Amendments to Myanmar’s Condominium Laws have inspired positive change in Myanmar’s property market for 2018 according to local agents. 

Myanmar New Condominium Laws - At a Glance:

• February 2016 New Condominium Laws enacted
• December 2017 New Condominium Laws released
• New Condominium Laws allow foreigners to develop property (subject to approval) and allow foreigners to buy up to 40% of completed units on any floor of a condo block. 
• Agents expect these laws to have a positive effect on the condo market supply over the coming 3 years

Despite being enacted in February 2016, the new Condominium Law's updated legislation was only released in December 2017. The new rules stipulate that foreigners are now able to develop property, subject to approval from the Myanmar Investment Commission. New condominium projects carry specific requirements where at least six floors must be built on 0.5 acres of land area.

Foreigners will also be able to buy up to 40% of completed units on any floor of a condominium block while the previous legislation only allowed foreigners to own 40% of the floor area above the sixth floor. Due to the changes, U Htoo Myat Naing, director of Estate Myanmar Real Estate Agency expects more foreigners to take advantage of the emerging opportunities in the property sector. And condominium sales have also risen since the end of last year.

Even so, analysts warn that it could take time for the higher demand to have any significant impact on property prices, particularly as the availability of high-end serviced apartments has increased in the past year. According to a November report from research firm Colliers International, completion of Lotte Serviced Apartments last September, led to a 19% increase in existing supply, a record high since 2013. In Yangon, 70% of the 1900 apartment units are considered upscale. Shangri-La Serviced Residences is considered a premium property, while Lotte Serviced Apartments feature the highest in amenities and facilities across all serviced apartments.

By 2020, Colliers International expects serviced apartments in Yangon Inner City Zone, particularly Bahan and Yankin townships, to represent more than half of the available supply. Colliers also suggests that the rise in supply may lead to considerable surplus in 2019 and 2020.

Lower-tier projects such as studios and two and three-bedroom units will likely see more buying activity over the shorter term. Due to their affordability, analysts suggest that demand for studios one-bedroom units will also increase.

Sources: Maverick Management Company; Myanmar Times, Estate Myanmar Real Estate Agency; Colliers International

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