The fortunes of property near Bayintnaung Road (above) are closely tied to the success of the Bayintnaung Complex, and consequently the business climate in the country as a whole, real estate agents say.

THE area around where the Yangon River meets the Hlaing River has developed rapidly since the early 1990s with the introduction of market-oriented economic policy and the Bayintnaung trading centre.

The Bayintnaung Complex, Myanmar’s most important import and export marketplace, instigated much of the development here. Prior to the complex’s opening in 1990, the area was only sparsely populated and Bayintnaung Road was just a small lane.

The spur to change came when the current government came to power and decided more emphasis needed to be placed on market trading practices, giving rise to a commodity wholesale area and meeting point for buyers and sellers of goods from Myanmar and abroad.

Demand for property here grew rapidly as the complex became more established, prompting contractors to develop quickly.

“The complex will continue to be the country’s biggest market for agricultural products,” said U Than Htun, a legal consultant and marketing adviser for Unity real estate agency.

Two-storey shop-houses in the complex with floor areas of 1200 and 2400 square feet are currently selling for K120 million and K250 million respectively.
Real estate agents note, however, that the rental market is more active than sales, with a 2400sqft shop-house costing about K700,000 a month.

Opposite the complex is the Thiri Mon housing project, developed by Wah Wah Win Construction Company, which includes showrooms for agricultural machinery and electrical equipment.

Houses here cost between K10 million and K20 million.

Other housing projects on Bayintnaung Road are Aye Yeik Mon, Mya Kan Thar and Mya Kan Thar Garden.

Aye Yeik Mon housing project was developed by Yuzana Construction Company and the Department of Human Settlement and Housing Development (DHSHD) in 1996 as part of the government's “From Huts to Apartments” project.

“Occupants in Aye Yeik Mon are mostly brokers and dealers from Bayintnaung Complex. Some residents have opened offices at their homes,” U Than Htun said.

Properties at the project range from 4800 to 7200 square feet and are currently selling for K160 million to K200 million.

U Than Htun said Aye Yeik Mon experienced its highest demand from 2000 to 2004.

“During that period, prices went up to K300 million following a surge in demand from traders who had migrated to Yangon from other parts of the country to start businesses at Bayintnaung,” he explained.

However, prices decreased as supply caught up to demand.

Beside Aye Yeik Mon are the Mya Kan Thar and Mya Kan Thar Garden projects, developed by Olympic Construction Company (now Shwe Taung International Company) together with the DHSHD.

“Among the properties in this area, Mya Kan Thar is the best in a variety of ways”, said U Than Oo, the managing director of Mun Daing real estate agency, citing security, privacy and landscaping as attractive qualities.

Financing had also played a role in the project's success, he added.
“Asian Wealth Bank (AWB), which is run by the owners of Olympic Construction Company, offered loans for properties at Mya Kan Thar. That’s why it sold out in a such a short time. If such assistance was widely available, the property sector would be much more active,” he said.

After finding success with Mya Kan Thar, Olympic Construction Company developed the Mya Kan Thar Garden project, also with the DHSHD, in 2003.
Land initially sold for K10,000 per square foot but 8000sqft sections with houses were soon selling for about K140 million.

As prices rose for construction materials, new homes went up to about K200 million each.

“However, sales were much more sluggish at Mya Kan Thar Garden than Mya Kan Thar. I think it was because AWB could not arrange housing loans,” U Than Htun said.

AWB folded in 2003 during the Myanmar banking crisis that year.
Also in the area is the Shwe Mar Lar housing project on Bayintnaung Road, which has a good reputation for quality and style.

“In 1997 and 1998, many big construction companies stopped work on projects due to the Asian economic crisis, but Golden Flower Construction Company kept on with its project, Shwe Mar Lar,” said U Than Oo.

“It became an encouraging factor in getting other companies to restart their projects.

“As it was the only housing scheme finished in that period, it was received favourably by buyers.

“It’s still got a good name in the property market and homes there sell for good prices,” he said.

Apartments at Shwe Mar Lar currently fetch K45 million to K120 million.
U Than Oo noted that as most properties in the area were developed in response to the rise in commercial activity, the greatest demand came from traders.

Accordingly, real estate experts say the property market here has become sluggish in response to a general slowdown in business activity in the country.
However, they note it will likely be the first area to rebound with upturns in the country’s business climate.

“Bayintnaung market plays a very important role in the country’s economy,” said U Than Oo. “So long as there is the Bayintnaung Complex, the area will keep on developing. As such, this is a good place to invest.”

Next week:
Across the Hlaing River