Open season: Govt budgets for road ahead
Handmade brick (from Taikkyi)
Pebble (bright white)
Galvanised roof (Elephant thick)
Galvanised roof (Five Star)
This size ranges from 6 to 12 feetGalvanised roof (four angle colour)
K500perfoot K520perfoot K570perfoot
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
, 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
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
AUNG KYAW NYUNT
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
U Kyaw Lwin, Union Minister for Construction