Foreign demand still driving rental fees higher

 

Yi Mar Swe, an agent at Myanma Aungmyay Estate Business, said renting units was becoming more popular than selling them due to the influx of foreign nationals. 

Rents were surging as a result, while sales were slowing. Single rooms are going for Ks 300,000 (US$300)a month, agents said. The monthly rent for condos ranges from Ks 250,000 to Ks 300,000 ($2,500 to $3,000), while the average monthly rent for a house was Ks 4-5 million ($4,000 to 5,000), agents said.

Yi Mar Swe said the market for land, however, had fallen flat and that her agency was receiving only enquiries. 

The most popular residences and condominiums for foreigners are found on Pyay Road, at the 8 mile and 9 mile mark, as well as in Yankin Township. The impact of foreign renters was also having an impact throughout the city, agents said. “Places that that no one even looked at before, like those around Guttalit and Chawtwinkone townships, are now become a centre-point for foreigners. Myanmar house owners are interested in renting to foreigners because they can charge them higher rents,” agents explained.

Currently, renting and leasing is leading the real estate business. An appendix to the Income Tax Law enacted on March 24 requires paying a duty on apartment deals, but it has yet to come into effect and it has had no visible change in the market, agents said.