of responses from various industry professionals, Colliers maintains that the changes will advance Myanmar's property market and streamline FDI processes.

As yet, the effect these changes will have on Yangon's real estate market is unclear, and the policy changes have elicited a range of different responses from professionals across the industry.

Colliers International Myanmar, believe that it is high time for the country to implement policies and enact laws in areas where they do not exist. Particularly as the real estate services bill and drafting of the benchmark pricing policy will be crucial and vital for the sector.

Chairman of the PropertyGuru Myanmar Property Awards judging panel, Richard Emerson, managing director of Emerson Real Estate, describes Myanmar's real estate sector to be "still in its infancy" and cautions that because of this, the concept of pricing standards in Myanmar are misunderstood.

From a government perspective, officials assert that having standard property prices will easer stamp duty payments and other incurred levies.

The policy changes have been introduced in time with the China Belt and Road Initiative, which has initiated strong incentive for Chinese foreign direct investment in Myanmar's real estate market.

Many developers are also eager for the government's efforts to bring transparency to the sector. The 2016 Condominium Laws are also expected to encourage foreign property seekers in Myanmar once clearer bylaws are introduced later in the year.

Emerson also maintains a belief that the new changes to Myanmar's legal and regulatory environment will encourage and facilitate the required protections for foreigners to invest as they otherwise would in more developed markets. 

Without these regulations, Colliers asserts that there is no comfort when commitments are made between property buyers and sellers. And more importantly, with the passage of the bill and the implementation of the pricing rules, Colliers expects the further streamlining of the FDI to flow into the country. 

Colliers contends that the government plays a material role in ensuring the law is well implemented and that these legislative efforts will reinforce Myanmar's promising property market potential. 

Source: Colliers International Myanmar, Property Report

This article was previously published on Mingalar Real Estate Conversation

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