Friday, September 22, 2017

Rent market booms post-Thadingyut

Rentals are booming again as Yangon’s housing market enters the post-festival phase, traditionally a time for greater dynamism.

Demand for apartments soared during September as renters sought new accommodation with a view to moving in October. And the custom of putting off weddings until after Thadingyut usually signals an influx of young couples on the market, setting up their own home together.

U Min Min Soe, of (Mya) Pan Tha Kin real estate, said demand for rentals had doubled in September, as the Buddhist lenten season neared its close.

“Apartment renting deals are usually active in the Thadingyut season. People seek accommodation for various reasons. Some people observe the custom of refraining from moving house during lent are now ready to move, and couples who marry after Thadingyut are also looking,” he said.

U Min Min Soe said 70 percent of rental inquiries are for residential apartments, rather than condominiums or houses.

“Most condominiums and houses are rented by companies and long-stay foreigners. They usually take a place for a year or more, and extend their agreements if they are satisfied with the place. The rental market for high-end property doesn’t change as much as the apartment market,” he said.

He said most apartments are rented on six-month or yearly contracts.

Ma Khet Khet, an agent with Moe Myint Thawda Real Estate, said apartments priced at K80,000-K100,000 were most in demand.

“Half the inquiries are for ordinary apartments, and half are for condos or houses. The number of customers looking for rentals increased significantly in September,” she said.

Ma Khet Khet said townships with good transportation area such as Sanchaung, Lanmadaw, and Latha were greatly sought after.

Though rents increase by about K10,000 each year, Sanchaung township resident Daw Zin Min said staying put could still be cheaper than finding a new apartment.

“We negotiate with the apartment owner not to raise the rent after the first year. If they want to increase the rent after that, we continue our renting deals because it can be very expensive to move elsewhere, what with moving charges and agents’ fees,” she said.