Yangon's property market is set to change this month as the Regional Government begins conducting property valuations to set an official benchmark price for properties in Yangon.

Japan Valuers Myanmar explain that the property benchmark system indicates the specific standard land value of properties per square foot, organised by street location in the townships of Yangon. It will also specify standard price values per square foot on condominiums and apartments, arranged by storey level. 

Chairman and Founder of Japan Valuers Myanmar, Hiro Isobe, told WILLIAMS MEDIA, "It is important to keep in mind that benchmark prices may not reflect actual market prices, though it will be helpful for buyers and sellers to make relative comparisons among areas."

Regional Minister for Planning and Finance, U Myint Thaung said, "We will value the properties based on demand and supply in the various townships, wards and streets of the Yangon Region at the beginning of the fiscal year."

By setting an official market price for properties, the hope is that buying and selling property in Yangon will become easier, particularly for buyers and sellers to determine which stamp duties and property taxes need to be paid, it will also regulate extremes in pricing.

According to the minister, the Yangon government is still in the process of refining and amending its methods and procedures to ensure accurate valuations are carried out. He also said, "that each township's tax office is responsible for collecting data and information to help calculate the current market price of its real estate."

Township tax offices will be charged with collecting current price data of real estate in their respective areas which will be discussed with representatives from 11 government departments, several of which include members of the Price Valuation Board for land, buildings, factories and workshops in Yangon:

• Yangon City Development Committee (YCDC)
• Internal Revenue Department (IRD)
• Settlement and Land Records Department ​

The final valuations will then be submitted to the Yangon Regional Government for final approval. 

U Myint Thaung furthered, "We set the prices once in a year. Parliament then approves the appropriate tax rates for the properties."

According to Japan Valuers Myanmar, this process of standardised assessments of land value has been arranged according to the market's condition in order to collect taxes. The property rates, as defined by the Price Valuation Board have been organised by region in an effort to counterbalance economic shocks and downturns.

Prices will be modified and adjusted annually as per the suggestions from each townships IRD officials and real estate agencies. This will ensure that property value reflects the activity of the real estate market, as well as regional and national economies. 

For more information about Myanmar's property market, benchmark pricing and land price valuations, email Hiro Isobe via the contact details listed below.

Sources: Myanmar Times, Japan Valuers Myanmar, Myanmar Business Today

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