Actions are being taken to try and meet Myanmar’s building quotas.
The rate of Myanmar’s house building efforts is not matching that intended by the government. The Ministry of Construction had big plans to build one million units by 2030. However, the yearly target needed to be met in order to reach one million is not being met due to a slow year in 2016.
This is according to the Myanmar Construction Entrepreneur Association (MCEA). Chairman, U Thar Htay, commented, “The Ministry of Construction announced that they would implement one million units by 2030… they didn’t reach the target in the past five years. The ministry specifically used the budget from the Union Government for that [project], but they didn’t reach the target”.
As urbanisation in the country increases, Yangon’s population is growing at a rate of knots. People are drawn to the city for work, so more accommodation is required to house the country’s fastest growing population. Renters in the city are required to pay six or 12 months rent in advance. This is a strain to tenants and will likely be a catalyst for the shift to more residents wanting to become homeowners.
Hence there have been calls for the industry to be regulated. The impending Real Estate Service Law should address unregulated issues in the industry. The hope is that the rental economy will also be regulated.
However, in a bid to keep with government targets, the MCEA will issue housing development contracts to build the much needed affordable housing. Although plans are not yet in place for this, it is anticipated for building to commence this year. MCEA will achieve this through their joint venture with Surbana Jurong. The Singaporean firm have a strong reputation on their home turf for developing affordable housing, and their expertise is expected to help Myanmar’s deficit.