A total of 32 property developers and construction companies were issued with developer licenses from the government last week, three months after a building management committee was formed to facilitate the enforcement of the 2016 Condominium Law.

This comes after 20 licenses were issued a month after the committee was formed, said U Myo Myint, general secretary of the Myanmar Construction Entrepreneurs Association and a member of the building management committee.

The committee was formed to help clarify areas in the Condominium Law that are still vague on issues related to foreign property ownership. Among its duties are to act as a liaison between the government and foreign investors in the property sector.

For example, if foreigners purchase a condo, they will have to transfer the payment via banks in their country of origin into a bank account in Myanmar, the law says. Negotiations between the Central Bank of Myanmar (CBM) and the collectively-owned building management committee will be held to facilitate the payment for foreigners.

Meanwhile, those who build collateralised buildings will have to open an official local bank account and deposit a minimum amount of capital to show they have funds in the country.

Currently, the Myanmar Banks Association and CBM are also discussing terms involving installment payment for property purchases made by foreigners, said U Myo Myint.

The local property and construction market is expected to pick up with more clarity on the rules and regulations now available for foreign investors. “There will be some movements in the condo market by the end of next year and we could see more activity at around 30 to 40 condos in accordance with Condominium Law,” U Myo Myint said.

More developer permits are expected to be issued in June, according to U Myo Myint. Meanwhile, condo projects which are already completed or still under construction will add more supply to match demand in the market.

“Although the management committee hasn’t had significant effect on the market yet, I think it will surely bring more momentum in the construction sector,” said U Kyaw Sithu, Property Sales Director of Success Property Consultant Company.

There are a total of about 30,000 apartments being built, of which 60 percent are already completed. Sales are expected to get better in May, after the Thingyan water festival, said U Kyaw Sithu.

“The registered condos will see higher sales. I think it will be easier for buyers to make their decision to buy them as these units are likely to become more popular in the future,” said U Kyaw Sithu.

U Nay Min Thu, managing director of iMyanmarHouse.com, warned though that better prospects for property hinges on a healthy economy. “When the Myanmar economy is better, more foreigners will come to work in the country and condo sales will increase. But if there aren’t many foreigners due to economic conditions, then the Condominium Law will have no effect on the market,” he said.

Source: https://www.mmtimes.com/news/govt-issues-developer-licenses-construction-companies-prospects-improve.html