Rent increases due to investment boom

Rent increases due to investment boom

Published on Wednesday, 26 June 2013 21:55

Apartments in Bahan Township (Photo-Aung Zaw Tun/EMG)

Rent increased has increased dramatically because of the raplid flowing of investment from abroad, according to real estate agents.

"The rental fee for a house has doubled in some parts of Kabaraye Road, Bahan and Mayangone Townships. People can't no longer rent an apartment with 100,000 kyats (about US$100) per month. As the rental fee is high, the people who don't own a house have to rent," said Kyaw Swar Lin from Shwe U Daung Min Real Estate Agency.

He said the reason for the spike in the rent has to do with the rapid flow of  investment from abroad and the high number of foreign tourists coming to Yangon and other tourist attractions."

"In the past, foreigners book a room in hotel to stay and open up an office. But now the hotels only allow them to stay. That's why the foreigners rent the whole house and use it as an office," he continued.

The rental charges for a house in some parts of Kabaraye Road, Bahan and Mayangone Townships are increased to 5 or 6 million kyats (about US$5,000 or 6,000) recently. The rental fee for an apartment has also went up to 120,000 or 150,000 kyats (about US$120 or 150).

Land plots in Thakayta and Dawpone Townships which are located near downtown have 150,000 or 200,000 or 300,000 kyats (about US$1,500 or 2,000 or 3,000) per square feet. The price has been unstable because the townships can easily access to downtown areas and their locations are good, said Hein Moe Myint Lwin from Estate Myanmar Real Estate Agency.

The price of real estate started to go up rapidly about two years back. The grassroots level people have to pay a big guarantee to rent a house and the rental fee cost them 50,000 kyats or 120,000 kyats (about US$50 or 120). The dormitory charges are also increased for workers who came from rural areas to work in Yangon.

 

Source: http://www.news.myanmaronlinecentre.com/2013/06/27/rent-increases-due-to-investment-boom/