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Housing loans and repayments of those loans in monthly instalments have begun to flourish in Myanmar’s real estate market since the beginning of this year, as more construction companies and real estate developers collaborate with banks to make home ownership more accessible.
These days, banks are offering home loans at a specified interest rate and tenures of 15 years for ordinary apartments and 25 years for condominiums. In the past, payments were mostly made in cash.
The government has been building low-cost or affordable housing, but the homes can sometimes still be beyond the reach of those who need them the most, said U Nay Min Thu, managing director of property website iMyanmarHouse.com.
“The people who actually want to purchase low-cost housing are not able to do so and instead [the property] falls into the hands of speculators. And incidents where these speculators then rent out the units or resell them for a profit are seen in the market,” said U Nay Min Thu.
With loans now available, more are able to buy homes from not only private developers but also the government.
Foreigners absent
Despite those positive developments and the recently enacted Condominium Law, foreigners remain largely absent from the local residential market.
Under the new law, which was passed in January 2016 and bylaws enacted in December 2017, foreign buyers are allowed to buy up to 40pc of a condominium development. The law also requires a condominium management committee to be formed to handle all registrations and requirements associated with foreign property purchases
So far, no condo units have officially been sold to foreigners because a condominium management committee has still not been formed, according to iMyanmarhouse.com.
Ref: Myanmar Times News
