Ms Cheah Swee Gim is a Director and Foreign Consulting Attorney at Kelvin Chia Yangon and a senior partner of Kelvin Chia Partnership.

With a portfolio of work spanning over 25 years, that includes mergers and acquisitions, joint ventures, corporate reorganisations and restructurings, private equity funds, banking and financial transactions, Cheah Swee Gim has extensive experience in a wide range of investment advisory and corporate and commercial work, with an in-depth understanding of local laws and regulations. 

WILLIAMS MEDIA spoke with Cheah Swee Gim about the laws that govern Myanmar's real estate market and what buyers and sellers need to know before acting within this complex market. 

What real estate laws are currently in place and what role do they play in the market?

Myanmar does not have a singular or overarching legislative framework governing real estate. Real estate is thus classified under various laws according to, among others, nature, permitted uses, and manner of acquisition. This makes investing in Myanmar real estate a somewhat tricky proposition (especially for foreign investors who are generally prohibited from owning real property).

Fortunately, the government’s efforts to liberalize the Myanmar economy by passing substantive legislation (which also affects the real estate sector) such as the Special Economic Zones Law (2014), Myanmar Investment Law (2016), Condominium Law (2016), and Myanmar Companies Law (2017) addressed some investor concerns. That being said, much work needs to be done in terms of implementing these laws, for investment in the Myanmar real estate sector to really catch on.

How do these laws impact the buying and selling process for locals and foreigners in Myanmar?

These laws substantially affect real estate transactions in Myanmar since they determine, among others, the rights that may be granted/obtained in relation to a particular piece of real estate, how long these rights would subsist, who may buy or lease (as applicable) such real  state, and for what purpose could the real estate be used. For this reason, the interpretation and implementation of these laws may make or break a transaction in certain instances (depending for instance on whether the intended transferee or use of the relevant real estate is permissible under applicable laws).

What are some key laws that people need to be aware of before buying or selling?

Foreign investors should particularly note the Transfer of Immovable Property Restriction Act (1987), which prohibits the transfer of immovable property to a foreigner or foreign-owned company. It also limits the term of leases of immovable property to foreigners or foreign companies to only one year subject to exceptions granted under the Special Economic Zones Law (2014) and Myanmar Investment Law (2016). 

Notably, as an exception to the aforesaid, the recently passed Condominium Law (2016) allows foreigners to purchase up to 40% of the units in a condominium as defined under the said law.

What legal advice would you give to someone looking to buy/sell/invest in Myanmar's property market?

It has only been seven years since Myanmar re-opened its doors to the world in 2011. While the country has made great strides in modernizing its economy, as with all developing economies, challenges remain. Investors should thus carefully conduct market studies and proper due diligence before making substantial investments in the property market, especially to determine if there are restrictions imposed on the relevant property and if such property is suitable for the intended purposes.

Click here to view Chambers and Partners: Myanmar Real Estate 2018 guide.

For more information about Myanmar's real estate laws, email Cheah Swee Gim of Kelvin Chia Yangon via the contact details listed below. 

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Buying property in Myanmar 

Introduction to Myanmar real estate

Myanmar real estate glossary of terms