In 2017, Yangon will welcome the city’s newest luxury high-rise condominium complex, 68 Residence, which will be located in Bahan township at the corner of Kabar Aye Pagoda and Sayar San roads.
“We Define Lifestyle” is the promise made by United GP Development, a Myanmar real estate development company founded by Dr Aung Kyaw Win – also the founder of the well-known Golden Palace Gold & Jewelry Business Group.
Dr Aung Kyaw Win first started in business in the gem and jewellery industry. With an entrepreneurial drive, and solid commitment to customer service and quality standards, he established Golden Palace Gold & Jewellery as a market leader in Myanmar’s gem industry.
“Because the gold and jewellery business is based on trust – and we must provide customers with excellent product, service, and after service – we know the value of strong client relationships,” he said.
It is with these same values he decided to diversify his business to include real estate development.
“Our commitment to quality, service and product will be applied to how we treat our clients at 68 Residence,” Dr Aung Kyaw Win told Myanmar Business Today in an interview.
Dr Aung Kyaw Win said he decided to enter into the real estate market as a means to “support the country’s infrastructure development efforts.”
“If any country is starting to develop, infrastructure must be the most important area to develop.”
68 Residence, a 27-storey condominium building, will boast 369 apartment homes – promising to distinguish themselves from any other luxury high rise through unmatched quality and customer service.
The firm said the property will be built to international standards and include premium features such as a home automation system controlled by wireless devices, fine dining, an infinity pool, and a sky garden with views of Shwedagon Pagoda and Inya Lake.
Among the property’s elegance and functionality, a feature that sets it apart is the commitment to safety. Dr Aung Kyaw Win said 68 Residence will “exceed” standard Myanmar building codes by including an integrated fire alarm and sprinkler system in each apartment home and throughout the property.
With building codes and enforcement yet to catch up to international standards, only a few select buildings and hotels in Myanmar have such a safety mechanism. Enhanced security features, such as finger print identification technology, will secure each apartment and the property, he added.
Additional safety protocols include the use of imported building materials that meet international standards and the use of expert developers and designers that will work alongside Myanmar companies to build the property while working to build capacity and skills in the domestic businesses and the population.
The development of 68 Residence is a partnership between United GP Development and Singapore-based CaptiaLand Limited. Building will begin in September and is expected to cost approximately $150 million. The property will target affluent Myanmar diaspora and international investors.
While part of the target market is international investors, their ability to invest in residential property will depend upon the passing of the Condominium Law and its rules that will determine an international investor’s ability to purchase a home. In its current form, the Condo Law would allow foreign investors to purchase a condo on the 6th floor and above, but limits the amount of foreign buyers to 40 percent in a single building.
In June, the draft was sent back to the government due to concerns in the definition of the term ‘condo’, in addition to many other potential problems. There is no word on when a second draft will be submitted to parliament for debate and no expected time frame as to when the law might be passed. The passing of the Condo Law is expected to have significant impact on luxury condo market.
Other issues revolve around the sustainability of the property market, which some believe is an expanding bubble in imminent threat of popping. Urgent demand has sent prices skyrocketing and has put pressure on buyers and renters that are now reaching their limits.
However, the luxury condominium niche is expected to perform differently. Price is a main factor for the average buyer, but the luxury homebuyer is more concerned with long-term investment, making the prospects for Myanmar’s development and continued prosperity more important than the immediate sticker shock. Dr Aung Kyaw Win said he is “optimistic” about the future of the Myanmar economy and the prospects for future real estate development.