Construction & Real Estate
From The Report: Myanmar 2017
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The construction industry is set to become a major growth driver of Myanmar’s economy, as investors look to capitalise on economic liberalisation and a major public infrastructure programme. Residential real estate, particularly affordable housing, will remain the chief engine of growth over the medium term, though a large infrastructure deficit and rising congestion in Yangon should see public works comprise a growing portion of activity. Although the outlook for the office and residential segments remains subdued as a result of rising new supply, the real estate sector is expected to maintain steady momentum in the coming years, on the back of further economic liberalisation and new opportunities in the retail, non-serviced apartment and affordable housing segments.

This chapter contains a viewpoint from U Win Khaing, Minister of Construction; and interviews with Wong Heang Fine, Group CEO, Surbana Jurong; and Omar Shahzad, Group CEO, Meinhardt Group.

Articles from this Chapter

Overview

Solid foundations: Demand for public infrastructure and affordable housing drives strong sector forecasts
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The construction industry is set to become a major growth driver of Myanmar’s economy, as investors flock to capitalise on economic liberalisation and a major public infrastructure programme. The sector has expanded rapidly since 2012, although growth moderated in 2016 as a result of election uncertainty and regulatory reforms. Residential real estate, particularly the affordable housing segment, will remain the chief engine of growth over the medium term, though a large infrastructure deficit…

Viewpoint

Laying the groundwork: U Win Khaing, Minister of Construction, on industry standards and key drivers of demand
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Viewpoint:U Win Khaing The construction sector is going through a reform process under the new government, with particular emphasis on quality control and the rules, regulations, codes and standards that govern the sector. The institutional framework required to drive this new approach puts the Ministry of Construction in the driver’s seat, and there are a number of institutions, both governmental bodies and private organisations, assisting with the main objectives. To strengthen industry…

Overview

Transition period: Constraints and excess supply are slowing growth, but long-term forecasts remain positive
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After years of rapid growth following the start of the transition to civilian government in 2011, Myanmar’s real estate sector slowed in 2015 and 2016 as a supply surge of new office space weighed on rents and occupancy. Condominiums and high-end residential property also saw growth slow, with some stakeholders arguing rents have been overinflated by a lack of supply and are set for a correction. The industry is also grappling with new regulatory, legal and financial challenges. Although Parliament…

Interview

Shared history: Wong Heang Fine, Group CEO, Surbana Jurong, on strong partnerships and fruitful collaborations
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Interview:Wong Heang Fine To what extent will the development of smart cities have an impact on the economic progress of the ASEAN region, in your opinion? WONG HEANG FINE: When you talk about the development of smart cities, you need to ask how you define smart. This depends on the development of the cities. Everyone has a different definition. As cities develop and become more populated due to urbanisation, there will be a lot of economic development in the streets. If you follow the progress…

Analysis

High hopes: Though fraught with delays, a law on foreign ownership of high-rise condominiums could catalyse foreign investment
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Since Parliament approved a long-awaited Condominium Law in January 2016, real estate stakeholders have been hoping to see sales surge, with foreigners now permitted to own property for the first time. Implementing the law is proving problematic, however: unclear regulations regarding criteria for condominiums have left investors uncertain, land classification and allocation remain major challenges, and above all, the law has still not received the presidential approval required for official promulgation. New…

Interview

Support structures: Omar Shahzad, Group CEO, Meinhardt Group, on how to attract investors to the country
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Interview:Omar Shahzad What measures can be taken to encourage foreign investment in Myanmar’s infrastructure? OMAR SHAHZAD: All over Asia there is a huge requirement for infrastructure spending. It is said that $8trn needs to be spent over the next 20 years on infrastructure projects in Asia. There is a huge investment gap in Myanmar, where infrastructure spend was only around $2bn in 2015, which is less than the 5% of GDP target rate most countries budget for spending on infrastructure.…