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Building for the Future

Building for the Future

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Published by The Myanmar Times

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Published by: The Myanmar Times on Dec 02, 2013
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Open season: Govt budgets for road ahead
Handmade brick (from Taikkyi)
 Machine-made brick 
Handmade brick 
Sand (smooth)
Sand (rough)
 Pebble (simple)
Pebble (bright white)
Cement (Elephant)
 Galvanised roof (Elephant thick)
Galvanised roof (Five Star)
This size ranges from 6 to 12 feetGalvanised roof (four angle colour)
K500perfoot K520perfoot K570perfoot 
Construction materials
Prices in Yangon, November 2013
Compiled by  Myat Noe and  Mya Kay Khine
ITH Yangon’s real estate market  booming, it’s not just the sellers who are turning a profit. Real estate agents – those in the middle, helping  both sides close the deal – are also  benefiting, although one negative side effect of the property gold rush, accredited agents say, is now everyone wants a piece of the action. That’s a bad thing for customers needing an experienced, steady hand, says U Aung Kyaw Moe, marketing manager at Estate Myanmar real estate agency.“It seems a career as a broker is easy to do and everyone can do it. In my opinion, estate agents or  brokers should work steadfastly in their careers for the long term,” U  Aung Kyaw Moe said. “An estate agent’s career is not easy as other people think.” With foreign investment companies entering Myanmar this  year, real estate agencies are now seeing more business from foreigners than ever before.But whether new to the culture or a lifelong resident, U Aung Kyaw Moe advised buyers and sellers to always go with established, experienced agents to help them navigate what is, for most, a stressful and challenging process. With ownership papers being one of the biggest challenges of any property deal, he said, it’s especially important to have a professional look into the background of the property, to make sure the person  you’re dealing with has the legal right to offer up the property.“I have met some people who have had disputes over this matter,” he said. “So I want to advise that people should ask about the properties first, before they buy them, and should buy only if there is no problem with the possession of documents for the properties.”Property listings are available from real estate journals such as
 A Kyoe Saung 
 (Agent) and
Golden Triangle
, but direct contact with real estate agencies and property owners is the best way to proceed, said U  Aung Kyaw Moe.“Buyers should enquire about property prices from real estate agencies … then discuss the property  with the agency,” he said, adding that it’s important to get legal advice as well.U Yan Aung, general manager of U Sai Khon Naung real estate agency, agreed that it’s always best to avoid fly-by-night part-time operators.“Licensed agencies which pay tax to the government are trustworthy,” he said. “They can provide detailed information about the properties and their fees are very reasonable.”Commission fees, which are set by the Myanmar Real Estate Services  Association, depend on the price of the property. When the purchase price is up to K10,000,000 (100 lakhs, or about US$10,200), the commission fee is 3 percent; over K10,000,000 and the commission fee is 2pc, with the seller required to pay the commission fee.  With rentals, U Yan Aung added,  both tenant and landlord pay one month’s rental charge for a year-long rental, or half a month’s rental charge for a six-month rental.Like buyers, renters must also make sure the person putting the property up for rent is actually allowed to do so. “If you want to rent a house, you should check whether the host has right to rent the home or not. If not, you’ll face legal problems.”More foreigners entering the country means more property deals, though most seem to be looking for rentals rather than purchases.“Renting increased about 50pc in the second half of 2012,” he said,  while buying and selling rose in the first half of 2013 but have since  been dropping again. While the influx of business means real estate agents are more necessary than ever, U Aung Kyaw Moe said it’s also left some in the  business fighting to prove their  worth.“If the real estate agencies can’t provide the best deals in the property sector, agencies and estate agents will disappear.”
Translation by Win Thaw Tar 
What’s the deal with brokers?
 Agents are an important link in the real estate chain, bringing together buyers and sellers and making sure deals are on the level 
     P    r    o    p    e    r    t    y
  s  p  e  c   i  a   l   R  e  p  o  r   t
 Myo Lwin
Wade Guyitt, Mya Kay Khine Soe
 Aung Kyaw Nyunt, Myo Lwin,  Mya Kay Khine, Wa Lone,  Nyan Lynn Aung, Nandar Aung,  Zon Pann Pwint, Aye Thidar Kyaw,  Ei Ei Thu
 Kaung Htet, Aung Htay Hlaing, Ko Taik
Tin Zaw Htway, Ko Pxyo,  Khin Zaw, Ko Ko Zaw
Engineers discuss plans in front of the Mingalar Mandalay project in Mandalay last week.
Photo: Phyo Wai Kyaw
 What is your ministry’s  budget for financial year 2013-2014, including additional  budget?
 We got K191.7 billion (US$191 million) for construction of roads and bridges. But we will not be able to fully implement the section  between Palae-Gantgaw-Kalay in the Asia-ASEAN Highway No 1 (Myawady, Hpa-an, Thaton, Phayagyi, Meiktila, Monywa, Palae, Gantgaw, Kalay, Tamu Highway)and the section between Kengtung and Loilem on the Asia-ASEAN Highway No 2, that were supposed to be upgraded to a two-way tar road starting from 2014. Some other sections of the ASEAN Highway (Thibaw and Loilem, Thaton-Moulmein-Yay, Dawei, Myeik and Kawthoung) still cannot  be upgraded to two-way status. The hluttaw has approved an additional  budget of K2086 billion.
