Land plots throughout six townships in downtown Yangon are continuing to skyrocket, with an average increase of $700 a square foot to $800, now that the government has permitted three-year leases to owners.
Buyers are speculating land in the central business district to build high-grade condominium space as the influc of foreign investors and an urgent need for offices has left few available office spaces, said Khin Maung Aye, an executive for the Myanmar Real Estate Brokers’ Association Information Departent.
“There are no offices in high-grade buildings left when foreigners arrive here to look, so investors are now buying up the plots left downtown,” he said.
An agent at Shwe Kan Myay Real Estate said that buyers favor land on main roads instead of downtown’s many side streets. And at the current price of land, a standard condo – 100 by 100 square feet – will cost the buyer about 8 million dollars.
Khin Maung Aye said that he recent showed five plots to potential buyers downtown and sold two of them. Previously, he only had inquiries by phone.
“The government extended the lease on land deals to three years, which gives more opportunities to buyers,” Khin Maung Aye said.
The extension of the term for the special power of appointment was extended from one year to three last month.
Yangon’s office space is limited as demand continues to outreach supply, with foreign organizations occupying premier blocks including Sakura Tower and Sule Business Center.