Construction & Real Estate
From The Report: Myanmar 2020
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Construction activity has increased significantly in Myanmar as the country works to address gaps in transport and power infrastructure, as well as an affordable housing shortage. The creation of several economic zones aimed at attracting investment over the coming years is expected to further the expansion. Cooperation with international organisations and partners such as China, Thailand and Japan will help the country acquire the knowledge and technology necessary to move forward. In recent years Myanmar’s real estate market has been hampered by oversupply, regulatory uncertainty, and an absence of consumer financing or avenues for international investment. However, as market conditions improve, new laws and regulations governing the development and sale of condominiums to foreigners, along with greater flexibility in mortgage financing, have set the stage for sector recovery. This chapter contains an interview with Stephen Suen, Chairman, Marga Group.

Articles from this Chapter

Overview

Concrete foundation: Mega-projects and infrastructure development support growth
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Construction activity has increased significantly in Myanmar as the country works to address gaps in transport and power infrastructure, as well as an affordable housing shortage. The creation of several economic zones aimed at attracting investment and new cities over the coming years is expected to further the expansion. Cooperation with international organisations and partners such as China, Thailand and Japan will help the strategically important country acquire the knowledge and technology…

Analysis

New city rising: Chinese investment drives large-scale development
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Mandalay is booming on the back of rising international investment and government efforts to foster the northern city as an engine of national growth. Local officials expect the economy to grow by 8.1% in 2019, outpacing national GDP growth of 6.1% and the city’s 2018 growth rate of 7.2%, the regional chief minister, U Zaw Myint Maung, told local press in March 2019. “Situated between India and China, Mandalay will experience a housing and infrastructure boom in the future that will position…

Interview

Maturing process: Stephen Suen, Chairman, Marga Group, on improving operating conditions to attract foreign investment
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Interview:Stephen Suen How would you evaluate the current supply-anddemand ratio of residential real estate in Yangon? STEPHEN SUEN: Yangon’s residential supply, like Bangkok’s and Shanghai’s in the past, is inflated by a large number of defective units. Many have a faulty design, are unprofessionally built, have illegal structures, are in bad locations, or are in unacceptable living environments. To assess true residential demand, such defective units need to be excluded from the available…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
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From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry in silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time, transmitting knowledge across distance and cultures. Extremely rapid economic expansion in China in the four decades since former leader…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
OBG
plus

From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry in silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time, transmitting knowledge across distance and cultures. Extremely rapid economic expansion in China in the four decades since former leader…

Overview

Building flexibility: Improved market conditions and new laws and regulations are expected to boost sector development
OBG
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In recent years Myanmar’s real estate market has been hampered by oversupply, regulatory uncertainty, and an absence of consumer financing or avenues for international investment. However, as market conditions improve, new laws and regulations governing the development and sale of condominiums to foreigners, along with greater flexibility in mortgage financing, have set the stage for a sector recovery. Regulation & Oversight he Department of Urban and Housing Development (DUHD), which…

Analysis

Policy evolution: Increased financial flexibility allows greater access to the market
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In January 2019 the Central Bank of Myanmar (CBM) gave the green light for banks to raise the share of home loans in their portfolios to 5% of the total and to extend debt instrument maturities beyond the previous limit of three years. The move saw credit extended to the real estate sector surge by 200% in the first quarter, albeit from a small base, in the process enfranchising thousands of would-be homeowners with the financial flexibility to purchase their own property. According to the…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
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Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…

Overview

Urban adaptation: Rapid urbanisation and young, growing populations put pressure on emerging markets to solve housing deficits
OBG
plus

Urbanisation is a mega-trend redefining contemporary life in both developed and emerging markets across the world. This mass rural-to-urban movement of people and expansion of cities to absorb formerly isolated villages is a relatively recent phenomenon, at least in the developing world. According to the UN, in 1950, 751m people lived in urban areas; however, by 2018 this number had risen to 4.2bn, equivalent to roughly 55% of the world’s population. By 2050 the UN estimates that this figure will rise to 68%. This growth will not be distributed evenly, but rather disproportionately concentrated in the developing world, with high rates…