Myanmar has long been touted as a potential investment star of the ASEAN for years now. Like any frontier market, the country has experienced ups and downs. The uneven implementation of both the 2016 Condominium Law and 2017 Condominium Rules created some confusion which made it difficult for overseas buyers to invest in Myanmar real estate.
However, the country looks to finally be turning the corner and this means now just might be a good time to invest in Myanmar real estate. Last year saw the Ministry of Construction form a committee to get the ball rolling and now it is possible for international investors to purchase a condominium unit in the country.
Since it is finally possible to invest in Myanmar real estate, the question is now should you do it. As with all frontier market investments, there is risk, but the returns could be better than anything currently available in Southeast Asia.
3 reasons you should invest in Myanmar real estate
1) First movers always rewarded
If you’re considering an investment in Myanmar real estate, look no further than Bangkok or Metro Manila for the benefits of being a first mover. In the Thai capital, the price of resale freehold condominium units in prime areas almost doubled between 2004 and 2013, according to CBRE Thailand. The consultancy also found that prices jumped by at least 50 percent between 2014 and 2018 with some areas recording higher price growth.
It has been a similar story in Metro Manila during the past few years as a strong economy fueled by overseas investment caused condominium prices to soar, according to research from Bangko Sentral ng Pilipinas, the country’s central bank.
A city such as Yangon could be poised to see similar growth in the years to come. However, the difference between investing today and five years from now could be a costly one.
2) Myanmar economic outlook remains solid in mid- and long-term
The economic growth of Myanmar after it opened up was sharp with foreign investment being a key driver. Like most other countries, the country is dealing with the fallout from COVID-19 in the short term. However, overseas private equity investors active in the country, such as Ascent Capital, remain upbeat about the economy’s prospects in the mid- and long-term.
That being said, Myanmar’s economic transformation is entering a crucial stretch and the next few years will be important as it looks to recapture growth post-pandemic.
3) Modern developments take shape
Perhaps the largest concern facing investors is trusting a developer in a market where modern condominiums are still uncharted territory. One developer in Myanmar is changing that. Mandalay Golden Wing Holding Limited (MGW) has local experience as well as knowledge backed by an international team of experts.
The developer’s newest project, Diamond Inya Palace, is a gamechanger for the Yangon property market. Not only is the project the city’s tallest residential building, but it is one of the only developments offering an international standard of luxury.
Diamond Inya Palace is in one of the best locations in all of Yangon with the beautiful Inya Lake and the greenery of the Diplomatic Compound providing a stunning backdrop. No other project can match the views found in the units here.
What’s more, Myanmar Condo Law and individual ownership is granted for every local and foreigner purchasing a residence at Diamond Inya Palace. MGW is one of the few developers in Myanmar with the skills and understanding to assist overseas property investors.
About 20 overseas nationals have inquired about this project resulting in four secure sales. Our first customer was from Dubai and his purchase was one of the eight penthouse units. Two units sold were four-bedroom units, with interest from clients from Korea and China. Our recent sale from an overseas buyer was another four-bedroom unit, from Singapore and the US.