The introduction of a 30-year installment system for housing payments in Yangon could change a residential market that has traditionally been out of reach for the majority, says Colliers International.

Eleven Media Group reports that Yangon's Urban and Housing Department has begun working on a 30-year installment system with the Construction, Housing and Infrastructure Development Bank (CHID), after taking out a housing official development assistance loan with help from Japan.

According to Department Director-General Min Htein, the system will allow low-income families to buy apartments and houses with an 8.5% interest rate.

Colliers International said the flexible repayment terms would gain "rapid traction" within the city.

"Under long-term repayment plans with official development assistance from Japan, several affordable housings have become more available in Yangon over the years," it said.

"With its loans available mainly in commercial, construction, and housing sectors, CHIDB has lent over MMK 227 billion as of 2018, with annual interest rates ranging from 10.5-13% and loan periods of 4-15 years. 

"As Colliers views it, the eventual proliferation of mortgage and deposit provisions is seen to change the residential market, which traditionally has been out of reach for the majority, especially low and middle-income earners."

Sources: Eleven Media Group, Colliers International

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