Construction & Real Estate
From The Report: Myanmar 2019
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Since the beginning of Myanmar’s economic and political reform in 2011, the construction industry has experienced mixed fortunes. Although the government has recognised the economic multiplier effects of infrastructure development, some large-scale projects have been held up by bureaucracy and investor scepticism.

However, recent efforts suggest cause for optimism, including the large-scale urban development projects planned for Yangon and Mandalay, and the government’s assertion of its commitment to infrastructure development and public-private partnerships under the Myanmar Sustainable Development Plan 2018-30. Meanwhile, large-scale real estate projects – particularly mixed-use developments – are nearing completion, which should improve investor confidence for current and future projects. Nonetheless, after an initial property boom in the first few years after political and economic reforms began in 2011, Myanmar’s real estate sector has faced some challenges recently.

This chapter contains interviews with U Han Zaw, Minister of Construction; and Serge Pun, Chairman, Serge Pun & Associates.

Articles from this Chapter

Overview

Building confidence: Robust growth expected to continue amid efforts to encourage foreign participation and improve regulation
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Since the beginning of Myanmar’s economic and political reform in 2011, the construction industry has experienced mixed fortunes. Although the government has recognised the economic multiplier effects of infrastructure development, some large-scale projects have been held up by bureaucracy and investor scepticism. However, recent efforts suggest cause for optimism, including the large-scale urban development projects planned for Yangon and Mandalay, and the government’s assertion of…

Interview

Priority developments: U Han Zaw, Minister of Construction, on investment in key transport infrastructure projects
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Interview:U Han Zaw Which infrastructure development projects are being prioritised between 2018 and 2020? U HAN ZAW: It is the responsibility of the Ministry of Construction (MoC) to develop key socio-economic enablers, such as the highway network and the social housing programme. Between 2018 and 2020 we will prioritise roads, bridges and urban development. Key projects include Yangon’s inner and outer ring roads, the Korea-Myanmar Friendship Bridge, the third Bago River Bridge, the New…

Analysis

A bold vision: Developing a new city to cater to a growing urban population
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In an effort to alleviate problems associated with rapid urban growth, the Yangon regional government announced the formation of the New Yangon Development Company (NYDC) in March 2018. The NYDC is tasked with overseeing the development of a new city on the western outskirts of the commercial capital. The development of New Yangon City is planned in two stages. Phase one will be carried out on 80 sq km of land on the western bank of the Hlaing River. Planned infrastructure include an industrial…

Interview

Comprehensive connectivity: Serge Pun, CEO, New Yangon Development Company, on the ongoing evolution of urban infrastructure
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Interview: Serge Pun What steps can the authorities take to boost investment in affordable housing? SERGE PUN: First and foremost, the government must clarify the scope and purpose of its affordable housing projects. The development of these initiatives should serve people who could not afford a house otherwise, and it must principally serve this strata of society. In other countries the government provides affordable housing to people who only qualify by meeting certain requirements of need, which…

Overview

Access all areas: Easing of financial restrictions and ownership rules expected to boost foreign investment in high-quality properties
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After an initial property boom in the first few years after political and economic reforms began in 2011, Myanmar’s real estate sector has faced some challenges in more recent years. The country’s main real estate market, Yangon, experienced peak office rental prices as high as $110 per sq metre in 2013 and 2014, putting it on a par with cities such as New York. However, rental prices have dropped by an estimated 30% since then, as supply has outstripped demand while economic growth…

Analysis

A lending hand: Condo law and credit bureau to spur growth in mortgage market
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A major factor constraining the development of the real estate sector is the lack of a mature mortgage market. Ambiguities on regulations related to immovable property rights, and incomplete or incorrect ownership records, are two of the main reasons why a mortgage culture has not yet developed in Myanmar. After promising growth in the first few years after political and economic reforms began in 2011, the real estate sector has struggled to maintain pace in recent years. Legislative efforts…