While Myanmar’s real estate market hasn’t taken off as expected during the past two years, it’s not time to throw in the towel just yet. At least that is what one local real estate tycoon is saying. In a recent interview with the Myanmar Times, SPA Myanmar founder Serge Pun believes the country’s economy will further develop during the next four years with real estate demand increasing.
“I don’t think that the slow growth of the real estate business is a bad situation, because over the past 24 months, the market was slow but the price was stable,” Serge said. “But five years ago, [for] the real estate market, especially in Yangon, the prices of lands and apartments or condos were surging extremely rapidly [to the extent] that we can call [the situation] a critical condition. So, now, the government has adjusted the market and this situation is no longer as worrying.”
The real estate tycoon adds, “I believe that the market will be better and stronger. There would be real demand emerging from the market, which was not the same as the demand derived from property speculation in the past.”
A wait and see approach
Experts point to a myriad of reasons that caused weaker economic growth in the past year. Investors decided to take a cautious approach to the market waiting to see what changes brought about by the new government. After the election, the government began reviewing legislation put in place by previous administrations. This saw international businesses pause any expansion plans until more concrete details emerged about how the government was set to procede.
U Myo Myint, chair and CEO of MKT Construction, explained to the Myanmar Times that the arrival of the new government forced investors to approach the market with a wait and see perspective until the situation became clearer.