Myanmar eyes property price controls
Myanmar will take steps to lower skyrocketing prices of real estate in the country by forming price stabilisation bodies, a minister said during meeting with Myanmar citizens on September 29 in New York, the United States.
“In our country, prices of industrial and housing estates are very high. In Bangkok, they have price control groups, which fix commodity prices. So we will also form price control groups,” Industry Minister U Soe Thein told the meeting.
“They will be formed with those from the private sector as well as government officials,” he added in his response to a question made by one of the citizens.
The formation of price control groups will start in Yangon and Mandalay. They will fix prices
and will mention the correct ones in newspapers to ensure transparency.
Foreigners could exchange their money for Myanmar kyats, the minister added.
Moreover, the government will also adopt a new taxing system to ensure that properties can be bought or sold at a deserving price.
Economics professor Maw Than agreed, urging the government to start collecting tax on properties.
“For example, a person who already owns a house should pay increased tax when he buys another. In addition, the amount of the property tax will depend on the value of property. And this will prevent property speculators. Any policy that protects them should not be adopted,” he said.
Other economic experts also pointed out those skyrocketing prices of real estate in Myanmar could deter new foreign investment.
“Property prices started going up sharply last year not only in Yangon but in economically thriving coastal regions. Giving very high prices for land with the intent to extend hotel services can lead to destabilising real estate prices,” a real estate agent said.
“This makes the grassroots unable to own a flat or house. Likewise, foreign investors will find it difficult to do business in the country due to such high property prices. What policy the government will adopt to control the prices is very important,” he added.
Another agent said it would be better to look for different measure.
“It is good to form price control groups to stabilise estate prices but a very strict law cannot control them in the long-run. So, fulfilling the requirements of the market in line with the market economy is the most appropriate way,” the agent said.
