As Myanmar’s property sector remains in the doldrums, at least pending next month’s election, some would-be buyers are beginning to consider whether better opportunities lie overseas.
Few Myanmar buyers have yet taken the plunge and purchased foreign real estate, said agents.
“Some of the country’s richest businesspeople are interested in investing in foreign property, especially in Singapore and Thailand,” said U Yan Aung, managing director of Asia Construction.
“But very few have so far, and it could be that those who have done so are already living overseas.”
Still, buyers who have made a killing in the property market over the past few years have had their appetite whetted, and the current slowdown at home could encourage them to cast their eyes further afield, he said.
“While only a few Myanmar citizens have bought property overseas, many more will do so in future, as they begin to understand the opportunities better. Foreign developers in Myanmar have expediated this process, making it easier for local investors to compare quality and prices.”
Real estate consultant U Aung Min said opportunities for real estate investment abroad are only available to the very rich – some of whom are likely to have already invested in overseas property.
Tony Picon of Colliers International Myanmar said the market remains opaque, as most Myanmar buyers do not want to display the fact that they are buying overseas.
Nevertheless, foreign real estate developers are beginning to trickle into the country, to market overseas projects.
Earlier this month, a scheme allowing wealthy foreigners to invest in the US in return for permanent residency reached Yangon.
New York-based developer Related Companies partnered with local firm Golden Development Group to market a mega-project in New York, as part of the US government’s EB-5 Immigrant Investor Program, which gives people the chance to obtain a Green Card in return for investing US$500,000 into a government-approved project.
Soon afterwards, UK-based property agent Trivelles International held a showcase in Yangon to assess investment interest for several projects, including a student apartment block in Nottingham, called Regency Suites.
The company claims to have 25 years experience as a leading real estate developer in the UK. Nottingham University did not respond to requests for comment on whether it was associated with Trivelles and the company’s relationship manager Sahar Nourouzi said he was unable to provide an introduction.
Vincent Tan, Trivelles’ business development manager, said he believed it was a good time for Myanmar citizens to invest in international real estate, and that the initial response to the project has been positive – with 15 people expressing interest on the launch day and some reserving units.
Local agents have warned of the risks associated with overseas real estate investment, with U Yan Aung advising Myanmar residents to “check, double check and counter check before investing”.
A lack of Myanmar sales offices or points of contact for overseas buyers may keep sales low for the time being, said U Aung Min, managing director of Myat Min Construction.
Some Myanmar construction companies have opened offices in Singapore or Thailand to develop online payment systems and access better technology, he said.
However, he believes that as long as foreigners cannot buy property in Myanmar, there is little reason to open a sales office in Thailand or Singapore.
A new Condominium Law, which would allow foreigners limited access to the local property market, is still only in the draft stage, and has been repeatedly delayed.
“If parliament adopts [the new law], I could open offices in Thailand and Singapore to sell Myanmar property, just as foreigners can buy some types of property in Thailand,” he said.
Quoted from mmtimes.
