Plans for a new USD1 billion "smart city" in northeastern Yangon reflect the government's intention to decentralise the city, according to Colliers International.

The Myanmar Construction Ministry inked a deal last month with a Thai-based firm Amata Asia to build the Yangon Amata Smart and Eco City (YASEC), with the first phase of the project to be developed in the next five years. 

Set to be spread over 2,000 acres of land near Laydaungkan Village, located between South Dagon and East Dagon townships, the YASEC includes residential, office, and industrial properties.

At a glance: 

• The Myanmar Construction Ministry inked a deal last month with a Thai-based firm Amata Asia to build the USD1 billion Yangon Amata Smart and Eco City (YASEC) in northeastern Yangon.
• The development is set to occupy more than  2,000 acres of land near Laydaungkan Village, located between South Dagon and East Dagon townships.
• Colliers International says YASEC is part of a government strategy to decentralise activity away from Yangon's CBD.

Colliers Senior Research Analyst for Myanmar, Paul Ryan Cuevas, said developing northeastern Yangon "echoed" the government's aim to reduce congestion by decentralising activity away from the CBD.

"Central features of the strategy highlight infrastructure upgrades to connect the northeast periphery area to central Yangon," he said.

"Most notably, the construction of an outer ring road, and three new urban mass rapid transit lines into central Yangon, in addition to upgraded railway lines and expressways.

"Colliers expects these infrastructure upgrades to bring increased traffic flow between the YASEC and downtown Yangon, as it falls alongside a ring road."

Mr Cuevas said he expected industries to move out of Yangon as the city developed.

"In many well-planned cities around the world, manufacturing and industry tend to be found on the urban periphery in contrast to less developed cities where they take place very close to the city," he said.

"As the government seeks to decentralise, investors are encouraged to explore real estate opportunities in the urban periphery as these areas represent the frontiers of future urban growth."

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