 What about the budgets forthis  yearandlast?
For this financial year, we got K212.109 billion. Last year, it was K393.278 billion. So we got K181168  billion less than last year.
Howmanyprojects are planned forthis year?
The Ministry of Construction has implemented new road-building and upgrading. Road constructions are Kawtkarate Road, Thanbyu Zayat-Phayar Thone Su Road, Kawtkarate-Kyitedone-Azin Road, Kyunhla-Chathin-Kawlin Road and Malun-Sitsano-Yananma-Kyutpone-Kantote Road. We are upgrading the Mandalay-Shwebo-Myitkyina Road, Mandalay-Takaung-Bamaw-Myitkyina Road, Monywa-Pale-Gangaw Road and Kalay-Gangaw Road.Bridge projects of 1000 feet or more include Thanlwin Bridge (Pharsaung) on the Taungoo-Mawchee-Loikaw Road in Kayah State, No 3 Sittaung Bridge over the Kapoun-Myitsu-Htantapin Road in Bago Region, Sunye Bridge and Sinkhonetine Bridge over the Pouktaw-Minpyar Road in Rakhine State, No 2 Bayintnaung Bridge over the Yangon-Pathein Road in Yangon Region and the Mekong Bridge (Myanmar-Laos Friendship Road) over Tarlay-Parsho-Kyinelin Road in eastern Shan State.
Howdo yousee publicopinion on these projects?
Myanmar needs many infrastructure projects. I  believe people will understand  because we pay attention to elected representatives in fulfilling the needs of the country.  At the same time, we are making reforms in every department.
Has the ministry facedobstacles in implementing the  projects?
 The ministry is undertaking many infrastructure projects throughout the country, including remote areas, as stability and peace improve. We are asking international organisations like JICA, ADB and KOICA to provide financial assistance.
 What’s your opinion of  the rumours that cronies  have been given priority in  tendering?
 We carry out development tasks  with private companies in joint  venture and BOT systems. Later,  we’ll make use of the Public Private Partnership (PPP) system. Starting from this fiscal year,  we’re buying building materials  by inviting open transparent tenders through the media.  And we’re operating real estate redevelopment projects including  building enterprises with the open tender system.
 What about mountain path transportation andfuture  plans?
 We’re implementing the five-year short-term project and 20-year long-term project to equally develop the whole country, including the states. The ministry is responsible for the Union roads, international connection roads, roads connecting townships, and roads connecting regions and states, while the Ministry of Livestock, Fisheries and Rural Development and the Ministry of Border Affairs take responsibility for roads between townships and villages and  border-area roads.
Some say road tolls are increasing. Will they be reduced?
It is not true that the ministry has increased tolls, which are far lower in Myanmar than international standards require. Some enterprises use the BOT system. There is no plan to reduce tolls.
Open season: Govt budgets for road ahead
Union Minister for Construction U Kyaw Lwin discussed the budget, big construction projects and crony issues with The Myanmar Times senior reporter Hsu Hlaing Htun last week in Nay Pyi Taw 
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U Kyaw Lwin, Union Minister for Construction
ITH foreign investments flowing into the country, the construction and property markets have become leading options for investors. As a result, some families are choosing to “cash out” of their current residences by turning them into multi-storey buildings, moving themselves to cheaper, smaller residences and making money on the exchange. It’s a tempting option for those lucky enough to own land in a desirable area. With the right help  you can end up with a shipshape high-rise building or beautifully landscaped houses even though  you don’t have any idea at all about the sector yourself. At the same time, however, it’s important to consult with the experts if you’re considering this for yourself. While the collaborative efforts of owner, engineer and architect can shape desires into ideas and plans into reality, it only  works if everyone’s on the same page from the beginning.Engineer U Zaw Linn inspects  whether materials and procedures defined by both sides are actually the ones being used in construction. Unfortunately, he said, some of the time they’re not. In some unscrupulous companies, corners sometimes get cut, and without supervision, the owner may be left none the wiser – and dealing with the fallout down the line.“The owner and contractor already calculated the designs, the materials and the cost,” U Zaw Lin said, describing his role.“I have to inspect if these are actually used. My role is  between the contractor and the owner, and there are some contractors who  want to trick the owners, as they think the owners won’t know.”It’s all about getting back the  value you’ve paid for, he said.“The difference between  building with and without a quality controller is if the contractor is a righteous one, then the owner  would get a building equal to the expenditure. If the contractor is tricky, the owner will be faced with a loss. So the first thing the owner should do is to ask advice from acquaintances who have experience in this field.” After seven years in the trade himself, U Zaw Lin has found it’s important to choose those contractors who are actually capable rather than simply popular. As in any relationship – business or otherwise – trustworthiness is crucial.How do you build trust? Start  with a contract that clearly outlines all aspects of the project, U Zaw Lin advised.Then, he added, “If any problem arise after building, action can be taken according to the contracts. That’s why both sides should make it carefully.U Zaw Lin is presently supervising construction of an eight-storey building on behalf of the owners. Large or small, he said, the durability of a building depends on the materials used. The Yangon City Development Committee rules that any building has to be made to last for at least 50 years, so it’s important to make sure that the individual parts add up to the proper whole.U Aung Soe Hlaing, project engineer with Marvels Wealth Construction, agreed that spending time – and money – on careful contracts and knowledgeable supervision is the surest way to ensure a result that lasts.
