SIGNIFICANTLY surging rents pose a financial burden on tenants in the Yangon real estate market, according to realtors.
“Real estate brokers are facing difficulties in finding apartments and houses amidst the rising prices. Property owners demand higher prices, putting a heavy burden on tenants,” Ko Aung Than, real estate agent from Sangyoung Township, told the GNLM.
Yangon’s real estate market witnessed growth before the full moon of Waso month last year. Furthermore, internal migration to Yangon makes the property market highly competitive.
Moreover, Myanmar people tend to avoid relocating during the Waso month according to some traditional beliefs. Consequently, they prepared to move before the month of Waso, prompting the market to boom.
“The rent for an apartment (13x55 feet) increased from K400,000 to K650,000 this year. Landlords demand six-month deposits. Some even ask for six-month or one-year payment for power and water supply,” Ma Wah Wah, a realtor from South Okkalapa Township, told the GNLM.
Additionally, landlords also enforce occupancy limits and reject a group of young renters.
“Some unscrupulous realtors and landlords also make a profit from some migrants, exploiting the lack of market knowledge. Some migrants are not accustomed to the market in the Yangon Region and are pushed to fulfil landlords’ demands. Law enforcement on levying tax on rental income might help reduce the housing prices,” U Win Swe, a market observer, expressed his opinion.
Apartment rental prices in Sangyoung, Kamayut, Hline, Thakayta, Thingangyun, South Okkalapa, North Okkalapa and Shwepaukkan townships rose to K450,000-K600,000. The rents range between K300,000 and K500,000 in Dagon Myothit (North), Dagon Myothit (South) and Dagon Myothit (Seikkan) townships.
In addition to the rental market, the property sales market also surged.
“An Apartment (13x55 feet) cost K150 million to K200 million last year. The prices have been hiked to K160 million to K300 million, depending on the floors, this year. The land prices (30 by 55 feet) with good condition of house cost up to ten digits or more in Dagon Myothit (North) Township, realtor Wah Wah said. With the housing prices skyrocketing, some landlords engage in land-for-property exchanges. “We sell our land for the property exchange but have to give up half of our land to them. Some developers do not even offer a good deal for the exchange,” said U Moe, a landlord who has contracted with a developer. — TWA/KK
