As Agency Director at Slade Property Services (SPS) Fred Hassim is responsible for running the day to day agency side of the business and the SPS team of property professionals. 

His role includes client management and stakeholder engagement, together with business development and preparing proposals for new and existing clients.

WILLIAMS MEDIA spoke with Fred Hassim about his experience in real estate and Myanmar's property market.

When did you first start working in the property industry?

I started working in the real estate business 25 years ago in Australia working for a company called Baillieu Knight Frank, which was part of the Knight Frank group from the UK. I worked in several departments including office leasing, industrial sales, and leasing and city sales. I was able to learn from the best operators in the business. And, during this time I also studied real estate at night school three nights a week.

What are some of the defining moments in the Myanmar real estate/expat history?

In my opinion, the defining moment was the election of the National League Democracy. This victory encouraged a number of multinational companies to either commence operations in Myanmar or to start feasibility studies to determine the viability of establishing operations here. This led to an influx of expats working for these organisations.

What suburbs in Yangon are popular with expats looking to rent or buy?

The vast majority of expats lease property due to restrictions on foreign ownership, generally most expats like the "hustle and bustle" of downtown with its proximity to restaurants and bars and other entertainment. Senior executives generally stay in the outskirts of the city, in serviced apartments and 5-star hotels which are located in numerous locations on the outskirts of the CBD area.

What are some of the key opportunities emerging in the marketplace that people should be looking into?

I believe there are opportunities in various areas. We have seen a strong increase in our research and property valuation business. This is being driven by local businesses with the opening of the market needing to interact with the international business community that requires robust research and property valuations based on international standards.

Objective value indicators such as gross development value (GDV), internal rate of return (IRR), discounted cash flow (DCF) are now required to justify valuations. Our agency department has also experienced an increase in activity due to our association with the award-winning mixed-use development Kantharyar Centre. We also see enormous potential in the industrial sector, as large multi-nationals seek quality office/warehouses that are very difficult to find. Existing warehouses lack adequate warehouse clearances, truck turning areas, parking and halogen lighting. I believe that if world-standard warehouses were built on spec, they would lease very quickly so long as they were built in the right locations.

What advice would you have for those looking to set up businesses in markets like Myanmar?

The best advice I can offer is to do your research! Myanmar is a unique market. And the more you understand this market the better you will be placed to succeed. SPS has completed a number of market entry research reports for companies entering the Myanmar market. They have proved to be invaluable.

My second piece of advice is to manage your expectations. Things here take time, so ensure you factor in adequate contingency within your business plan/strategy.

What advice do you have for people looking to buy or rent in Myanmar?

Take your time, there is plenty of property available for sale and lease. If it's a new development you are looking to buy into, research the developer, look at what they have built previously and inspect those properties for wear and tear over time. Check to see if there is any type of sinking fund for routine repairs and maintenance. Many buildings here look run down after only one or two years after construction.

Also, whether you are buying or renting, factor in travel time to those locations you visit the most as traffic congestion can seriously slow you down.

Finally, engage a professional real estate professional as they can allow you to avoid common pitfalls and find the most suitable property as they are dealing with properties every day. A good agent is more than worth their fee.

How do you or SPS best help a buyer or tenant?

Firstly, we have a dedicated team of both local and international property professionals, our local staff have been with SPS for many years and have excellent market knowledge. We also have very strong relationships with the major property owners and developers due to our track record of negotiating property deals. This experience and market knowledge ensures we can give buyers and lessees the best possible advice available.

Which sectors in Yangon are more active at the moment for foreign investors?

Manufacturing and infrastructure are without a doubt the strongest and most active sectors for foreign investors at the moment. There are a large number of Asian-based enterprises establishing operations here undertaking manufacture. Garment manufacturing is big business in Myanmar and is encouraged by Myanmar's LDC status which qualifies exports from Myanmar for tariff concessions for exports entering places like the European Union. There are a number of large infrastructure projects either underway or out for tender, which is a major benefit to the economy as a whole.

Other industry sectors are also set to boom, for example, the insurance industry, banking and finance and logistics which have or are in the process of obtaining the relevant licenses to operate. In summary, the future looks promising at this point in time.

What would you like to see changed in the industry in the next five years?

I would like to see the introduction of formal property qualifications being available to those wishing to develop a career in the industry. Courses like property valuation and estate management would greatly enhance the quality of property professionals in the industry. I would also like to see some form of regulation. Real estate professionals should need to have a license to operate, based on experience and qualifications.

Where do you see the Yangon residential market in the next five years?

In time, the market will undoubtedly become more market-driven and sophisticated. Developers will begin to build a higher quality product, catering to what the market requires. With these changes, research will begin to play an important role in determining the how key players, particularly developers, react to the market, and how they contribute moving forward.

For more information about Slade Property Services or Myanmar's real estate and property market email Fred Hassim of Slade Property Services via the contact details listed below.

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