Translation by Sandar Lwin 
Real estate wars: Yangon's most expensive areas
Botahtaung township
K500,000 to K800,000 per square foot(land only)main roads
Kyauktada township
K1.2 million per square foot(with building) Anawrahta road, some commercial areas K550,000; secondary roads K300,000 to K400,000
K1.5 million per square foot (with building)Strand Road
Pabedan township
K1.3 million per square foot (with building)main roads
Pazundaung township
K500,000 to K800,000 per square foot (land only)commercial areas
Lanmadaw township
K800,000 per square foot (land only)main roads
 A breakdown of construction material costs for a two-storey building
Total Price(K)
1 Cement 2217.10 Bags 6,500 14,411,1562 Brick 129010.35 Nos 120 15,481,2423 Stone Aggregate 61.55 Suds 85,000 5,231,7734 Sand 116.45 Suds 25,000 2,911,1775 BrokenBrick 25.21 Suds 45,000 1,134,2646 Jungle Wood 41.61 Tons 650,000 27,048,2887 10mM.SBar 4.46 Tons 850,000 3,794,4638 12mM.SBar 1.22 Tons 850,000 1,039,0779 16mM.SBar 1.23 Tons 850,000 1,046,46210 18mM.SBar 7.85 Tons 850,000 6,674,10411 6.5mmØ M.SRod 3.30 Tons 850,000 2,808,09912 PyinkadoWood 9.53 Tons 1,200,000 11,436,28313 1-1/2”x1-1/2”Beadings 1500.00 Rft 300 450,00014 2’x2A.C Sheet 1847.48 Nos 1,600 2,955,96015 X-Met 22101.85 Rft 65 1,436,62016 Binding Wire 361.46 Lbs 555 200,61217 5-Plywood (8’x4’) 476.81 Shts 15,000 7,152,19118 wire Nails 459.30 Lbs 694 318,75719 4”Butt &Hinge 310.00 Nos 600 186,00020 6”WindowHandle 56.00 Nos 700 39,20021 6”Tower Bolt 56.00 Nos 550 30,80022 Hook &Eye 56.00 Nos 600 33,60023 Wood Screw 1039.72 Dozs 300 311,91624 Hold Fast 100.00 Nos 50 5,00025 EmulsionPaint 329.10 Gals 9,700 3,192,29426 OilPaint 10.22 Gals 16,000 163,44027 WallPutty 170.95 Gals 5,000 854,76128 Roller 20.00 Nos 2,500 50,00029 Brush25.00 Nos 1,500 37,50030 Door Area 1002.00 Sqft 8,000 8,016,00031 WindowArea 360.00 Sqft 5,000 1,800,00032 Chowket 1456.00 Rft 2,000 2,912,00033 Roofing Sheet 5470.00 Sqft 600 3,282,00034 Guttering 208.00 Rft 700 145,60035 Ridge Cover 104.00 Rft 600 62,40036 Roong Screw 1000.00 Nos 35 35,00037 1-4”x2”x1’-6”MSFlat 140.00 Nos 1,800 252,00038 Bolt &Nut 280.00 Nos 700 196,00039 Bamboo 3474.24 Nos 2,000 6,948,48040 Coinyan 199.05 Viss 2,000 398,09041 Fuel 132.24 Gals 4,500 595,06642 WallTile (1’x8”) 4200.00 sht 450 1,890,00043 Floor Tile (1x1) 378.00 sht 600 226,80044 White cement 30.00 lbs 1,000 30,00045 Steelhandrailing work 314.88 Sqft 9,000 2,833,875
Total CostK140,058,351
 A blueprint for success
 Supervision – and a clear contract – mean you’ll get the building you’ve paid for This graph shows the breakdown of the average  price of building a two-storey building measuring 95 feet by 50ft by 22ft. The total cost comes to nearly K200 million (2000 lakhs, or about US$200,000) with materials being the biggest expense.
 All figures provided by Marvels Wealth Construction Company.
By the numbers: the cost of constructing a building
   M   a   t   e   r   i   a    l   L   a    b   o   u   r   C   o   m   p   a   n   y   C    h   a   r   g   e   s
   T   r   a   n   s   p   o   r   t   a      o   n   C    h   a   r   g   e   s   G   e   n   e   r   a    l   I   n   s   t   a    l    l   a      o   n   S   e   p      c   T   a   n    k
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