Construction & Real Estate
From The Report: Myanmar 2018
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The construction sector in Myanmar has experienced some turbulence in recent years. Changes to the regulatory framework and budget deficits have had an impact on the construction of houses, while plans to upgrade the country’s infrastructure have faced economic and political constraints. Nonetheless, the government is determined to move forward with new regulations and secure funding for a series of major infrastructure projects, and players in the sector are generally optimistic about developments ahead in 2018. With the residential and office markets cooling, but the industrial and retail segments buoyant and exhibiting significant long-term growth potential, the period ahead poses both challenges and opportunities for Myanmar’s real estate sector. Establishing a clear regulatory framework is set to play a significant role in the market’s development. This chapter contains interviews with Roongrote Rangsiyopash, CEO and President, SCG; U Kyaw Kyaw Win, Chairman, New Star Light Group; and U Khin Maung Aye, Chairman, Lat War.

Articles from this Chapter

Overview

Build up: With sustained economic development, legislative changes and major infrastructure projects, sector growth appears secure
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The construction sector in Myanmar has experienced some turbulence in recent years. Changes to the regulatory framework and budget deficits have had an impact on the construction of houses, while plans to upgrade the country’s infrastructure have faced economic and political constraints. Nonetheless, the government is determined to move forward with new regulations and secure funding for a series of major infrastructure projects. Therefore, players in the sector are generally optimistic about developments…

Analysis

Grand designs: A range of plans are being explored to address Yangon’s growing infrastructure requirements
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With increasing demand for housing, public transport and utilities infrastructure, the Yangon authorities are making determined efforts to develop the city. The Yangon City Master Plan, an updated version of which was drawn up at the end of 2016, presents detailed proposals for the upgrade and expansion of the city’s capacity. These plans cover the period up to 2040 and envisage not only a major horizontal extension of the city, but also substantial vertical growth through the addition of a range…

Overview

Firm foundations: While market corrections and oversupply have occurred in some segments, growth prospects remain robust
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Emerging only recently as a real estate investment destination, the Myanmar property market has gone through a period of adjustment since 2013. After a lengthy course of isolation, an initial burst of interest in the country from many global companies, governments and non-governmental organisations led to a surge in demand for residential and office accommodation, with supply low and prices consequently high. More recently, the country has witnessed corrections in the market, with a consequent slowdown…

Analysis

From the ground up: Regulatory reforms are set to heighten real estate activity
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Hopes are high that a recent move to clarify regulations governing the sale and development of condominiums in Myanmar will boost their demand. The Condominium Rules, published by the Ministry of Construction (MoC) on December 15, 2017 ease restrictions on foreign ownership, clarify aspects of the law and provide greater safeguards for buyers. They are expected to boost sales activity and drain off some excess supply, particularly in the mid to high end of the residential market. They may also serve…

Interview

Development opportunities: U Kyaw Kyaw Win, Chairman, New Star Light Group, on facilitating growth in infrastructure and its impact on trade
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Interview:U Kyaw Kyaw Win Which infrastructure projects could spur economic growth and support cross-border trade between Myanmar and China in Shan State? U KYAW KYAW WIN: The Shan State plays a central role in Myanmar-China commercial relations, with more than 80% of the trade between both nations taking place there. To handle the growing volume of commercial transactions, Myanmar needs to invest in infrastructure to turn the state into a more functional and efficient logistics platform.…

Overview

Sustainable urbanisation: Ecological and smart cities are growing throughout the world
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In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…

Interview

Pragmatic planning: U Khin Maung Aye, Chairman, Lat War, on industrial, residential, mixed-use and top-tier developments
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Interview:U Khin Maung Aye How do you predict demand for the development of new industrial parks will evolve? U KHIN MAUNG AYE: Contrary to the current state of residential and office markets, the industrial property market offers interesting growth prospects. Over the last few years we have seen growing interest from foreign investors to come set up their manufacturing units and take advantage of the country’s abundant supply of labour. The take-up rate for industrial land is very high,…