Mandalay estate price reaches record high due to speculation!

Reported by Mandalay News Team Translated and Edited by Win Htut + MYA

There has been an increase in the number of investors in real estate for a long run in Mandalay. For that reason, estate price has reached a record high in Mandalay. The price is so high that middle-class people cannot afford to buy land for residing, according to the persons trying to buy real estate. More and more investors holding large capitals have entered into the real estate market of Mandalay since 2005 and later the price of real estate has reached record high to some extent. At that juncture, most of the investors bought only the land plots in the downtown area. The buyers are not national entrepreneurs. The value of the land plots cost hundreds of millions of Kyats. At that time, the nice places in Myothit Ward cost only tens of millions of Kyats. “It was in 2005 that most of Myanmar nationals in the downtown of Mandalay sold out their houses worth of hundreds of millions of Kyats and then moved to Myothit Ward. Most of them did not go well in their business and so they had to sell their houses. Their main aim is to get extra money to be invested in a particular business after buying a house in a suitable place. The real estate price is now gradually rising in Myothit Ward and therefore, some people have sold out their houses and are moving to the secluded places where a plot of land costs about Ks 10 million,” said a real estate agent. “At present, a land plot measuring 40 feet by 60 feet in Aungthaya Ward cost about Ks 60 million. If the price of estate rises, the workers earning a bare living sell out their houses and move to another suitable places. Those who are buying houses believe that the places they bought will become higher in the price in the future. Some buyers want to play the price in the real estate market. In this condition, the brokers start to make token of payment as deposit just after making negotiation with the house owners. After that, the brokers look for the real buyers. The land owner can afford to compensate double the amount that they had taken. Therefore, it can be said that the price of real estate in Mandalay is unbelievable,” said a local living in Aungthaya Ward. The price of real estate in Mandalay is rapidly rising and therefore those who want to really live are facing difficulties, it was learnt. “The current pay of government servants is not easy to compare the recent price of estate rising year by year. It is not easy to buy a house by saving money gained from doing a business. The price is rather high in Mandalay. It is not easy to buy a suitable land plot even through parent’s inheritance. It is not easy to guess the current price of real estate. If one starts a life only when he owns a house and a land plot, he cannot enjoy a married life in his life,” said a company staff from Mandalay. Due to the growing population year by year, the price of real estate is also rising around the world. That is a problem that we cannot avoid. However, the reason of rising price in the real estate is unusual in Mandalay, remarked economists and experts. “No business could make profit worth of hundreds of millions of Kyats in a short time. If one buys a plot of land at a cost of Ks 100 million in Mandalay real estate market, it is certain to win the profits of Ks 20 million or Ks 30 million when waiting for at least one month. In this situation, entrepreneurs do not consider any more to make investment in their businesses. For that reason, the entrepreneurs penetrate into the real estate market. In reality, Mandalay is not a populated area yet. Mandalay has a population of nearly one million people. However, the price of the property market is almost the same level as that of Singapore and Hong Kong. I think the government has got no taxes from the real estate market. At last, only those who really want to live have to face high price of the real estate. As a result, the amount of investment in the production business can diminish. Therefore, the government should control in the real estate business,” reviewed a Mandalay local. “The price of estate has become higher than that of the previous year. It can be said that the price of estate has reached a record level in Mandalay. The asking price of one square feet is Ks 2 million in the western part of 26th and 80th streets. The price was Ks 1.1 million to 1.2 million last year. More than 2,000 square feet was bought with Ks 2350 million last year and now the price has reached to Ks 5500 million”, said a real estate agent. “The buyers prefer the plots of lands in front of Mandalay Palace during this month. Now, the people from Myothit Ward have moved to the plots of lands in front of Mandalay Palace. The price of one square feet in the streets was Ks about 3 million in the previous years and now one square feet is about Ks 60 or Ks 70 million. The price of one square feet is Ks 10 million on the 62th street. One acre plot of land in front of Mandalay Palace has been sold with Ks 1,000 million. The lands in Tayetkon Ward eastern part is selling well. The prices of estate are jumping in double,” continued the real estate agent. Ks 5,000 million have been offered for a plot of land measuring 100 feet by 200 feet on Theikpan Street. It has not been sold out yet. The asking price of a plot of land measuring 40 feet by 60 feet is Ks 1,500 million. This is because property speculators are involved in the activities of buying and selling real estate. The price of one acre plot of land in Kanaung Street in Industrial Zone is Ks about 1,000 million. The price of the plots of land in the eastern part of the 51st street in industrial zone no 3 are from Ks 500 to Ks 700 million. As for Ks 500 million, one cannot buy a plot of land in the eastern part of the 51st street in industrial zone,” said a real estate agent. The price of real estate in Mandalay has reached record high because of speculators and investors. As a result, those who really want to live cannot afford to buy a real estate, said Mandalay locals.