Tenders to be invited for two housing projects in Yangon

Tenders to be invited for two housing projects in Yangon

Published on Monday, 10 December 2012 16:54

A Housing Development Workshop held on December 6 in Yangon (Photo - EMG)

Tenders will be invited from private companies to construct two housing projects in Dagon Seikkan Township in Yangon, according to announcement of Department of Human Settlement and Housing Development (DHSHD).

The projects will have 10 thousand apartments, and the department will select the capable companies to meet norms.

"Tenders will be invited in December for the two new housing projects, namely Ayeya Wun and Yadana. Local companies or  joint-ventures with foreign companies can submit tenders. The projects will be allowed on the basis of norms and regulations of the Committee for Quality Control of High-rise Building Projects Construction (CQHP)," an official of DHSHD said.

Moreover , Yangon Region government has announced the construction of over 120,000 apartments in the area by cooperating with local or foreign investors.

"Construction of cheap apartments will need lands and fund of  government, or the long-term loans with low interest rate by creating the housing project budget,"  said Yangon Mayor Hla Myint.

The official of DHSHD said these two new housing projects will be categorized into three standards for the families of various income levels.

YCDC has expected to accomplish construction of over 9,500  cheap apartment over 190 Land areas in 2015.

Soe Thein, chairman of the Myanmar Investment Commission, told a press conference earlier this year that the commission would do everything in its capacity to ensure a fall in the rate of land lease as in the auto market.

Reports said the selling and buying of land and buildings would be controlled by means of taxes.

A property agent said the authority concerned raised taxes for prices to fall, but the measure resulted in the stagnation of sales without any positive impacts on the price. He noted there was still a remote chance for the middle class to have a decent house of their own.

Another factor that leads to high prices in the property market is concerned with giant companies buying farmlands at low prices and selling them at obscene profits. This has sent property prices skyrocketing.

The soaring prices have triggered investment obstacles to both local and foreign businesspersons, said Dr. Maung Maung Lay of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

It said the year 2011 saw unusually large price jumps in Yangon as well as in other economic hubs and coastal regions where hotel projects had been concentrated.

According to a broker, the rent has gone up by 10 to 50%, depending on their locations. The reason behind the high rent was, he noted, due to the growing population in Yangon.

The high rents in the suburbs also hit hard on people at grass-roots level. A street vendor said his landlord had put the rent up from 12,000 kyats a month to 20,000 and so he found it difficult to pay the rent because his income was not stable.

As a commercial city, Yangon has now a population of 6 million, which is likely to hit 10 million by 2020.

At this rate of population growth, the commercial city will need nearly 100,000 more apartments to house the additional population in a period of ten years.

Source: http://www.news.myanmaronlinecentre.com/2012/12/11/tenders-to-be-invited-for-two-housing-projects-in-yangon/