Property developers and investors have been looking forward to stable regulations and foreign participation in the local real estate sector since the Condominium Law was enacted in 2016 and gradually enforced.
Firmer home ownership laws are expected to draw higher volumes of foreign investment, which, in turn, will benefit businesses along the supply chain, from construction to interior design.
The 2016 Condominium Law addresses land ownership as well as foreign participation in the local property market.
According to the law, foreigners now have the right to own up to 40 percent of the units in a condominium project, while each individual can buy up to 25pc of the units.
“Direct sales or reselling in the second hand market can be carried out by anyone until the foreign-ownership threshold is reached,” said U Wai San Thein, registering officer for collectively owned buildings in Yangon Region.
“Our registration office will ensure the units sold in a condominium does not exceed 40pc. So, sellers have the obligation to inform us when a transaction is conducted,” said U Wai San Thein.
Foreigners who do not hold a National Registration Card can purchase condos in Myanmar, excluding those who have been blacklisted by the country. The purchase can only be done via official foreign currency remittance from overseas.
The law allows not only purchasing rights but also construction rights and joint venture investments as well. Units of a joint venture development can be sold only after this is reported to the Management Committee via a registration officer.
If a condo unit holder, both foreign or local, wishes to resell his property, this can be sold to another foreigner, until foreign ownership in the project hits the 40pc threshold.
Within the next 2-3 months, units registered under the Condominium Law will be in the market and can be sold to foreigners, said U Myo Myint, a member of the Yangon Regional Condominium Management Committee.
Only buildings constructed on a minimum of 0.5 acre (20000 square feet) of land exceeding six-storeys will be classified as condominium apartments.
In the recently-enacted condominium rules, it was also stipulated that all condo buyers, including foreigners, will own the land title of the condo according to the number of shares or units owned. However, property ownership of foreigners is limited to the duration of the life of the building.
As the Condominium Law lays out clearer regulations for foreign participation in the real estate sector, sales and investments are expected to improve as well as benefit the construction and other sectors in the years to come, real estate agents said.
Before this law, foreigners coming to Myanmar on long term business or for education were forced to rent apartments which were subject to high and volatile rental rates. Now they have more options to invest in a unit or rent at more stable rates.
Source : Myanmar Time