MORE AFFORDABLE HOUSING BECOMING AVAILABLE IN YANGON

NEWS

The Department of Urban Housing and Development (DUHD) under the Ministry of Construction will stop new housing projects but will allow the completion of projects currently underway, said Daw Mi Mi Tin, deputy director general of the Policy and Project Section of the department. DUHD is now selling completed flats this month as well as those meant for completion in 2018-19 fiscal year.
(Source: The Myanmar Times, December 17, 2018)

CLICK HERE TO VIEW THE ARTICLE

RESEARCH VIEW

While we have likewise observed capable buyers and investors for upscale projects, the inventory is noticeably outpacing demand. Given such, few developers are now expanding their mass market. Early on this year, several developers announced that they are planning to expand beyond high-end and luxury properties in a bid to promote home ownership and growth in the country. This includes developing low-cost housing projects, backed by partnerships with private banks in the country. This will enable developers to work closely with the banks in bringing a larger pool of financing options to potential home buyers, helping them to better afford new homes. Overall, we continually advise developers to address issues around affordability by introducing competitively priced products, starting with looking at reasonably priced land. In particular, site selection can be geared towards alternative and accessible development sites in the immediate outskirts of Yangon. Generally, the market is seen to favorably improve in the coming years, on the back of the government's exertions in providing clearer sectorial reforms.

INVESTORS KEEN TO PARTICIPATE IN MAJOR YANGON REDEVELOPMENT PROJECT

NEWS

Investors from China and Hong Kong are keen to participate in the New Yangon City Project, said the New Yangon Development Co (NYDC) yesterday. To invest New Yangon City Project, according to New Yangon Development Company (NYDC) CEO Office said on December 5. A statement issued by the NYDC CEO’s office yesterday said Ning Jizhe, vice chair of the National Development and Reform Commission of China (NDRC) met with Yangon Regional Minister U Phyo Min Thein last month during an official visit and discussed the implementation of the New Yangon City Project. Ning reiterated China’s support for the project during the meeting. This is significant as considerable investments will be required for the construction of the basic infrastructure of the new city, NYDC CEO Serge Pun said. Last week, a delegation from the Hong Kong Trade Development Council also visited Yangon. Among the delegation were industrialists and manufacturers who expressed an interest in investing in New Yangon City as well as migrating existing manufacturing facilities from China to Myanmar.
(Source: The Myanmar Times, December 12, 2018)

CLICK HERE TO VIEW THE ARTICLE

RESEARCH VIEW

The “New Yangon City” project poses growth opportunities to positively facilitate Downtown decongestion. Having infrastructure in place is key in successfully linking these future and modern urban zones from the already frenetic business district. Industrial corridors are as similarly imperative. Hence, a superior and well-thought zoning master plan that forms synergistic relationship must come as a top of mind priority.

MYANMAR INTRODUCES BONDED WAREHOUSING, LOWERS RAW MATERIAL IMPORT DUTIES

NEWS
The customs department will introduce customs warehouses, or bonded warehouses – where goods can be stored without Value-Added Tax (VAT) or import duties – in the country, Finance Minister U Soe Win said on Friday. The aim is to align local customs warehousing procedures with international standards and reduce import restrictions on Myanmar goods, the cabinet minister explained during a meeting with Vice President U Myint Swe and business representatives. The tax reductions will involve lowering the advanced income tax burden and simplifying the logistics processes to save time..

(Source: The Myanmar Times, December 17, 2018)

CLICK HERE TO VIEW THE ARTICLE

RESEARCH VIEW
Daizen, a Japanese logistics company, is the groundbreaking case for SEZ bonded warehouses in the country. As Colliers sees it, economic growth can accelerate by relieving cash flow due to retaining goods until transported to end-user when customs duty is then paid. Colliers welcomes the notion for increased import and export, and legitimization of existing cross-border trade with ASEAN economies such as India, Thailand, etc. Other industry players are watching closely and are developing locations for bonded warehouses (e.g. Kerry Logistics at East Dagon). As Myanmar's premier industrial park, it remains to be seen whether Thilawa SEZ's long-term economic role is to consolidate manufacturing or warehousing and logistics operations, or broad mix of functions. This will determine how other industrial estates will gain a foothold within Myanmar's industrial development.