Rental prices for detached houses costing at least US$5000 per month have fallen between 10 percent and 25pc, said Ko Htoo Myat Naing, an estate agent at Myanmar Enterprise Real Estate Agent in Yangon.
“The detached housing market is very cool,” he said. “That market had been strong over the last year, but rental prices have dropped 10pc to 25pc depending on the location of house.”
Estate agents blamed a stronger US dollar, as the rental price for most detached houses is in US dollars.
“The dollar has strengthened from around K800 to around K1300, so the rental price in kyat is much more expensive. That could be one reason for the weaker market. But the rental prices for detached homes denominated in kyat are also falling,”said Ko Htoo Myat Naing.
The kyat rental prices for detached homes range from K1 million to over K10 million per month, depending on location, interior decoration and square footage. The detached housing markets in Bahan, Kamaryut and Yankin townships are stronger than others, said the real estate agents.
“At first, detached house landlords did not decorate the interior or fully furnish the house,” said Daw Thuzar May, Thitsar Real Estate Agency. “They now do both in order to attract renters. But prices are still falling, especially given the launch of new office towers and luxury housing.”
The rental market for smaller detached houses with rental prices between K2 million to K3 million was still strong, said Ko Htoo Myat Naing.” This is the same price range as a condo, and foreigners prefer detached houses if the price is the same,” he said.
The purchase price for detached houses in some parts of Yangon, however, has fallen over 30pc, said real estate agents.
“The price of some detached houses has fallen over 30pc and they have still not sold. Detached houses require a lot of investment, so investors aren’t interested,” said Daw Thuzar May.
Renting detached houses to foreigners was popular in 2013 during an influx of foreign companies, she said. But there has been an increased supply of luxury housing and office space, which investors can pay for through installments.
“So the investors choose the installment option,” she said.
Source : http://www.mmtimes.com/