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Thanlyin property market lurks in the shadows of Yangon

1278 Myanmar Times
Long in the shadow of its huge neigh bour Yangon, Thanlyin may be seeing the first signs of a property boom. Though located only about 45 minutes drive south of the city, the Thanlyin property market has long been stagnant, while Yangon prices have rocketed over the past few years.
First Myanmar Investment Group (FMI) is now developing a 6000 home project called Star City, near Thanlyin Bridge, in partnership with the SPA Group. The project will also feature gardens, supermarkets, shops, restaurants and public transport.
U Zaw Zaw, of Unity real estate agency, said he welcomed the development of Thanlyin Star City. "To boost Thanlyin real estate, developers should build low-cost housing at the main locations in the area. Star City is in a good location. Developing more low-cost projects like can push demand up by 20-30 percent," he said.
A possible big advantage is that Thanlyin is close to the Special Economic Zone (SEZ)of Thilawa international port and industrial zone, a prime target for foreign investment in industry. "As for as I know, there is no foreign direct investment (FDI)at Thilawa industrial zone. Singapore and China have announced plans, but with no specific timeframe yet," U Zaw Zaw said, adding that development at Thilawa industrial zone could bring improved transportation and create business and job opportunities.
"Factories, warehouse, restaurants and supermarkets are necessary to boost the industrial development of Thanlyin and create jobs for local people," he said.
The Yangon-Thanlyin bridge over the bago River cannot support container access between Dagon Seikkan and Thilawa port, he added.
The location bi-weekly journal Eleven stated on November 26 that Yangon Port Authority had offered plots at Thilawa port to large private investors. A total of 37 big plots, each of 150,000 square meters, were said to be under review by Htoo, UMEHL, Max Myanmar, Myat Myittar Mon and Shwe Taung Tan companies.
A spokesperson for a Kyauktada-based agency said the development of Thanlyin Star City would help meet the infrastructure demands needed for industrial development there, especially for real estate development in the region. "More Low-cost or such developments like that are needed to boost the Thanlyin property market Under developed infrastructure has cut Thanlyin property demand down to only about 30 pc of what we've been seeing in Yangon these last 10 years," he said. U Zaw Zaw added that Thanlyin properties are much cheaper than Yangon. Thanlyin also has many more virgin land plots to explore, though plots at Myat Yadanar low-cost housing have been sold out at a low price.
"We started selling 2400 square-foot plots at K 1 million each installment, but they are now worth more than K8 million," said U Myint Oo, chairman of Nay La Co-operatives, which established the low-cost project. A spokesperson for a Tarmwe-based agency said Thanlyin properties were less advertised in the real estate journals, and property dealings were mostly done through township-based agents, a factor he said depressed sales.
"Thanlyin properties make fewer sales. There are relatively few rentals of sales of Thanlyin properties advertised in Zaygwat and Ah Kyo Hsaung," he said, referring to real estate journals.
"Properties in Yangon are sold within a few months, but Thanlyin it can take almost a year to sell. Buyers invest only in low-end properties at main locations, K40 to K 50 million,: he said.
Daw Nan Shwe Wah, of the Thanlyin-based Rose Mary real estate agency, said her agency faced a slow market. "Real estate sales here are done by temporary walk-in brokers that have caused a drop in demand for my agency by 60 pc within a decade. Real estate business is so poor. I've had to open a tea shop," said Daw Nan Shwe Wah, who lives in Aung Mingalar ward.

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