Monday, September 25, 2017

Dawei’s real estate market continues to attract buyers

Commercial real estate in the centre of Dawei has increased in value by as much as 500 percent, brokers in the town say.  (Hein Latt Aung / The Myanmar Times / April 04, 2011)Commercial real estate in the centre of Dawei has increased in value by as much as 500 percent, brokers in the town say.  (Hein Latt Aung / The Myanmar Times / April 04, 2011)

Dawei's property market remains in a heightened state months after the announcement that a 250-square-kilometre special economic zone (SEZ) and deepsea port would be built there, residents told The Myanmar Times last week.

Following the signing of an agreement between the government and Italian-Thai Development on November 2, property prices in the previously sleepy seaside town skyrocketed by as much as 500 percent.

Local real estate agent Ko Soe Thein said the most sought-after sites were along Azarni, Yay, Bogyoke and Mingalar roads, which had risen the most in value.

“It’s hard to say there’s a market price – many sellers just give a figure and the buyers are just accepting that without haggling at all.

“Some properties have been sold for as much as five times what they were worth before the SEZ was announced. Before that the most expensive piece of land in Dawei might have sold for K300 million but some properties have sold for K1.5 billion since then,” he said.

He said the major factors that determined a property’s value were its frontage (width) and location, not necessarily its overall size.

“An 85-foot-wide site on Azarni Road changed hands just before the SEZ was announced for less than K100 million but last week sold again, this time for K300 million.

“The owner of a piece of land in Myut village was just offered K1 billion but has so far refused to sell,” he added.

Dawei resident Ko Sithu said the town has been overrun in the past few months by businesspeople from Yangon, Mandalay and upper Myanmar all looking to buy properties.

Ko Nay Lin came from Mandalay to investigate the town’s investment potential but said he found the market “confusing”.

“There’s no established real estate market like you’d find in Yangon or Mandalay. And prices in the same areas vary by as much as K5 or K10 million for a similarly sized block,” he said.

He added that the newly established satellite township of San-Chi, which is on the road between Dawei and Nabulay Yayphyu township, was proving popular with investors.

He said the township was attractive because it had many large, empty plots of land and will eventually house the Tanintharyi Hluttaw, the chief minister’s house and accompanying structures.

“Most owners own two sets of ownership papers, which is confusing and potentially troublesome for buyers and I don’t want to invest in an uncertain situation, so I’m just going to watch what happens,” said Ko Nay Lin, who works as a gems trader.

– Translated by Zar Zar Soe